Published on November 8, 2023, 11:24 pm

The total worldwide market for performance-intensive computing as a service (PICaaS) is projected to experience significant growth, according to market research firm IDC. The market is expected to expand from US$22.3 billion in 2021 to reach US$103.1 billion by 2027, with a compound annual growth rate (CAGR) of 27.9% over the forecast period of 2022-2027.

IDC identifies performance-intensive computing as a service as a rapidly developing category within the public cloud services offerings. This category allows end users to leverage specialized cloud technology for running mathematically intensive computations. These computations are commonly found in areas such as artificial intelligence (AI), high-performance computing (HPC), big data and analytics (BDA), and engineering/technical use cases.

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

Among the different segments of the PICaaS market, BDA as a service is expected to be the dominant contributor throughout the forecast period. It will be followed by AI as a service. In terms of growth rate, the HPC-as-a-service segment demonstrates the highest growth rate, followed by AI and then engineering/technical workloads.

There are several drivers contributing to the anticipated growth of this market:

1. Performance-intensive computing is becoming increasingly essential and mission-critical.
2. A growing number of enterprises recognize themselves as digital businesses.

However, certain inhibitors may hinder market growth:

1. Complexity in managing hybrid technologies and a lack of HPC talent within enterprises.
2. The challenge of transferring PIC workloads from the public cloud back into dedicated IT environments.
3. Disruptions in IT spending plans due to supply chain issues, labor shortages, economic slowdowns, and geopolitical tensions.

In light of these market dynamics, IDC offers recommendations for suppliers to capitalize on the growth opportunities:

1. Formulate an end-to-end bundled performance-intensive computing as a service product offering.
2. Demonstrate a secure and compliant cloud infrastructure.
3. Segment prospects based on their level of enterprise intelligence and communicate early vendor engagement opportunities and cost transparency.
4. Align teams with performance-intensive computing capabilities and display abilities to work with evolving roles such as chief data officer.
5. Establish trust as an advisor in hybrid deployment models for performance-intensive computing workloads, offer multi-cloud support, and showcase a strong partner ecosystem.

Madhumitha Sathish, research manager for performance-intensive computing-as-a-service at IDC, emphasizes the significance of this market by stating, “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 US$103.1 billion by 2027.”

For more information on the drivers, inhibitors, and recommendations regarding PICaaS in 2023 and beyond, please visit FutureCIO.

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– Image source: [Madhumitha Sathish](


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