We’ve been claiming this is the decade of the service provider – now IDC released its Worldwide and Regional Public IT Cloud Services 2012-2016 Forecast which provides evidence to support our claim.

Public cloud services, defined by IDC as “an offering designed for, and commercially offered to, a largely unrestricted marketplace of potential users,” will surpass $100bn (£62bn) in 2016. The forecast shows that by year end spending across the globe will reach $40bn as the market grows at five times the rate of the IT industry as a whole.


Additionally, IDC predicts that IT cloud services will account for 16 per cent of IT revenue in applications, system infrastructure, platform-as-a-service, servers and basic storage by 2016.

According to IDC Chief Analyst Frank Gens, “This cloud forecast, our fifth annual since 2008, marks the start of a new stage of growth and maturity in the world of cloud services. As spending approaches the $100 billion milestone in 2016, emerging markets will emerge as the epicenter of cloud innovation and growth. Cloud investment priorities will shift from simply improving IT operations to delivering business innovation. SMBs will rise as a critical customer segment — providing the scale needed to bridge IT vendors from old financial models to the new. And platform as a service, which has had a slower-than-expected start in 2011 and 2012, will emerge as the strategic foundation for the cloud services marketplace.”

CRN quoted Gens in an article: “The IT industry is in the midst of an important transformative period as companies invest in the technologies that will drive growth and innovation over the next two to three decades.

“By the end of the decade, IDC expects at least 80 per cent of the industry’s growth, and enterprises’ highest-value leverage of IT, will be driven by cloud services and the other third-platform technologies.”

IDC also predicts the US and western Europe will enjoy the most growth in the market.

With public cloud growth skyrocketing, it is for the service provider to capture the market. This is after all, the decade of the service provider.

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