Cloud operator and vendor revenues continue to grow at a great speed, surpassing the $150 billion milestone in the first half of 2019, according to a new data from Synergy Research Group.
The research group said spending on seven distinct cloud service and infrastructure market segments grew by 24% when compared to 2018 report.
The fastest growing cloud service segment was infrastructure and platform services (IaaS & PaaS) with a growth rate of 44%, followed by software services (SaaS) by 27%, unified communications services (UCaaS), up 23%, and hosted private cloud infrastructure services spending with a rise of 20%.
“Cloud-associated markets are growing at rates ranging from 10% to well over 40% and annual spending on cloud will double in under four years. Cloud is increasingly dominating the IT landscape,” said John Dinsdale, a Chief Analyst at Synergy Research Group.
“Cloud has opened up a range of opportunities for new market entrants and for disruptive technologies and business models.”
Synergy study also found that the surge in cloud computing is being driven by businesses increasingly adopting cloud technology from multiple providers to store data in multiple places for better security.
Many companies like Amazon, Microsoft and Google continue to remain the dominant providers in the cloud market. This comes with no surprise as they constantly introduce new offerings that are designed to provide an improved experience to their users. This has aggressively grown the revenue streams overall, benefiting other cloud providers too.
The companies getting the most benefits from this growth include Amazon, Microsoft, Google, IBM, Rackspace, NTT, Salesforce, Adobe, RingCentral, Mitel, Dell EMC, Cisco, HPE, Digital Realty, Equinix, and CyrusOne.
“The flip side is that some traditional IT players are having a hard time balancing protection of legacy businesses with the need to fully embrace cloud,” Chief Analyst at Synergy Research Group said in a statement.