The cloud boom that has dominated enterprise technology for the past decade is far from over, with Gartner predicting a dramatic climb in revenue from public cloud services next year.
According to a report published by the company, the public cloud services market will increase by 17% around the world in 2020, rising from $227.8bn in 2019 to $266.4bn.
The field will continue to be led by the software as a service (SaaS) market, the largest cloud market segment, which is forecasted to grow to $116bn.
However, it is infrastructure as a service (IaaS), which will enjoy the biggest revenue climb in the public cloud space. It is predicted to see growth of 24% year over year, to reach $50bn in 2020.
IaaS is expected to grow as businesses increasingly look beyond traditional data centres to meet the needs of modern applications.
Public cloud revenue growth to continue into 2020s
The data indicates that while cloud technologies are very much the norm in modern businesses, there is still significant potential for expansion of their use.
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“At this point, cloud adoption is mainstream,” said Sid Nag, research vice president at Gartner.
“The expectations of the outcomes associated with cloud investments therefore are also higher. Adoption of next-generation solutions are almost always ‘cloud-enhanced’ solutions, meaning they build on the strengths of a cloud platform to deliver digital business capabilities.”
This approach is set to translate into continued public cloud revenue growth over the next few years.
The total market value is projected to reach $308.5bn in 2021 and $354.6bn in 2022, with SaaS growing to $151.1bn in 2022 and IaaS to $74.1bn in the same year.
Gartner also anticipates such growth to continue.
“Building, implementing and maturing cloud strategies will continue to be a top priority for years to come,” said Nag.
“The cloud managed service landscape is becoming increasingly sophisticated and competitive. In fact, by 2022, up to 60% of organisations will use an external service provider’s cloud managed service offering, which is double the percentage of organisations from 2018.”