The United States is set to become the largest market for public cloud services, assuming over 60% of global public cloud services, according to a new report from IDC. In addition, total worldwide spending is projected to reach $266 billion by 2021, with $163 billion accounted for by the US, the report said.

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“Professional services, banking, and telecommunications are the three fastest growing industries worldwide over the forecast period,” Eileen Smith, program director of Customer Insights and Analysis, said in a press release.

Software as a Service (SaaS), composed of system infrastructure software (SIS) and applications, will continue as the leading mode of cloud computing. SaaS encompasses nearly two thirds of all public cloud spending in 2017 and is projected to capture nearly 60% by 2021, the report stated.

Over half of public cloud spending comes from big businesses with more than 1,000 employees, according to the report. Within such business, most of the public cloud services are channeled towards new projects in sectors like sales and customer service, Eileen Smith added.

The report highlighted that over 60% of cloud applications spending will be dedicated to customer relationship management (CRM) and enterprise resource management (ERM). These applications are predicted to dominate SaaS spending over the next five years, setting the tone for the future of public cloud spending.

TechRepublic’s Hope Reese noted that with the increase in cloud spending comes an increase in concern about cloud security. In fact, “Forrester predicts a spike in cloud security spending over the next five years,” Forrester analyst Jennifer Adams wrote in a blog post about cloud security spending, “monitoring data across multiple cloud platforms and products simultaneously is a challenge, as is cross-platform security.”

IDC’s Worldwide Semiannual Public Cloud Services Spending Guide calculates public cloud purchases for 20 industries across 47 countries and five company sizes, the report said. The detailed spending guide was created for the purpose of helping IT professionals clearly interpret where funds going towards public cloud are being spent on an industry-specific level and where they will be spent over the next five years, the press release stated.

The 3 big takeaways for TechRepublic readers

  1. According to a recent IDC report, total worldwide spending on cloud services will reach $266 billion by 2021.
  2. Software as a Service (SaaS) is the dominant mode of cloud computing and will continue to grow, consuming nearly 60% of cloud spending by 2021.
  3. The increase in cloud spending could present more opportunities to cyber hackers to attack, which means organizations will increase spending in cybersecurity to keep public cloud computing safe.

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