New Delhi: Global spending on public IT cloud services is expected to grow by 23.5 percent annually to more than USD 107 billion by 2017, driven by emerging markets, research firm IDC said on Tuesday.
Worldwide spending on public IT cloud services will reach USD 47.4 billion in 2013, IDC said in a forecast.
"Over the 2013-17 forecast period, public IT cloud services will have a compound annual growth rate of 23.5 percent, five times that of the IT industry as a whole," the forecast, which does not include revenue from dedicated private cloud deployments, said.
Cloud spending in emerging markets is expected to experience a CAGR of 37.3 percent during 2013-2017, a rate almost twice that of developed markets, the forecast said.
However, the US would remain the largest public IT cloud services market, although its share is expected to decline from 56.9 percent in 2013 to 43.9 percent in 2017.
Cloud services are starting to shift into next phase where the scale of adoption will be bigger and more user and solution driven, IDC said.
In this phase of growth, cloud and the other third platform technologies - mobile, social, and Big Data - will become even more interdependent as they continue to drive growth and innovation across all industries that depend on IT.
The growing focus on cloud services as a business innovation platform will help to drive spending on public IT cloud services to new levels throughout the forecast period, IDC said.
Among five cloud technology categories, software as a service (SaaS) will remain the largest segment capturing 59.7 percent of revenues in 2017.
The fastest growing categories will be platform as a service (PaaS) and infrastructure as a service (IaaS), with CAGRs of 29.7 percent and 27.2 percent, respectively.
"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, Gens said.