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​Market disruption ahead as vendors split into distinct Public Cloud groups

​Market disruption ahead as vendors split into distinct Public Cloud groups

“The public cloud market will be propelled by its ecosystem of professional services, niche IT vendors and brokerage firms."

Vendors splitting into distinct groups - those delivering public cloud and those offering services around public cloud - will drive total market opportunity to an estimated $US136 billion by 2018.

According to Technology Business Research, the growing ecosystem around public cloud is made up of niche vendors, large systems integrators and traditional IT vendors, such as HP, Dell and Accenture, that shifted their cloud strategies from public cloud delivery to public cloud support.

Increasingly, revenue leaders look to the Internet of Things; geographic expansion; professional services, including managed services and brokerage; and simplified development environments and tools as sources of revenue growth.

“The public cloud market will be propelled by its ecosystem of professional services, niche IT vendors and brokerage firms,” says Kelsey Mason, Research Analyst, TBR.

“While the IaaS and PaaS markets consolidate, the SaaS market remains intact with many smaller players catching up in market share.”

Mason believes the benchmark indicates the vast majority of revenue is generated by top vendors and small regional players in the market, and leading vendors in revenue growth reached a maturation point where profit is priority over growth.

Public cloud portfolios continue to expand horizontally, vertically and across cloud segments, and professional services and niche SaaS vendors will continue to drive growth in the public cloud market.

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