The combined Public Cloud IaaS and PaaS market is forecast to have revenues of $400 billion in 2025 with a compound annual growth rate (CAGR) of 28.8% during the 2021-2025 period, according to a recently published forecast from International Data Corporation (IDC).
“Enterprise spending on public cloud infrastructure continues to grow faster than traditional IT infrastructure segments,” said Andrew Smith, research manager Cloud Infrastructure Services. “We expect all workload segments to grow in the double digits — some slightly faster than others — as enterprises emerge from 2020 and continue to prioritize workload migration and modernization using public cloud infrastructure.”
Some highlights from IDC:
- Application development and testing, structured data management, and structured data analytics will be the largest workload segments by revenue share. Unstructured data analytics/data management and media streaming are forecast to be the fastest growing segments with CAGRs of 41.9% and 41.2%, respectively. Other business applications, file and print, and content applications will grow slower than the overall market average while still delivering double-digit growth throughout the forecast period.
- Public cloud services remain an essential part of enterprise recovery strategy as IT organizations reevaluate budgets, build infrastructure focused on business resilience, and work toward operating efficiently and managing risk in a post-COVID-19 world.
- Enterprises are shifting from workload migration to workload modernization on public cloud. In 2020, we saw IaaS buyers increasingly prioritize application modernization efforts, viewing modernization as an integral component of the move toward agile application delivery and cloud operations.
- Relentless enterprise data growth continues to push many workloads to the public cloud, as enterprises look to effectively manage data growth, as well as their IT budget. In many cases, cloud infrastructure and application platforms help meet this need by enabling agile and consistent scaling of capacity that can be utilized on demand.