Global spending on public cloud services and infrastructure will more than double over the period 2019-2023, according to the latest update of the International Data Corporation (IDC) Worldwide Semiannual Public Cloud Services Spending Guide. With a compound annual growth rate of five years of 22.3%, public cloud spending will increase from 229 billion U.S. dollars in 2019 to nearly 500 billion U.S. dollars in 2023.
SaaS is the largest category of the whole, with more than half of all public cloud computing spending in the entire forecast. Spending on SaaS is dominated by spending on applications. The most commonly purchased SaaS applications will consist of customer relationship management (CRM) and enterprise resource management (ERM). SIS expenditure will be led by the purchase of security software and system and service management software.
Three sectors, professional services, manufacturing, and banking, will account for more than a third of all public cloud services expenditure during this period. While SaaS will be the most important category of investment for all industries, the share of IaaS (Infrastructure as a Service) will increase significantly. For example, by 2023, IaaS spending will account for more than 40% of spending on public cloud services by the professional services sector, compared to less than 30% for most other sectors.
It is the very large companies, with more than 1,000 employees, that will account for more than half of all public cloud spending, while medium-sized companies, 100-499 employees, will provide about 16% of the global total.