"Adoption of public (shared) cloud services continues to grow rapidly as enterprises, especially in professional services, telecommunications, and retail, continue to shift from traditional application software to software as a service (SaaS) and from traditional infrastructure to infrastructure as a service (IaaS) to empower customer experience and operational-led digital transformation (DX) initiatives," said Eileen Smith, program director, Customer Insights and Analysis.
IDC forecasts global spending on public cloud services and infrastructure to reach US$500 billion by 2023, with a five-year compound annual growth rate (CAGR) of 22.3%.
The largest category, Software as a Service (SaaS) accounts for more than half of all public cloud spending with customer relationship management (CRM) and enterprise resource management (ERM) leading. SIS spending will be led by purchases of security software and system and service management software.
Infrastructure as a Service (IaaS) will be the fastest growing category of cloud spending with a five-year CAGR of 32.0%. PaaS spending will grow nearly as fast (29.9% CAGR) led by purchases of data management software, application platforms, and integration and orchestration middleware.
Professional services, discrete manufacturing, and banking are the top three public cloud spenders, with China growing fastest during the forecast period with a 49.1% CAGR.