Gartner: Public cloud market to reach $246bn in 2017 with IaaS and SaaS at forefront
First IDC made its forecast on the public cloud, and now Gartner has done likewise, predicting that public cloud services market will grow 18% in 2017 to total $246.8 billion (£198.1bn).
IDC’, by comparison, said global spending on public cloud services and infrastructure would reach $122.5bn by the end of this year with seven out of eight primary geographic regions to record CAGRs of more than 20% in the next five years.
Outside of ‘cloud advertising’ – “cloud-based services that support the selection, transaction and delivery of advertising and ad-related data”, according to the analysts – the largest market in 2017 will be software as a service (SaaS), in line with IDC’s predictions. SaaS will overtake BPaaS, cloud business process services this year, while infrastructure as a service (IaaS) will grow to $34bn this year.
By 2020, SaaS will be at $75.7bn, IaaS at $71.5bn, and PaaS at $56.1bn, comprising a total market of $383.3bn, Gartner adds. Growth in the infrastructure compute service space will be enhanced by artificial intelligence (AI), analytics and the Internet of Things (IoT), while the growth of PaaS will also drive the growth of IaaS.
Again, as IDC mentioned, North America is the primary market; more than half of application adoption in the continent will be SaaS or otherwise cloud-related. Gartner also focused on China at a national level, whose forecast was increased to account for anticipated higher buyer demand, saying that ‘while it was nascent and several years behind the US and European markets, it is expected to maintain high levels of growth as digital transformation becomes more mainstream over the next five years.’
“Organisations are pursuing strategies because of the multidimensional value of cloud services, including values such as agility, scalability, cost benefits, innovation and business growth,” said Sid Nag, Gartner research director. “While all external-sourcing decisions will not result in a virtually automatic move to the cloud, buyers are looking to the ‘cloud first’ in their decisions, in support of time to value impact via speed of implementation.”
You can find out more here.
Want to find out more about how artificial intelligence (AI) can affect your business? The AI Expo world series brings together brands, evangelists and start-ups to explore leading developments in the enterprise and consumer sectors. Find out more here.
Interested in hearing industry leaders discuss subjects like this and sharing their Cyber Security & Cloud use-cases? Attend the Cyber Security & Cloud Expo World Series events with upcoming shows in Silicon Valley, London and Amsterdam to learn more.
- » China cloud infrastructure services grew 67% in Q419 says Canalys – as Covid-19 response praised
- » What SMBs can do now to mitigate the economic outcomes of Covid-19
- » Waste not, want not: How enterprises can avoid an idle cloud estate
- » Lloyds Banking Group signs up to Google Cloud in five-year partnership
- » IDC finds how organisations investing in cloud-based quantum computing seek to gain competitive edge