AI must be bigger than IaaS and PaaS combined by 2025 • The Register

Analyst firm IDC has forecast that by 2025 more money will be spent on artificial intelligence software and services than on infrastructure-as-a-service and platforms-as-a-service.

The company released details of its Worldwide Semi-annual Artificial Intelligence Tracker on Wednesday, which forecast a global spend of $341.8 billion this year, representing 15.2 percent year-over-year growth.

Growth is set to accelerate to 18.8 percent by 2022, leading IDC to predict the market is on track to exceed $500 billion in annual spending by 2024.

AI software currently dominates, accounting for 88 percent of AI spending.

In the coming years, IDC expects AI hardware to grow the fastest, until AI services take over from 2023. AI services will be a $50 billion market by 2025, IDC said, with IT services likely accounting for 80 percent of spending and general business services the rest.

IDC’s definition of AI includes application software that puts it to work, AI infrastructure software, and AI-related services.

IDC ranks ghostware vendor Palantir as the revenue leader among AI platform vendors, with IBM in third place behind Microsoft. Redmond’s Beast ranks in the top three of IDC’s other AI software categories: Applications, System and Infrastructure Software, and AI Application Development and Deployment Software. IBM, which led the way in AI before deciding hybrid clouds were the future, is making just one more appearance in the System and Infrastructure Software slot.

AI system infrastructure software is projected to enjoy a five-year CAGR of 14.4 percent, while accounting for approximately 35 percent of all AI software revenue. In the AI ​​applications market, IDC says the growth of business risk management products will outperform CRM over the next five years.

AI Lifecycle Software is where you will find the most exciting action among AI Platform products.

In the public cloud, IDC has forecast that Infrastructure-as-a-Service and Platforms-as-a-Service will reach $400 billion in annual revenue by 2025, thanks to a compound annual growth rate of 28.8 percent over the next few years.

Apparently you’ve already done a lot of cloud migration and the market has shifted to app modernization – because that brings you closer to what IDC called “agile application delivery and cloud operations”.

The growth of PaaS and IaaS will also be driven by the need to scale data growth without also scaling capital expenditure.

“By 2022, IDC expects nearly half of a company’s products and services to be delivered digitally or digitally, leaving the company more reliant on infrastructure (compute, storage, networking) to support more than traditional business applications,” IDC said. . “Timely access to innovative infrastructure resources – both shared and dedicated – will be imperative to support the adaptive, resilient, secure and compatible digital business models of the future.” ®

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