Global public cloud spending set to double by 2023, driven by as-a-service delivery

Cloud services

Spending on public cloud services is already significant as more and more businesses seek to take advantage of the cost savings and scalability that it offers.

The public cloud sector is by no means at its peak, however. The latest findings from research company IDC [1] suggest that public cloud spend could have more than doubled from its present level by 2023. But what’s driving this dash to the cloud? Much of it appears to be down to spending on digital transformation projects and a move towards as-a-service delivery models for software, infrastructure and more. What’s more, this change is happening across a range of different industries with some embracing the cloud more enthusiastically than others.

At your service

According to IDC’s figures, software-as-a-service (SaaS) is set to account for more than half of public cloud spend over the next few years. Leading the way in this are expected to be enterprise resource management (ERM) and customer relationship management (CRM) software as businesses seek to move away from less flexible, in-house legacy systems. Systems infrastructure software is expected to play a major role in the expansion too, with service and system management software along with security software being high on business shopping lists.

Infrastructure-as-a-service (Iaas) and platform-as-a-service (PaaS) are expected to see rapid growth too. IDC sees IaaS spending, covering areas such as storage and servers, growing by over 30 per cent. PaaS spending is expected to be close behind as companies spend on application platforms, data management software and integration and orchestration projects.

As-a-service delivery models work well for businesses for a number of reasons. Firstly, it offers mobility; systems can be accessed from any location, so for multi-site businesses and those embracing flexible and mobile working, there’s equal access to the same systems for all staff. This also means no sacrifice in levels of security and quality.

Flexibility is a key advantage too. As-a-service systems can be kept up to date more easily with minimal downtime and they can be scaled quickly to take account of growth or seasonal variations in demand.

It also frees IT teams from everyday maintenance and monitoring tasks. This allows greater focus on longer-term business strategy. In the modern commercial world, it’s a given that things are going to change. Adopting as-a-service models allows enterprises to respond more effectively and more quickly.

Of course, cost is an issue too but the immediate savings to be made from cloud delivery shouldn’t be looked at in isolation. Effective use of the technology can also boost revenue and lead to faster growth, thanks to greater responsiveness.

Across the board

The cloud is being adopted in a wide variety of sectors but it’s likely that some will see more gains from it than others. IDC expects to see the greatest growth in public cloud investment coming from banking, professional services (such as accountancy and legal) and manufacturing. Between them, these industry sectors are expected to account for around a third of spending on public cloud services in the coming years.

There are variations as to how these sectors will allocate their cloud spend budgets. IDC believes that, based upon its research, IaaS will account for around 40 per cent of spend from professional services businesses, compared to only around 30 per cent across the board. The professional services sector is also expected to deliver the fastest growth in public cloud spending, at 25.6 per cent over the next five years.

The public cloud has undoubted attractions. However, in the dash to adopt it, companies shouldn’t lose sight of the need for compatibility and obtaining the right fit for the business.

If you have adopted cloud technologies already or are thinking about it, give Cloudworks a call and we will find the best strategy and solution to fit your business. We are experts in migrating businesses to the cloud and adopting new cloud strategies.

Call us on 0115 824 8244 or email to find out more.