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Global public cloud services market will cross $300B mark by 2022: Gartner

public cloud market

Revenues of public cloud services worldwide will reach $214.3 billion by the end of 2019, up 17.5% from $182.4 billion in 2018, according to Gartner’s latest forecast.

Cloud system IaaS will be the fastest growing segment in the public cloud services market. Gartner forecasts that IaaS will reach $38.9 billion in 2019, up 27.5% from $30.5 billion in 2018.

Following IaaS, the platform as a service (PaaS) or the cloud application infrastructure services will witness the second-highest growth rate (21.8%).

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

“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 time the growth of overall IT services.”

public cloud market

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

“Currently almost 19 percent of cloud budgets are spent on cloud-related services, such as cloud consulting, implementation, migration and managed services, and Gartner expects that this rate will increase to 28 percent by 2022.”

Today, over one-third of the organizations consider investing in the cloud as a top three priority. This is affecting the services available in the market. As per Gartner, over 30% of technology providers will shift their new software investments from cloud-first to cloud-only, by the end of 2019.

What this means is that there will be a decline in usage of license-based software, while rise in SaaS and subscription-based cloud consumption models.

Also read: Five common myths and misconceptions about artificial intelligence: Gartner

“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,” said Mr. Nag.

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

Source: https://www.gartner.com/en/newsroom/press-releases/2019-04-02-gartner-forecasts-worldwide-public-cloud-revenue-to-g

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