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Enterprises must embrace public cloud and tap into suppliers’ latest innovations to maintain their competitive edge, according to IDC.
This comes as the analyst firm forecasts that public cloud will make up almost half (48%) of cloud spending – which includes private, public, hybrid and managed infrastructure – by 2021, marking a 7% increase on estimates from 2016.
Additionally, IDC said public cloud spend that includes the sales from the hardware and software needed to power the cloud services will reach 68% in 2021 .
Frank Jens, senior vice-president and chief analyst at IDC, said future revenue growth will be driven by the innovation of suppliers, and enterprises must consider making the move off-premise to remain competitive.
“The shift to the cloud consumption model, in all its forms, is a mass movement, and will continue to be such over the forecast period,” he said.
“Equally important, though, is the steady drumbeat of tech innovation that is coming from the major public cloud suppliers, making it virtually impossible for enterprises and developers seeking advantage through IT not to embrace the public cloud.”
The pace of innovation demonstrated by the big public cloud providers, namely Amazon Web Services (AWS), Microsoft and Google, if often cited by analysts as an important point of competitive difference when comparing their offerings to those offered by legacy IT providers.
At the recent AWS Re:Invent conference in Las Vegas, the cloud giant revealed the company is bringing around 3.5 new “significant features and services” to market every day.
Examples of areas where the suppliers are building out their capabilities include blockchain, which records digital transactions between two parties, as well as artificial intelligence (AI) and serverless computing.
IDC is also predicting that the whole cloud revenue will reach $554bn in the next four years, more than double the 2016 figure.
It expects the workloads on the cloud to continue to expand and, even though there are still concerns about supplier lock-in and security, cloud will continue to be key for companies in the future.
The market-watcher also forecasts that the hardware and software by cloud providers will make up 76% of the spending, although the amount on managed cloud services will stay at 31% by 2021.