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Market projections for 2021 and beyond

Kick off the week with some perspectives on market sizes.

Global cloud spending will surpass $1Trillion in 2024, and sustain double-digit compound annual growth at a rate of 15.7%, per IDC.      Strongest growth will be in the as-a-service category, which is public and private cloud services, and specifically will grow at a CAGR of 21%, and account for more than 60 percent of all cloud revenues by 2024.

Also from IDC, while this year the IT and business services sector will shrink 2.3 percent, the company is expecting a 1.9 percent growth rate next year. 

And from Forrester, US spending on tech will decrease by 1.5 percent in 2021 – and the spending will be focused on cloud, security, networks, and mobile, and remote work is expected to increase 300 percent compared with pre-pandemic.

Markets and Markets is projecting a compound annual growth rate of 8% from 2020 to 2025 for the global managed security services market.  

Why do we care?

Surprise, it’s what you expected!   Cloud, security, network, remote work – or digital parity, all measured by business outcomes.

It’s a bit predictable.    That’s not a bad thing.   

Let’s note a discrepancy – IDC is clearly more optimistic than Forrester, with IDC saying things will grow and Forrester saying they will shrink.   I’ll place my bet on Forrester here – and the reason is that I think the waters will be choppy longer that most believe they will.      Project out to 2024 and 2025 and things will be recovered, but I think 2021 will be rougher financially, and am planning accordingly.

Source: Redmond Channel Partner

Source: MSSP Alert