The global public cloud services market is to grow by 17.5% in 2019 to reach $214.3 billion Gartner reports, up from $182.4bn in 2018, as organisations continue to adopt cloud-first strategies.
The fastest growing market segment is cloud system infrastructure services (aka IaaS), with 27.5% growth in 2019 bringing revenues worth $38.9bn, up from $30.5bn in 2018. The 2nd fastest growing segment is cloud application infrastructure services (aka PaaS), with revenue growth of 21.8%.
“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 organisations," the analyst says. "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.”
According to Gartner, over 30% of organisations see cloud investments as a top 3 investing priority. As such, by end 2019 over 30% of technology provider software investments should shift from cloud-first to cloud-only, bringing further decline to license-based software consumption. On the other hand, SaaS and subscription-based cloud consumption models will remain on the rise.
“As cloud continues to become mainstream within most organisations, technology product managers for cloud related service offerings will need to focus on delivering solutions that combine experience and execution with hyperscale providers’ offerings,” Gartner concludes. “This complementary approach will drive both transformation and optimization of an organisation’s infrastructure and operations.”
Go Gartner Forecast: Public Cloud Services, Worldwide, 2016-2022, Q4 2018 Update
