Technology advancements have significantly improved almost every sector, including banking, financials, communication, transportation, healthcare, education, and entertainment. IDC projects that the performance intensive computing as a service (PICaaS) market to grow from $22.3 billion in 2021 to $103.1 billion in 2027 with a CAGR of 27.9% over the 2022-2027 forecast period.
IDC recognizes the PICaaS as a fast-developing category of public cloud service offerings, with end users leveraging the advantages of unique cloud technology to run mathematically intensive computations.
Mathematically intensive computations are typically found in AI, high-performance computing (HPC), Big Data and analytics (BDA), and engineering/technical use cases.
Public cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) have expanded their offerings beyond storage and computing services. They now offer various AI-enabled services, including analytics, machine learning, the Internet of Things (IoT), serverless computing, and more.
The ratio that the PICaaS market represents of the total $241.3 billion as-a-service market for 2022 is 12.5%. The PICaaS market includes 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 stay the dominant contributor to the overall market throughout the forecast period, followed by AI as a service. On the other hand, 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 is going mainstream and is increasingly viewed as mission-critical.
- A growing number of enterprises identify themselves as digital businesses.
But the market is also hampered by several inhibitors:
- Sophistication in managing hybrid technologies and lack of HPC talent within enterprises
- Transferring PIC workloads from the public cloud back into dedicated IT infrastructure.
- Disrupted IT spending plans (due to supply chain issues, labor shortages, economic slowdown, and geopolitical tensions)
IDC suggests that suppliers:
- Formulate an end-to-end bundled performance-intensive computing as a service product offering.
- Demonstrate a secure and compliant cloud infrastructure.
- Segment opportunities by their level of enterprise intelligence and communicate on early vendor engagement opportunities and cost transparency.
- Align units with performance-intensive computing capabilities and demonstrate proficiency in evolving roles such as chief data officer.
- Be a trusted consultant of hybrid deployment models for performance-intensive computing workloads, offer multi-cloud support, and showcase a robust partner ecosystem.
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