Menu
​Infrastructure-as-a-Service fastest growing as Public Cloud market tops $200 billion

​Infrastructure-as-a-Service fastest growing as Public Cloud market tops $200 billion

“The market for public cloud services is continuing to demonstrate high rates of growth across all markets..."

The worldwide public cloud services market is projected to grow 16.5 percent in 2016 to total $US204 billion, up from $175 billion in 2015.

According to Gartner, the highest growth will come from cloud system infrastructure services (IaaS) which is projected to grow 38.4 percent in 2016.

Meanwhile, cloud advertising, the largest segment of the global cloud services market, is expected to grow 13.6 percent in 2016 to reach $US90.3 billion.

“The market for public cloud services is continuing to demonstrate high rates of growth across all markets and Gartner expects this to continue through 2017,” says Sid Nag, Research Director, Gartner.

“This strong growth continues reflect a shift away from legacy IT services to cloud-based services, due to increased trend of organisations pursuing a digital business strategy.”

Looking ahead, Nag says the IaaS segment will remain the fastest-growing segment in 2016, forecast to reach 22.4 billion.

“IaaS continues to be the strongest-growing segment as enterprises move away from data centre build-outs and move their infrastructure needs to the public cloud,” Nag adds.

“Certain market leaders have built a significant lead in this segment, so providers should focus on creating differentiation for success.”

Cloud application services (SaaS) is forecast to grow 20.3 percent in 2016, to $US37.7 billion.

As software vendors shift their business models from on-premises licensed software to public cloud-based offerings, Nag believes this trend will continue.

In addition, the entry of some major software vendors into the public cloud last year will fuel growth of the SaaS market moving forward.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags public cloudSaaSGartnerCloudiaas

Slideshows

Meet the leading HP partners in New Zealand...

Meet the leading HP partners in New Zealand...

HP has recognised its top performing partners in New Zealand at the second annual 2016 HP Partner Awards, held at a glittering bash in Auckland. The HP Partner Awards recognises and celebrates excellence, growth, consistency and engagement of its top partners. This year also saw the addition of several new categories, resulting in 11 companies winning across 11 award categories.

Meet the leading HP partners in New Zealand...
Channel comes together as Ingram Micro Showcase hits Auckland

Channel comes together as Ingram Micro Showcase hits Auckland

Ingram Micro outlined its core focuses for 2017 at Showcase in Auckland, bringing together the channel for a day of engaging keynotes, compelling breakout sessions and new technologies.

Channel comes together as Ingram Micro Showcase hits Auckland
Show Comments