New research from Gartner indicates that the worldwide public cloud services market will grow by 17.5% in 2019, with the fastest-growing market segment being cloud system infrastructure services, followed by cloud application infrastructure services.
Gartner’s annual forecast of worldwide public cloud service revenue includes a range of interesting insights into how the research firm sees the current and future landscape of public cloud computing. Not only will the public cloud revenue increase significantly, the public cloud services market will grow to $214.3 billion this year, up from $182.4 billion in 2018.
The research further focuses upon five public cloud market segments and projects their expected growth through to 2022. These are:
- Cloud business process services
- Platform as a service (PaaS)
- Software as a service (SaaS)
- Cloud management and security services
- Infrastructure as a service (IaaS)
The most significant rise is expected to be in IaaS, which the research firm is predicting will grow by 27.5% by the end of 2019. Elsewhere, PaaS revenues will also experience a hefty jump this year, with 21.8% year-on-year growth.
Business intelligence, supply chain management, project and portfolio management and enterprise resource planning (ERP) will see the fastest growth in end-user spending on SaaS applications up to 2022.
Cloud business process services are also set to grow quickly during the same period, with forecasted revenues of $61.1 billion compared to 2018’s revenues of $45.8 billion, whilst cloud management and security will see revenues increasing from $10.5 billion up to $17.9 billion.
By the end of 2019, more than 30% of technology providers’ new software investments will shift from cloud-first to cloud-only. This means that licence-based software consumption will further reduce, while SaaS and subscription-based cloud consumption models continue their rise.
Sid Nag, research vice president at Gartner commented: “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 organisations. 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”.