Dive Brief:
- Cloud-based software will grow three times faster than traditional products over the next five years, according to IDC.
- Worldwide revenues from public cloud services will reach $195 billion by 2020, from $96.5 billion this year, the IT research firm predicts.
- IDC said manufacturing, banking and professional services are currently spending the most on public cloud services.
Dive Insight:
Enterprises will continue to choose hosted services over traditional products for at least the next several years. Rather than putting up their own infrastructure, organizations instead turn to hosting companies with the technical aptitude for continuous service.
"By 2020, about half of all new business software purchases will be of service-enabled software, and cloud software will constitute more than a quarter of all software sold," said Benjamin McGrath, senior research analyst, SaaS and Business Models at IDC.
The biggest growth over the next four years is expected to come from infrastructure and platform as a service. IDC also said the U.S. will be the biggest market for public cloud services, generating almost two thirds of worldwide revenues.
