The Public Cloud Computing Market will reach $70 billion, worldwide, in 2015, according to a new report released by the International Data Corporation (IDC) Tuesday. The report is just the latest in a series of large predictions for cloud growth in the next five years.
The report, “Cloud Computing: The Essential Foundation of Industry Digital Transformation — Worldwide and U.S. Cloud Forecast by Vertical, 2015-2019” (available here), aims to examine the status of cloud deployment across vertical industries, identify industry drivers and barriers for cloud adoption, and provide advice to companies seeking to leverage the cloud. The 47-page report is the first in a series of four major IDC reports examining platform technologies across verticals.
Industry Specific Applications Drive Growth and Market Diversification
IDC predicts that, as businesses look for solutions that can easily be adapted to their unique business and vertical requirements, industry-specific applications will emerge as a driving force for public cloud growth.
According to IDC, a large part of that growth will come from just five of the 20 vertical industries analyzed in the report. Discrete manufacturing, banking, professional services, process manufacturing and retail account for 45 percent of the predict $70 billion public cloud market cap in 2015.
With a many large organizations shifting towards a “cloud-first” IT strategy, the public cloud market now enters what IDC calls “the innovation stage,” wherein there will be an “explosion of new solutions and value creation on top of the cloud. Cloud service providers who are able to adapt their solutions to a wide range of applications will fare best in the “innovation stage,” says IDC.
“We have already seen such platforms and innovation communities in place in retail, financial services, media, and other industries,” says Eileen Smith, program manager, IDC Global Technology and Research Group. “This will reshape not only how companies operate their IT but also how they compete in their own industry. Technology suppliers will continue to see significant demand for their industry-specific solutions. It is important for these suppliers to develop strong customer-partner relationships with cloud/platform players to seize new opportunities.”
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