NEEDHAM, Mass .– (BUSINESS WIRE) – The global market for public cloud services, including infrastructure as a service (IaaS), system infrastructure software as a service (SISaaS), platform as a service (PaaS) and software as a service (SaaS), grew 24.1% per year year on year in 2020 with revenues totaling $ 312 billion, according to the International Data Corporation (IDC) Global Public Cloud Services Semi-Annual Tracking.

Spending continued to consolidate in 2020, with the combined revenues of the top 5 public cloud service providers (Amazon Web Services, Microsoft, Salesforce.com, Google and Oracle) capturing 38% of the global total and increasing by 32% from year after year. Thanks to a growing portfolio of SaaS and SISaaS offerings, Microsoft now shares first place with Amazon Web Services in the overall public cloud services market, with the two companies holding 12.8% revenue share for the year .

“Access to infrastructure, data and shared application resources in public clouds has played a critical role in helping organizations and individuals overcome the disruptions of the past year,” said Rick villars, Group Vice President, Global Research at IDC. “In the years to come, the ability of businesses to manage a growing portfolio of cloud services will be the foundation for introducing greater automation into business and IT processes while becoming more digitally resilient.

While the overall public cloud services market grew by 24.1% in 2020, as in the past four years, the IaaS and PaaS segments have consistently grown at much faster rates. This highlights the growing reliance of businesses on a cloud-based foundation of cloud infrastructure, software-defined data, compute and governance-as-a-service solutions, and cloud-native platforms for deploying applications for the company’s internal computer applications. IDC expects spending on core cloud services (especially IaaS and PaaS) to continue to grow at a higher rate than the overall cloud market, as resiliency, flexibility and agility drive decisions relating to IT platforms.

“Cloud service providers are rapidly expanding their portfolio of infrastructure and platform services to address confidential computing, performance-intensive computing and hybrid deployment scenarios,” said Dave mccarthy, Vice President, Cloud and Edge Infrastructure Services. “Extending these core cloud services to customer premises and communications networks enables a broader set of use cases than ever before.”

“The high growth rate of PaaS, IaaS and SISaaS, which together account for about half of the public cloud services market, reflects the demand for solutions that accelerate and automate the development and delivery of modern applications,” said Lara greden, Research Director, Platform as a Service. “As organizations adopt DevOps approaches and align with value streams, we are seeing that PaaS, IaaS and SISaaS solutions are increasingly adopted and, at the same time, expand across the range of services and therefore the value they provide. use cases also help accelerate growth rates in these markets. ”

“SaaS applications are the largest and most mature segment of the public cloud with revenue of $ 148 billion in 2020. Organizations across industries have accelerated the replacement of old business applications with a new generation of SaaS applications that are data-driven, intuitive, composable and ideally suited for more distributed cloud architectures. Organizations looking for industry-specific applications can choose from a growing assortment of vertical applications. The SaaS application market is dominated by a long list of vendors who account for 65% of the total market, ”said Frank della rosa, Director of Research, SaaS and Cloud Software.

Global Public Cloud Services Revenue and Year-Over-Year Growth, Calendar Year 2020 (revenues in billions of US dollars)
Segment	2020 Returned	Market Share	2019 Returned	Market Share	From one year to another Growth of the year
IaaS	$ 67.2	21.5%	$ 50.2	19.9%	33.9%
SaaS – System infrastructure software	$ 49.2	15.7%	$ 40.2	16.0%	22.4%
PaaS	$ 47.6	15.2%	$ 36.1	14.4%	31.8%
SaaS – Applications	$ 148.4	47.5%	$ 125.2	49.7%	18.6%
Total	$ 312.4	100%	$ 251.7	100%	24.1%
Source: IDC Worldwide Public Cloud Services Tracker biannual, 2H20

Looking at the segment results, a combined view of IaaS, SISaaS, and PaaS spend is relevant as it represents the core set of services that end customers and SaaS businesses consume during execution, modernization, creation and governance of applications on shared public clouds. In the combined IaaS, SISaaS and PaaS market, the top 5 companies (Amazon Web Services, Microsoft, Google, Alibaba and IBM) captured more than 51% of global revenue. But there is still a healthy long tail, accounting for almost half of the total market. These are companies offering specific PaaS services for targeted use cases or compute, data or inter-cloud network governance services. The long tail is even more pronounced in SaaS, where increasing customer focus on specific outcomes ensures that more than two-thirds of spend is captured outside of the top 5.

A chart illustrating the 2020 revenue share of the top 5 companies in the IaaS + SISaaS + PaaS and SaaS segments of the global public cloud services market is available by viewing this press release on IDC.com.

IDC Global Public Cloud Services Semi-Annual Tracking provides total market size and vendor share for more than seventy segments of the global public cloud services market. The measure of this Tracker is revenue from public cloud services, which includes subscription revenue to Infrastructure as a Service (IaaS), System Infrastructure Software as a Service (SISaaS), Platform as a Service (PaaS) and Software as a Service (SaaS). The Tracker exhibits 500 cloud service companies in a total of 49 countries. The five-year annual market forecasts for this Tracker are updated semi-annually and include five-year annual market projections. Forecasts are available at global, regional and national levels.

For more information on IDCs Global Public Cloud Services Semi-Annual Tracking, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

Click here to learn more about IDC’s full line of data products and how you can use them to grow your business.

About IDC

International Data Corporation (IDC) is the world’s leading provider of business information, advisory services and events for the information technology, telecommunications and consumer technology markets. With more than 1,100 analysts worldwide, IDC provides global, regional and local expertise on technology and industry opportunities and trends in more than 110 countries. IDC’s analysis and insight helps IT professionals, business leaders and the investment community make fact-based technology decisions and achieve their core business goals. Founded in 1964, IDC is a 100% subsidiary of International Data Group (IDG), a global leader in technology media, data and marketing services. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry insights and insights: http://bit.ly/IDCBlog_Subscribe.