IDC projects that the total worldwide performance-intensive computing as a service (PICaaS) market will grow from US$22.3 billion in 2021 to US$103.1 billion in 2027 with a compound annual growth rate (CAGR) or 27.9% over the 2022-2027 forecast period.
IDC recognises performance-intensive computing as a service market as a fast-developing category of public cloud services offerings with end users leveraging the advantages of special cloud technology to run mathematically intensive computations.
Mathematically intensive computations are typically found in artificial intelligence (AI), high-performance computing (HPC), Big Data and analytics (BDA), and engineering/technical use cases. The percentage that the PICaaS market represents of the total US$241.3 billion as-a-service market for 2022 is 12.5%.
The PICaaS market encompasses revenue generated by cloud service providers for compute, storage, and software offerings within their infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) portfolio for AI, BDA, HPC, and engineering/technical workloads.
The BDA as a service market segment will remain the predominant contributor to the overall market throughout the forecast period, followed by AI as a service. The HPC-as-a-service market segment shows the highest growth rate, followed by AI, and then engineering/technical workloads.
Drivers for the market growth
- Performance-intensive computing goes mainstream and is increasingly considered mission-critical
- A growing number of enterprises identify themselves as digital businesses
Inhibitors for the market growth
- Complexity in managing hybrid technologies and lack of HPC talent within enterprises
- Transferring PIC workloads from the public cloud back into dedicated IT environments
- Disrupted IT spending plans (due to supply chain issues, labour shortages, economic slowdown, and geopolitical tensions)
Recommendation for suppliers
- Formulate an end-to-end bundled performance-intensive computing as a service product offering
- Demonstrate a secure and compliant cloud infrastructure
- Segment prospects by their level of enterprise intelligence and communicate on early vendor engagement opportunities and cost transparency
- Align teams with performance-intensive computing capabilities and demonstrate abilities to work with evolving roles such as chief data officer
- Be a trusted advisor of hybrid deployment models for performance-intensive computing workloads, offer multi-cloud support, and showcase a strong partner ecosystem
"IDC is projecting significant growth in the performance-intensive computing as a service market, which measures the revenue that providers generate from offering to compute instances, storage, and software for Big Data and analytics, AI, HPC, and engineering/technical workloads," said Madhumitha Sathish, research manager for performance-intensive computing-as-a-service at IDC.
"These workloads all demand more advanced technologies, and cloud service providers are investing heavily to capture market share in a market that will grow to US$103.1 billion by 2027."Madhumitha Sathish