Cloud services will account for more than half of the global growth in software, server and storage spending in 2018, according to an IDC forecast.
The upshot is that public cloud services spending will hit $56.6 billion in 2014 en route to $127 billion in 2018. That growth equates to a compound annual growth rate of 22.8 percent.
According to IDC, growth will be driven by both vendors and customers moving to the cloud. IDC also argued that the cloud is entering an innovation stage that will lead to industry specific platforms. Assuming IDC's forecast is correct, IT vendors are going to have to step up their transitions from licensing and hardware sales to cloud subscriptions. It's safe to say that all vendors won't handle those curves well.
Software as a service will be about 70 percent of cloud spending in 2014 followed by infrastructure as a service. Here's the breakdown: