The International Data Corporation (IDC) Worldwide Semiannual Public Cloud Services Tracker reveals that the global revenue for the public cloud services market totaled $669.2 billion in 2023, an increase of 19.9% from 2022.
Revenue sources
Software as a Service—Applications (SaaS—Applications) (45%), Infrastructure as a Service (IaaS) (19.9%), Platform as a Service (PaaS) (18.4% ), and Software as a Service—System Infrastructure Software (SaaS—SIS) (17.0%) were the largest sources of public cloud services revenue in 2023.
"Vendors are focused on being strategic partners to their customers by delivering highly performant, developer-friendly, trustworthy, and secure offerings that help users deliver intelligent applications more efficiently," said Adam Reeves, research director, PaaS for Developers of Modern and Edge Applications.
Projections
IDC projects global public cloud services revenue to surpass $800 billion in 2024, delivering a five-year compound annual growth rate (CAGR) of 19.5%, with worldwide revenues reaching $1.6 trillion in 2028.
"The mainstreaming of AI is driving organisations to rethink their infrastructure strategy," said Dave McCarthy, research vice president of Cloud and Edge Infrastructure Services. "Public cloud IaaS will be an attractive source for AI-ready infrastructure as cloud service providers heavily invest in the high-performance compute, storage, and networking services needed for AI workloads. The on-demand and pay-as-you-go tenets of cloud infrastructure facilitate access to the latest AI technology without large upfront investments or supply chain delays."
