Public cloud spending is expected to rise at a strong compound annual growth rate (CAGR) of 19 per cent by 2026, growing from $75 billion (£60 billion) in 2015 to $522 billion by 2026, according to a new survey conducted by North Bridge and Wikibon.
The survey found that within each public cloud segment, continued rapid growth rates are also expected during this period, with Software as a Service (SaaS) expected to grow at a 19 per cent CAGR, Platform as a Service (PaaS) growing at a 33 per cent CAGR, and Infrastructure as a Service (IaaS) predicted to grow at a CAGR of 18 per cent.
Research analysts Wikibon estimate that by 2026, the cloud will account for nearly half of spending related to enterprise hardware, software and outsourcing services.
The survey found that while slightly less than 50 per cent of all companies either have a cloud first or cloud only strategy, some form of cloud strategy is used by 90 per cent of businesses.
It was found that 42 per cent of companies surveyed derive 50 per cent or more of their business through cloud-based applications. In fact, 79.9 per cent of the companies surveyed were getting some revenue from the cloud.
A total of 28 per cent of companies surveyed said that they store 50 per cent or more of their data in a public cloud, compared to 59 per cent of companies who said they store 50 per cent or more of their data in a private cloud.
Holly Maloney McConnell, principal at North Bridge, said: “Cloud environments will remain predominantly hybrid in the coming years, enhancing the importance of a clearly defined cloud governance and orchestration strategy to optimise for security, self-service and agility, while minimising costs.
"The continued growth in the cloud-first enterprise is forcing traditional IT vendors like Oracle to accelerate pace of acquisition to fortify their cloud platform strategies.”