Cloud Computing Forecasts

According to IDC, worldwide spending on public cloud computing will increase from $67B in 2015 to $162B in 2020 attaining a 19% CAGR. These and many other fascinating findings are from: The Salesforce Economy: Enabling 1.9 Million New Jobs and $389 Billion in New Revenue Over the Next Five Years, IDC. (PDF, no opt-in).

Infrastructure-as-a-Service (IaaS) is projected to grow 36.8% in 2017 and reach $34.6B. Software-as-a-Service (SaaS) is expected to increase 20.1%, reaching $46.3B in 2017. Source: Gartner Says Worldwide Public Cloud Services Market to Grow 18 Percent in 2017.

Deloitte Global predicts that procurement of IT technologies will accelerate in the next 2.5 years from $361B to $547B. At this pace, IT-as-a-Service will represent more than half of IT spending by the 2021/2022 timeframe. Source: Deloitte Technology, Media and Telecommunications Predictions, 2017 (PDF, 80 pp., no opt-in).

IDC predicts that public cloud data centers will account for the majority of this spending ( 60.5%) while off-premises private cloud environments will represent 14.9% of spending. On-premises private clouds will account for 62.3% of spending on private cloud IT infrastructure and will grow 13.1% year over year in 2017. Source: Spending on IT Infrastructure for Public Cloud Deployments Will Return to Double-Digit Growth in 2017, According to IDC.

Results from the 2016 Harvey Nash / KPMG CIO Survey indicate that cloud adoption is now mainstream and accelerating as enterprises shift data-intensive operations to the cloud. Source: Journey to the Cloud, The Creative CIO Agenda, KPMG(PDF, no opt-in, 14 pp.)

AWS announced that customers had migrated more than 23,000 databases using the AWS Database Migration Service since it became available in 2016. Sources: com Announces First Quarter Sales up 23% to $35.7 Billion. The image is from Amazon’s Q1 2017 Financial Results Conference Call Slides.

Net sales increased 23% to $35.7 billion in the first quarter, compared with $29.1 billion in first quarter 2016. Source: Cloud Business Drives Amazon’s Profits.

Overall Azure adoption grew from 20% to 34% percent of respondents to reduce the AWS lead, with Azure now reaching 60% of the market penetration of AWS. Google also increased adoption from 10% to 15%. AWS continues to lead in public cloud adoption (57% of respondents currently run applications in AWS), this number has stayed flat since both 2016 and 2015. Source: RightScale 2017 State of the Cloud Report (PDF, 38 pp., no opt-in)

In the same period, SaaS-based apps are predicted to grow at an 18% CAGR, and IaaS/PaaS is predicted to increase at a 27% CAGR. Source: Bain & Company research brief The Changing Faces of the Cloud (PDF, no opt-in).

Additional technologies that will have a significant financial impact in 2017 include the Internet of Things, Artificial Intelligence (AI) (16%) and 3D printing and virtual reality (14% each). Source: 2017 BDO Technology Outlook Survey (PDF), no opt-in).

Overall IT spending will grow from $59B CAD in 2015 to $65B CAD in 2020, by which time IT employment in Canada will surpass 1.2 million jobs. From the end of 2015 to the end of 2020, the adoption of cloud computing will generate more than 50,000 new jobs in Canada. Source: How the Microsoft Ecosystem and Cloud Computing Will Create 110,000 New Jobs in Canada from 2015 to 2020 (PDF, no opt-in).

As of today there are 17,422 APIs listed on the Programmable Web, with many enterprise cloud apps concentrating on subscription, distributed order management, and pricing workflows.  Sources: Bessemer Venture Partners State of the Cloud 2017 and 2017 Is Quickly Becoming The Year Of The API Economy. The following graphic from the latest Bessemer Venture Partners report illustrates how APIs are now the background of enterprise software.