Story image

Public cloud set to be a US$214b market by year’s end

02 Apr 2019

The global public cloud market has undergone sweeping growth since its inception, and it looks set to remain that way for the foreseeable future.

According to new data from Gartner, the global public services market is forecast to grow 17.5 percent this year to reach US$214.3 billion, up from $182.4b in 2018.

The fastest-growing market segment will be cloud system infrastructure services – or infrastructure as a service (IaaS) – which is forecast to grow 27.5 percent in 2019 to reach $38.9 billion, up from $30.5 billion in 2018.

Nipping on its heels will be cloud application infrastructure services – or platform-as-a-service (PaaS) – with a growth rate of 21.8 percent.

“Cloud services are definitely shaking up the industry,” says Gartner research vice president Sid Nag.

“At Gartner, we know of no vendor or service provider today whose business model offerings and revenue growth are not influenced by the increasing adoption of cloud-first strategies in organizations. What we see now is only the beginning, though. Through 2022, Gartner projects the market size and growth of the cloud services industry at nearly three times the growth of overall IT services.”

According to Gartner, the company has conducted a series of recent surveys that have revealed more than a third of organizations see cloud investments among their top three investment priorities, which of course is having an impact on market offerings.

Gartner expects that by the end of 2019, more than 30 percent of technology providers’ new software investments will shift from cloud-first to cloud-only. This means that license-based software consumption will further plummet, while SaaS and subscription-based cloud consumption models continue their rise.

“Organizations need cloud-related services to get boarded onto public clouds and to transform their operations as they adopt public cloud services,” says Nag.

At the moment, around 19 percent of cloud budgets are allocated to cloud-related services like cloud consulting, implementation, migration, and managed services, and Gartner expects this to increase to 28 percent by 2022.

“As cloud continues to become mainstream within most organizations, technology product managers for cloud related service offerings will need to focus on delivering solutions that combine experience and execution with hyperscale providers’ offerings,” says Nag.

“This complementary approach will drive both transformation and optimization of an organization’s infrastructure and operations.”

Huawei FusionServer Pro built for 'intelligent transformation'
The next generation X86 servers draw on an intelligent acceleration engine, an intelligent management ending, and intelligent data center solutions for ‘diverse’ scenarios as transformation shifts from digital to intelligent.
HFW deploys digital edge strategy on Equinix
Equinix announced that global law firm HFW has collaborated with Equinix to build out its digital edge in key markets including Dubai, London, Hong Kong, Melbourne and Paris.
DE-CIX and Datacenter One sign service deal for Germany
Datacenter One’s LEV1 data centre in Leverkusen is the first to be connected to DE-CIX, with further DE-CIX sites to be created in the next few years as part of the agreement.
Teradata expands as-a-service offerings for Advantage platform
Data intelligence company Teradata has announced three new cloud and on-premise solutions that are now integrated into its Teradata Vantage platform.
DigiPlex opens up Nordic data centers to international customers
"The Nordics are Europe's premier market: a firm deploying 100 megawatts over 20 years could save approximately $2 billion by placing their data center in Sweden or Norway versus the U.K."
HPE & Nutanix join forces to deliver hybrid cloud as a service
The two tech giants have partnered to offer a fully integrated solution that capitalises on the hybrid IT market.
Opinion: The growing importance of sustainability in data centres
Aruba's Alessandro Bruschini discusses why to carry on growing, the data centre industry will have to turn to green methods of energy consumption and production.
Equinix releases Azure Stack-as-a-Service in APAC
The hybrid cloud solution offers pre-configured, Microsoft validated systems, pre-installed into Equinix IBX data centres.