IDC's First Forecast for the Performance Intensive Computing as a Service Market Shows Worldwide Revenue Reaching $103 Billion in 2027

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• Michael Shirer  Email: press@idc.com  Phone number: 508-935-4200

NEEDHAM, Mass., April 4, 2023 – International Data Corporation (IDC) has published its first-ever forecast for the performance intensive computing as a service (PICaaS) market. IDC projects that the total worldwide PICaaS market will grow from $22.3 billion in 2021 to $103.1 billion in 2027 with a compound annual growth rate (CAGR) or 27.9% over the 2022-2027 forecast period.

IDC recognizes the performance-intensive computing as a service market as a fast-developing category of the public cloud services offerings with end users leveraging the advantages of special cloud technology to run mathematically intensive computations. Mathematically intensive computations are typically found in artificial intelligence (AI), high-performance computing (HPC), Big Data and analytics (BDA), and engineering/technical use cases.

The percentage that the PICaaS market represents of the total $241.3 billion as-a-service market for 2022 is 12.5%. The PICaaS market encompasses revenue generated by cloud service providers for compute, storage, and software offerings within their infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) portfolio for AI, BDA, HPC, and engineering/technical workloads.

The BDA as a service market segment will remain the predominant contributor to the overall market throughout the forecast period, followed by AI as a service. The HPC-as-a-service market segment shows the highest growth rate, followed by AI, and then engineering/technical workloads.

Drivers for the market growth, according to IDC, are:

• Performance-intensive computing goes mainstream and is increasingly considered mission critical
• A growing number of enterprises identify themselves as digital businesses

But the market is also hampered by several inhibitors:

• Complexity in managing hybrid technologies and lack of HPC talent within enterprises
• Transferring of PIC workloads from the public cloud back into dedicated IT environments
• Disrupted IT spending plans (due to supply chain issues, labor shortages, economic slowdown, and geopolitical tensions)

IDC recommends that suppliers:

• Formulate an end-to-end bundled performance-intensive computing as a service product offering
• Demonstrate a secure and compliant cloud infrastructure
• Segment prospects by their level of enterprise intelligence and communicate on early vendor engagement opportunities and cost transparency
• Align teams with performance-intensive computing capabilities and demonstrate abilities to work with evolving roles such as chief data officer
• Be a trusted advisor of hybrid deployment models for performance-intensive computing workloads, offer multicloud support, and showcase a strong partner ecosystem

"IDC is projecting significant growth in the performance-intensive computing as a service market, which measures the revenue that providers generate from offering compute instances, storage, and software for Big Data and analytics, AI, HPC, and engineering/technical workloads," said Madhumitha Sathish, research manager, Performance Intensive Computing as a Service, at IDC. "These workloads all demand more advanced technologies, and cloud service providers are investing heavily to capture market share in a market that will grow to $103.1 billion by 2027."

The IDC report, Worldwide Performance-Intensive Computing as a Service Forecast, 2023–2027: Strong Growth for Big Data Analytics, AI, HPC, and Engineering/Technical Workloads (Doc #US50507923), provides IDC's first-ever forecast for the performance-intensive computing as a service (PICaaS) market. The report includes worldwide PICaaS revenue for the 2022-2027 forecast period by segment as well as by percentage of overall as-a-service spending. The forecast includes public cloud, shared tenancy revenue only; IDC plans to size the market for PIC in dedicated cloud in the foreseeable future.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

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