Enterprises are adopting public cloud faster than expected, and that’s causing cloud spending to increase dramatically, according to a study from Wikibon. Because of this acceleration, many public cloud companies are seeing a rapid increase in their revenues.
According to Wikibon, which is a community of researchers and consultants, companies like Amazon, Microsoft, Oracle, SAP, and IBM are benefiting from this trend. Wikibon expects cloud revenues to grow from $75 billion in 2015 to $522 billion by 2026. In fact, the firm estimates that by 2026 cloud will account for nearly 50 percent of spending related to enterprise hardware, software, and outsourcing services.
Plus, non-tech vendors are expanding their digital product lines so that they are cloud-first. An example of this is GE’s Predix IoT platform, which is a platform-as-a-service that was created for GE’s Internet of Things (IoT) applications but is now being marketed to other companies.
Amazon has certainly seen its cloud revenues increase. At the end of first quarter, Amazon reported AWS sales reached $2.6 billion in the first quarter, which ended March 31. That’s up from $1.6 billion for the same quarter in 2015.
Wikibon’s findings are very similar to a recent study released by cloud control company, HyTrust. In that study, HyTrust found that 74 percent of organizations said they plan to move more systems to the public cloud this year.
In addition, HyTrust found that most organizations have already decided which platforms to use, with Microsoft Azure being the most popular at 32 percent. This platform is closely followed by VWware’s vCloud Air at 24 percent, and Amazon Web Services (AWS) at 22 percent.