The International Data Corporation (IDC) predicts the number of new cloud-based solutions will triple in the next four to five years. To examine the current status of cloud deployment in the context of different vertical industries, IDC today unveiled “Cloud Computing: The Essential Foundation of Industry Digital Transformation — Worldwide and U.S. Cloud Forecast by Vertical, 2015–2019,” (Document#256944), the first of four special reports IDC will be publishing on the 3rd Platform technologies by vertical.
This study identifies industry drivers and barriers of using cloud technology and presents insights in terms of how to leverage cloud computing to create new value. Key findings from the report include:
- IDC predicts that the public cloud computing will reach almost $70 billion in 2015 worldwide, with the top 5 verticals (discrete manufacturing, banking, professional services, process manufacturing, and retail) accounting for approximately 45% of the total spend for the market.
- The major opportunities for cloud within verticals come from the development of intelligent industry solutions, which are built on top of a new platform that includes cloud as well as big data and analytics, mobile, and social.
- Those IT suppliers that showcase the long-term benefits and the true value of the cloud as a platform in a given vertical (e.g., efficiency gains in business processes and improvement in customer acquisition/customer experience) will be most successful.
- The ease of purchasing cloud-based solutions has helped transfer buying power from IT to functional lines of business like marketing, finance, and operations.
- Security and regulatory remains the biggest barrier for cloud adoption across industries like government and financial services, while loss of perceived control over IT assets and massive legacy systems are also stumbling blocks for using cloud.
Industry-specific applications will be a driving force as businesses look for solutions that can be easily configured to their unique business and vertical requirements. With the huge increase in the number and diversity of services available in the market, organizations across the industries will shift steadily toward cloud-first strategies to enable digital transformation. The new study provides a vertical forecast by 20 industries for the United States and worldwide for 3 public cloud computing technologies — software as a service, platform as a service, and infrastructure as a service — and 2 primary software markets for SaaS — applications and system infrastructure software — and 1 primary software market for PaaS — application development and deployment.
"The technological innovations and enabling capabilities unleashed by cloud have fostered new opportunities across the industries," says Eileen Smith, program manager, IDC Global Technology and Research Group. "As a result, it is necessary for both technology vendors and buyers to recognize the industry drivers and barriers of cloud deployment, to understand the business transformation brought by cloud, and to act upon the changes that will shape business and technology strategy in the coming years."