Public spending on cloud services is expected to reach about $219.3 billion by 2027, with on-prem/other investments accounting for another 30%, according to IDC’s Worldwide Software and Public Cloud Services Spending Guide.
The report highlighted that the Asia/Pacific region is experiencing a double-headed IT spending boom, with public cloud services and software investments skyrocketing with a compounded annual growth of 14.2% by 2027 for the next 5 years.
“This growth defies global uncertainty threats, highlighting the region’s strategic focus on digital transformation and technological innovation,” the report said.
Today businesses invest in cloud-based software, data analytics tools, and AI platforms to optimize operations, enhance customer experiences, and gain valuable insights. The demand for data analytics, cybersecurity, and AI solutions further drives cloud adoption.
While the cloud’s popularity is rising in Asia/Pacific, some businesses remain hesitant due to data security, network limitations, a lack of internal expertise, a desire for control, and upfront costs, the report noted.
The IDC Worldwide Software and Public Cloud Services Spending Guide quantifies public cloud computing purchases by cloud type for 28 industries and five company sizes across eight regions and 47 countries.
