If anyone has any doubts about the level of uptake of cloud services across the business sector the figures contained in the most recent Gartner survey of the cloud services worldwide will put the argument to bed. Among the figures that stand out is that the market is predicted to grow by close to 20 percent worldwide by the end of year.
Cloud Services Worth US$ 109 billion
Gartner regularly publishes updates to its research reports to take into account changing trends. In this update, it says that despite major economic problems in one of the big cloud consumers regions —Europe — and signs that the Chinese economic edifice is shaky, spending on cloud computing services is staggering.
Contained in Gartner’s "Public Cloud Services, Worldwide, 2011-2016, 2Q12 Update," the figures show that by the end of this year alone, the cloud services market will be worth US$ 109 billion after growing by 19.6 percent.
By 2016 this figure will rise to US$ 206.6 billion, with both IaaS and cloud management/security services growing substantially.
Cloud Services Market
Breaking the figures down even further, in the public cloud services space, Business Process-as-a-Service (BPaaS) is by far the biggest segment with 77 percent of the market, showing that it is business adoption that is really pushing the cloud. Infrastructure-as-a-Service (IaaS) is the segment that is currently growing the quickest and likely will continue to do so with an estimated growth figure of 45.2 percent in 2012 alone.
But it’s not enough to be aware that cloud services are booming, Gartner says, you really have to understand what is going on at a very basic level.
The cloud services market is clearly a high-growth sector within the overall IT marketplace … The key to taking advantage of this growth will be understanding the nuances of the opportunity within service segments and geographic regions, and then prioritizing investments in line with the opportunities,” said Ed Anderson, research director at Gartner.
So what does all that mean? The market looks like this:
BPaaS is the biggest segment principally because of the inclusion of cloud advertising which is pushing up to figures unimagined even two years ago. BPaaS for this year alone will be worth US$ 84.2 billion from US$ 72 billion in 2011.
Cloud advertising made up about 47 percent of the total public cloud services spend, making it by far the biggest (sub)segment in the market (remember it falls under BPaaS).
And between now and 2016, this is not going to change; cloud advertising will continue to account for 47 percent of the spend.
After BPaaS, SaaS is the next biggest market segment, and is expected to grow to US$ 14.4 billion by the end of the year, with IaaS expected to be worth US$ 6.2 billion, up from US$ 4.3 billion in 2012.
While IaaS may look underdeveloped for the moment, by 2016 it is expected to have the same value as SaaS.
This is in contrast to 2010 when the IaaS market was only worth one third of the SaaS market.
While Platform-as-a-Service is always going to be a smaller market than any of the others, growth here will also be very strong. What needs to be remembered is that PaaS, while smaller, is a critical growth factor for other market segments here. By the end of the year it will be worth US$ 1.2 billion.
Cloud management and security, another critical area for other segments, is expected to grow to US$ 3.3 billion by the end of the year. It consists of cloud security services, IT operations management and storage management. This is also likely to experience considerable growth in the coming years.
While North America is still the largest region and expected to produce the biggest market growth — around 61 percent — the emerging regions like Asia/Pacific, China and Latin America are expected to demonstrate the highest regional growth rate.
Europe will produce a growth rate of 17 percent while struggling to shake off its economic woes. If you’re interested in more on this you can get a full copy of the report, but you do have to pay for it.
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