60% of enterprises using or planning to use public IaaS by the end of 2016, IDC

IDC’s IaaS forecast is out, tragically, I don’t have access to it. However, here’s some highlights from the press release:

  • Public IaaS is in wide use “A recent survey of over 6,000 IT organizations found that nearly two thirds of the respondents are either already using or planning to use public cloud IaaS by the end of 2016.”
  • Public IaaS is a large, fast growing market – the overall IaaS market is forecast to grow from $12.6bn in 2015 to $43.6bn in 2020, a CAGR of 28.2%.
  • Yup, fast growing – growth from 2014 to 2015 was 51%
  • People use more than one IaaS, and probably “cloud” – “[H]ybrid cloud infrastructure is already a common pattern at several large enterprises and IDC predicts that 80% of IT organizations will be committed to hybrid architectures by 2018″ – notice they say “large enterprises,” which suggests a cut of the data by company size: last I recall, IDC defined “large enterprise” as 2,500+ people, which may or may not be the case here.
  • A few cloud providers dominate – Amazon is still king, and there’s an fat-head of marketshare: “In 2015, 56% of the revenue and 59% of the absolute growth went to the top 10 IaaS vendors.”

Contrast that 60% IaaS usage with the 45% use in a recent Morgan Stanley CIO survey. I don’t think that’s a huge difference, but it does show the fiddliness of these kinds of surveys. To be fair, the Morgan Stanley survey has public IaaS usage at ~90% by 2019. I’d trust IDC a lot more, esp. with 6,000 surveyed vs. 100.

Also, while I can’t verify this: I’d assume this public IaaS is not to the exclusion of private cloud/on-premises. To be sure, some, or even much, of it must be public cloud gobbling up on-premises usage and revenue. However, I wouldn’t take it as a zero-sum game between the two.

Source: Enterprise Adoption Driving Strong Growth of Public Cloud Infrastructure as a Service, According to IDC – prUS41599716

IDC: Industry-specific solutions to drive public cloud computing

“IDC predicts the cloud computing market to reach about $70 billion this year and the number of new cloud-based solutions to triple within the next four to five years….the biggest cloud computing verticals worldwide will be discrete manufacturing, banking, professional services, process manufacturing, and retail. IDC expects the five verticals to represent 45 percent of the market’s total spend.”

IDC: Industry-specific solutions to drive public cloud computing

Currency markets screwing up global IT spending

At first they was like:

The re-forecast indicates global expenditure will shrink 1.3 per cent on 2014 to $3.66tn, which is way off last year’s prediction of 3.9 per cent growth, later revised to a more modest rise of 2.4 per cent in January.

Then they was like:

Removing the currency effect [of the “strong dollar”] reveals a different story Lovelock said: the market would be growing closer to 3.1 per cent.

Yeah. Good luck figuring that out. So, people are still buying more IT globally, right?

Currency markets screwing up global IT spending

US SMB Spending

“Spending on information technology by the almost 6.5 million small and medium-sized businesses [1-999 employees] in the United States will approach $161.1 billion in 2015, accounting for over one-quarter of overall global SMB IT spending”

Details on spending totals are provided for key hardware, software, and services technology areas: PCs and peripherals, systems and storage, telecommunications equipment, packaged software, and IT services.

From IDC

Tech companies planning on M&A

According to 451 Research, more than half of corporate acquirers (58%) indicated that they expected their own company to pick up the pace of deal making in 2015. That was the highest forecast by strategic buyers in the tech M&A marketplace in a half-decade. Likewise, tech investment bankers are bullish for this year, with M&A pipelines fuller than they’ve been in years. More than three-quarters (77%) of investment banking survey respondents indicated that the aggregate value of tech transactions they are currently working on is higher than it was a year ago. That stood as the second-highest assessment in the past half-dozen years of the 451 Research Survey.

From the M&A team at 451.

Tech companies planning on M&A