Worldwide spending on public cloud services will grow at a 19% compound annual growth rate (CAGR)—nearly six times the rate of overall IT spending growth—from nearly $70 billion in 2015 to more than $141 billion in 2019, according to new research from International Data Corporation (IDC).

Software as a service (SaaS) will remain the dominant cloud computing offering, with more than two thirds of all public cloud spending through most of the forecast period, IDC says. Worldwide spending on infrastructure as a service (IaaS) and platform as a service (PaaS) will grow at a faster rate than SaaS, with five-year growth rates of 27% and 31%, respectively.

"Over the past several years, the software industry has been shifting to a cloud-first (SaaS) development and deployment model,” Frank Gens, senior vice president and chief analyst at IDC, said. “By 2018, most software vendors will have fully shifted to a SaaS/PaaS code base. This means that many enterprise software customers, as they reach their next major software upgrade decisions, will be offered SaaS as the preferred option.”

Put together, new solutions born on the cloud and traditional solutions migrating to the cloud will steadily pull more customers and their data to the cloud. Gens said.

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