Cloud computing revenues to reach $554bn by 2021

A new forecast released by the International Data Corporation (IDC) has predicted that worldwide cloud computing revenues will hit $554 billion by 2021, more than double the revenue achieved in 2016.

The organisation's first report on the "whole cloud" revealed that the majority of these revenues will be driven by public cloud services, which figures suggest will account for 48 per cent of spending on cloud computing by 2021. This rise marks a 41 per cent increased compared to 2016 figures.

These figures jump from 65 per cent in 2016 to 68 per cent in 2021 when the research takes into account other cloud computing services, including spending on necessary hardware and spending on the services of professional management services.

Success in the cloud computing market is also expected to be enjoyed by providers of cloud services, who are expected to benefit from 76 per cent of all cloud-related spending in 2021.

Frank Gens, senior vice president and chief analyst for IDC commented that one of the most obvious results of the study was the suggestion of an industry-wide move towards the cloud consumption model. However, he added that tech innovation is also a crucial driver.

He said: "Equally important, though, is the steady drumbeat of tech innovation that is coming from the major public cloud suppliers, making it virtually impossible for enterprises and developers seeking advantage through IT not to embrace the public cloud."

Some of the innovative cloud services that have had the most significant impact on the growth of the cloud computing industry in the past few years include blockchain services, IoT back-end data services, serverless services and encryption services. As a results of the research, IDC has suggested that this level of innovation is likely to continue at the same pace in the foreseeable future.