Infrastructure as a service cloud computing revenue to surge by 2020

Special Feature

Cloud Computing: Moving to IaaS

Infrastructure as a Service providers make a very compelling argument for businesses to stop running their own data centers and simply purchase server capacity on-demand and scale up and down as needed. This is our deep dive on IaaS strategy and best practices

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Infrastructure as a service (IaaS) cloud revenue is expected to triple to $43.6 billion by 2020, up from $12.6 billion in 2015, according to research firm IDC.

The projection, which equates to a compound annual growth rate of 28.2 percent over five years, is based on the number of enterprises ditching on-premises hardware for the public cloud.

IDC said a survey of more than 6,000 IT organizations found two-thirds are using or planning to use IaaS. IDC noted that "public cloud IaaS is slowly transforming the enterprise IT value chain".

In 2015, IDC said the IaaS market grew 51 percent and there would be a 41-percent growth through 2016 and 2017.

Other key points:

• 80 percent of IT organizations will commit to hybrid architectures by 2018.
• Regional public cloud providers will emerge based on OpenStack. These providers will be local and demand will be driven by regulatory and data sovereignty concerns.
• Amazon Web Services is the leader of the IaaS market, and 56 percent of the revenue pie goes to the top 10 IaaS vendors.