IDC: Apps will drive public cloud spending to sustained double-digit growth

The US accounted for 68 percent of the public cloud market in 2013

Global spending on public cloud services reached US$45.7 billion last year and will experience a 23 percent compound annual growth rate through 2018, according to analyst firm IDC.

Some 86 percent of the 2013 total came from cloud software, which encompasses both SaaS (software as a service) applications and PaaS (platform as a service) offerings, with the remaining 14 percent generated by cloud infrastructure, IDC said Monday.

ERM (enterprise resource management) application software accounted for $10.8 billion in public cloud revenue last year, followed by CRM (customer relationship management) products with $8.1 billion, according to IDC. Server and collaboration software came next with about $4 billion and $3.4 billion, respectively, with the remainder of the total spread over security and other markets, IDC said.

Salesforce.com and ADP are the two largest SaaS vendors, followed by Intuit, Oracle and Microsoft, according to IDC's survey. That conclusion is in contrast with Oracle's recent claim to have become the industry's second-largest SaaS company.

ADP has long offered hosted services for payroll and other human resources functions. It generated more than $11 billion in revenue during its last fiscal year, and in 2011 made a big push into HCM (human capital management) with Vantage, a cloud-based suite.

An Oracle spokeswoman declined to comment on IDC's ranking.

Meanwhile, IDC ranked Amazon.com first in the PaaS market, with Salesforce.com and Microsoft tied for second place, followed by GXS and Google.

Amazon was also No. 1 in the infrastructure category, followed by Rackspace, IBM, CenturyLink and Microsoft.

Geographically, the U.S. accounts for 68 percent of the overall public cloud market, but this figure will fall to 59 percent by 2018 as Western Europe's take rises from 19 percent to 23 percent and growth picks up in emerging markets, IDC said.

While customer appetite for cloud software is one reason for the market's strong growth, another is simply the fact that traditionally on-premises vendors such as Oracle and SAP have now managed to build out broad SaaS portfolios to offer their customers. Cloud services account for relatively little of those companies' overall revenue right now, but that is sure to change over time.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags cloud computinginternetOracleIBMsoftwareapplicationsIDCSAPIntuitrackspaceInternet-based applications and servicesADPCenturyLinkGXS

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?