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Global Public Cloud Services Revenue Reached $233.4 Billion in 2019, IDC Reports

IDC’s $233.4 billion estimate is worldwide public cloud services revenue for 2019—not current spending. The tracker covers IaaS, PaaS and SaaS, with SaaS the largest segment.
From TheFinanceBase Team3 min to read
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How much did the world spend on public cloud services? International Data Corporation (IDC) estimated worldwide public cloud services revenue at $233.4 billion in 2019, up 26.0% from 2018. The figure was published in August 2020 and covers infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS)—it is not a current-year spending total.

What the $233.4 billion figure measures

The number comes from IDC’s Worldwide Semiannual Public Cloud Services Tracker. IDC reports market revenue, while the related August 30, 2020 ITPro Today archive headline uses the word “spending.” In practical terms, the estimate represents worldwide customer and provider revenue across the three public-cloud service categories in IDC’s 2019 market definition.

IDC’s announcement, dated August 18, 2020, compares the 2019 result with $185.2 billion in 2018. The 26.0% increase is therefore a year-over-year market-growth calculation, not a forecast for 2020 or a measure of today’s market.

2019 public cloud segments

IDC’s table shows SaaS as the largest segment by revenue and market share. IaaS and PaaS grew faster than SaaS during the year.

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Segment 2019 revenue 2019 market share Year-over-year growth Scope note
Infrastructure as a service (IaaS) $49.0 billion 21.0% 38.4% Public-cloud infrastructure services
Platform as a service (PaaS) $35.9 billion 15.4% 38.8% Public-cloud application-development and platform services
Software as a service (SaaS) $148.5 billion 63.6% 19.8% Includes SaaS applications and SaaS system infrastructure software

All figures in the table are IDC’s 2019 estimates and definitions. SaaS’s $148.5 billion was nearly two-thirds of the reported market, whereas IaaS and PaaS each represented smaller shares but posted growth rates above 38%.

Who published the estimate and when

The underlying market figures were published by IDC in August 2020 as part of its public-cloud tracker release. ITPro Today’s archive lists the related article as “Global Public Cloud Services Spending Tops $233.4B: Report,” by Sean Michael Kerner, dated August 30, 2020. The archive listing confirms the headline metadata but does not provide the full article text; the segment figures and comparisons should therefore be attributed to IDC’s announcement.

Provider concentration in IDC’s 2019 view

IDC said AWS, Microsoft, Salesforce, Google and Oracle together captured more than one third of worldwide public cloud services revenue and recorded 36% combined year-over-year revenue growth in 2019. That is a group-level statement. It does not establish an equal split or an individual market share for any of the five companies.

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Why the date and scope matter

It is a historical estimate

The $233.4 billion amount describes 2019 activity and was released in 2020. Later tracker editions may supersede it for current-market reporting, so the number should not be presented as 2026 spending or as a live run rate.

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It covers public cloud services, not every cloud-related cost

IDC’s scope is IaaS, PaaS and SaaS delivered through the public-cloud market definition. The total is not a general accounting of private-cloud infrastructure, every enterprise technology expense, or all forms of information-technology spending.

“Revenue” and “spending” are not interchangeable in every context

A publication may use “spending” for reader-friendly wording, but IDC’s underlying measure is provider-side market revenue. That distinction matters when comparing the figure with an organization’s internal cloud bill, a government budget, or a forecast stated in constant currency or another accounting framework.

IDC’s 2020 context

Rick Villars, IDC’s group vice president for Worldwide Research, said in the announcement: “Cloud is expanding far beyond niche e-commerce and online ad-sponsored searches. It underpins all the digital activities that individuals and enterprises depend upon as we navigate and move beyond the pandemic.” The statement belongs to the pandemic-era release context in 2020; it is not a new assessment of the market today.

What can be concluded from the figures

  • SaaS dominated the 2019 market by both revenue ($148.5 billion) and share (63.6%).
  • PaaS had the highest reported growth rate at 38.8%, narrowly ahead of IaaS at 38.4%.
  • The overall public-cloud market grew 26.0% from the $185.2 billion reported for 2018.
  • The five named providers’ combined position exceeded one third of the total, but IDC’s grouped wording cannot be used to calculate each company’s share.

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