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In 2020, the cloud and dedicated infrastructure segment of the market accounted for almost ** percent of spending. Over the forecast period, a general trend of enterprises spending more on cloud and shared infrastructure at the expense of non-cloud and dedicated portion of the market is predicted.

Rise of cloud affects consumption models for hardware and software

By 2025, the non-cloud and dedicated segment of the market is projected to decrease to around ** percent of spending. This is due to the increase of the utility computing model in which computing services and infrastructure management are made available to the customer as needed. This model propagates the notion that several aspects of enterprise IT, including applications and network, can be consumed as a service. Due to its cost-effectiveness and innovative properties, organizations continue to shift to this model as opposed to traditional host computing.

Cloud and shared forecast to grow continuously

The cloud and shared architecture, which can be considered the public cloud, is expected to reach almost ** percent of spending by 2025. Public cloud usage becomes more common as cloud security matures and organizations become more acquainted with its benefits, including better scalability, faster time of deployment, and cost savings. Accordingly, the public cloud services market size is forecast to amount to almost *** billion U.S. dollars in 2021.