International Data Corporation (IDC) predicts that public cloud computing will reach almost $70 billion in 2015 worldwide, with the top-5 verticals (discrete manufacturing, banking, professional services, process manufacturing, and retail) accounting for approximately 45% of the total spend for the market. These study results were unveiled through IDC’s report, Cloud Computing: The Essential Foundation of Industry Digital Transformation – Worldwide and U.S. Cloud Forecast by Vertical, 2015–2019.
As the cloud market enters an “innovation stage,” there will be an explosion of new solutions and value creation on top of the cloud. IDC predicts that there will be more industry-specific cloud services platforms and marketplaces run by leaders in each industry seeking to attract communities of thousands of innovators to create valuable new services.
Other findings from IDC’s cloud study include:
- Those IT suppliers that showcase the long-term benefits and the true value of the cloud as a platform in a given vertical (e.g., efficiency gains in business processes and improvement in customer acquisition/customer experience) will be most successful.
- The ease of purchasing cloud-based solutions has helped transfer buying power from IT to functional lines of business like marketing, finance, and operations.
- Security and regulatory issues remain the biggest barriers for cloud adoption across industries like government and financial services, while loss of perceived control over IT assets and massive legacy systems are also stumbling blocks for using cloud.
“The technological innovations and enabling capabilities unleashed by cloud have fostered new opportunities across industries,” said Eileen Smith, Program Manager, IDC Global Technology and Research Group. “As a result, it is necessary for both technology vendors and buyers to recognize the industry drivers and barriers of cloud deployment, to understand the business transformation brought by cloud, and to act upon the changes that will shape business and technology strategy in the coming years.”