Revenues of public cloud services worldwide will reach $206.2 billion by the end of 2019, up 17.3% from $175.8 billion in 2018, according to Gartner’s latest forecast.
In 2017, the market was valued at $145.3 billion, which is expected to grow 21% this year.
Infrastructure as a service (IaaS): The fastest growing segment in public cloud services market
Cloud system IaaS is the fastest growing segment in public cloud services market. Gartner forecasts that IaaS will reach $39.5 billion in 2019, up 27.6% from $31 billion in 2018.
By 2022, the analyst firm predicted, 90% of organizations will purchase IaaS public cloud services from an integrated IaaS and PaaS provider. The organizations will use both IaaS and PaaS offerings from a single provider.
“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. Already, strategic initiatives such as digital transformation projects resulting in the adoption of multicloud and hybrid cloud fuel the growth of the IaaS market.”
Software as a service (SaaS): The largest segment in public cloud services market
SaaS continues to be the largest segment in public cloud service market. The revenue for SaaS segment will grow 17.8% in 2019 to total $85.1 billion.
“The increasing adoption of SaaS applications and other cloud services impacts the management, dissemination and exploitation of enterprise content,” Craig Roth, research vice president at Gartner.
“Organizations are steadily — but not exclusively — shifting their content environments to SaaS. Gartner expects that by 2019, the current enterprise content management (ECM) market will devolve into purpose-built, cloud-based content solutions and solution services applications.”
Business Process as a Service (BPaaS)
Further, revenues for BPaaS category will reach $50.3 billion in 2019, witnessing a 7.9% growth year over year.
Gartner analysts will provide additional analysis at Gartner IT Infrastructure, Operations & Cloud Strategies Conference on November 26-27 at London, and on December 3-6 at Las Vegas.