According to a new study from market intelligence experts from IDC, IaaS revenue is expected to rise from $12.6 to $43 billion in 2020. They predict a compound annual growth rate of 28.2% over the five-year period.
Infrastructure as a service (IaaS) is a key pillar of Microsoft´s Azure cloud strategy, so this is definitely good news for the company. Microsoft already offers various IaaS solutions via Azure and is investing heavily to position itself as the leading provider. But with Amazon, Google, IBM and Rackspace the company faces strong competitors that are all investing billions to win this race.
IDC reports that in 2015, 56% of the revenue and 59% of the absolute growth went to the top ten vendors, led by this group of competitors. Amazon Web Services (AWS) came out on top once again.
In 2015 the public cloud IaaS market grew by 51%, and this will continue over the next two years. Over this period, a compound annual growth rate of 41% is expected. IDC predicts growth will then slow due to the switch from implementation to optimization.
The current and most efficient method of integration is the creation of hybrid architectures. These combine existing IT infrastructure with new cloud services. According to IDC, around 80% of IT organizations will commit to these by 2018.