Public IT Cloud Service Revenue to Exceed $43 Billion in 2016


U.S. revenue for public IT cloud services is predicted to surge from $18.5 billion in 2011 to $43.2 billion in 2016, according to a report by International Data Corp.

The company's forecast shows a compound annual growth rate of 18.5 percent for cloud service revenue over the forecast period. In this report, the main focus is public cloud services shared among unrelated enterprises and consumers, open to unrestricted potential users, and designed for a market.

"According to our research, the three verticals that accounted for more than 50 percent of the spending in 2011 are discrete manufacturing, professional services, and process manufacturing," said Eileen Smith, program manager in IDC's Global Technology and Industry Research Organization. "This is not surprising as these industries are typically less risk averse and compliance-focused."

"Communications and media, education, and construction were found to be the fastest growing verticals. We expect the media portion of the communications and media vertical to continue to be one of the main users of storage on demand to enable continuous service for content-heavy customer offerings," Smith added.

Services and distribution, the largest sector, accounted for 30.3 percent of total revenue in 2011, while professional services alone accounted for nearly 40 percent of the entire category in 2011.

Manufacturing and resources, the next largest sector, accounted for 24 percent of total public IT cloud services in 2011. Discrete manufacturing alone accounted for 46.7 percent of the category in 2011.

Finally, infrastructure accounted for 12.3 percent of spending in 2011 and will account for 12.9 percent of spending by 2016.

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