Analysts Put Public Cloud Market at $107 Billion in 2017
Although the public segment of the cloud computing landscape has been scrutinized since its inception in the business world, decision-makers are once again becoming entranced by the prospective benefits of using the technology. Because the hosted services are highly cost-effective and scalable, organizations of all sizes and industries can use the solutions to improve long-term operations for less money than doing so using other resources.
IDC recently reported that cloud computing has played a major role in the way companies procure and deploy IT services. This finding has led analysts to believe that a new chapter in the cloud era is emerging because global spending on public cloud services is forecast to reach more than $107 billion in 2017, increasing from $47 billion this year. These prospective values suggest that the public cloud market is expected to expand at a compound annual growth rate of 23.5 percent in the coming years, which is five times faster than the overarching IT industry.
"The first wave of cloud services adoption was focused on improving the efficiency of the IT department," said Frank Gens, senior vice president and chief analyst at IDC. "Over the next several years, the primary driver for cloud adoption will shift from economics to innovation as leading-edge companies invest in cloud services as the foundation for new competitive offerings."
Analysts noted that the second phase of the cloud era will encourage the hosted services to be even more interdependent as they drive business executives to innovate and expand their horizons.
IDC stated that the growth of public cloud technologies is largely due to the rapidly expanding offerings available through trusted partners, which are allowing companies from around the world to invest in the cloud with fewer concerns. At the same time, increased cloud use will also drive inevitable consolidation in the market because some vendors will be better at attracting and retaining clients than others. This trend will force cloud providers to improve their services to differentiate themselves from other firms offering similar products.
A CIO report revealed that increased attention on the public cloud will also fuel the need for hybrid solutions that combine the public cloud and dedicated servers. By embracing this strategy, organizations can keep highly sensitive resources on-site or segmented while migrating more scalable services to off-premise environments.
The enterprise IT landscape will continue to evolve and force executives to embrace cloud and other highly sophisticated technologies if they want to stay competitive. Decision-makers should plan ahead and work with trusted vendors to ensure they leverage the tools and deploy the strategies they need to thrive in an increasingly cutthroat business world.
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