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Cloud market continues to grow at near 20 percent annually

The worldwide public cloud services market is expected to grow 17 percent in 2019 to total $206.2 billion, up from $175.8 billion in 2018, according to a new report from Gartner Inc.

In 2018, Gartner forecasts that the market will grow 21 percent, from $145.3 billion in 2017. The fastest-growing segment of the market is infrastructure-as-a-service (IaaS), which is forecast to grow 28 percent in 2019 to $39.5 billion, from $31 billion in 2018.

By 2022, Gartner expects that 90 percent of organizations purchasing public cloud IaaS will do so from an integrated IaaS and platform-as-a-service (PaaS) provider, and will use both the IaaS and PaaS capabilities from that provider.

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"Demand for integrated IaaS and PaaS offerings is driving the next wave of cloud infrastructure adoption," said Sid Nag, research director at Gartner. “We expect that IaaS-only cloud providers will continue to exist in the future, but only as niche players, as organizations will demand offerings with more breadth and depth for their hybrid environments.”

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Already, strategic initiatives such as digital transformation projects resulting in the adoption of multi-cloud and hybrid cloud environments are fueling the growth of the IaaS market, Nag said.

Software-as-a-s-service (SaaS) remains the largest segment of the cloud market, with revenue expected to grow 18 percent to reach $85.1 billion in 2019.

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