The combined Public Cloud Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) market is forecast to reach $400 billion in revenues in 2025 with a compound annual growth rate (CAGR) of 28.8 percent the 2021-2025 forecast period, an IDC report showed on Thursday.
Cloud IaaS and PaaS is a critical, enabling components for the future of digital infrastructure.
Public cloud services remain an essential part of enterprise recovery strategy as IT organizations reevaluate budgets, build infrastructure focused on business resilience, and work toward operating efficiently and managing risk in a post-Covid-19 world.
“Enterprise spending on public cloud infrastructure continues to grow faster than traditional IT infrastructure segments,” said Andrew Smith, research manager of Cloud Infrastructure Services.
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“We expect all workload segments to grow in the double digits — some slightly faster than others — as enterprises emerge from 2020 and continue to prioritise workload migration and modernization using public cloud infrastructure,” he added.
Unstructured data analytics/data management and media streaming are forecast to be the fastest-growing segments, with CAGRs of 41.9 percent and 41.2 percent, respectively.
The report mentioned that other business applications, file and print, and content applications will grow slower than the overall market average while still delivering double-digit growth throughout the forecast period.
Enterprises are shifting from workload migration to workload modernization on the public cloud.
“Relentless enterprise data growth continues to push many workloads to the public cloud, as enterprises look to effectively manage data growth and their IT budget, ” the report added.