Global Public Cloud Services to Total $131B This Year: Gartner


Global Public Cloud Services to Total $131B This Year: Gartner

By Ed Silverstein

Global public cloud services are predicted to jump 18.5 percent in 2013 to total $131 billion – a steep jump compared to $111 billion in 2012, according to Gartner.

In the latest projection, Gartner says Infrastructure-as-a-Service (IaaS), including cloud compute, storage and print services, is the fastest-growing segment; it jumped 42.4 percent in 2012 to $6.1 billion and is predicted to increase 47.3 percent in 2013 to $9 billion, Gartner adds.

The Gartner study also showed that cloud advertising is the biggest segment of the cloud services market. It was 48 percent of the market in 2012, and between 2013 and 2016, $677 billion will be spent on cloud services worldwide – $310 billion of which will be spent on cloud advertising, Gartner reports.

"The continued growth of the cloud services market will result from the adoption of cloud services for production systems and workloads, in addition to the development and testing scenarios that have led as the most prominent use case for public cloud services to date," Ed Anderson, research director at Gartner, said in a statement from the firm carried on MSPToday. "Evidence of this growth is found in the increasing demand for cloud services from end-user organizations, met by an increased supply of cloud services from suppliers."

It was also reported in the study that the cloud business process services segment (BPaaS) is the second-largest market segment after cloud advertising, making up 28 percent of the market in 2012. Next is cloud application services (software-as-a-service [SaaS]) at 14.7 percent, cloud system infrastructure services (IaaS) at 5.5 percent, cloud management and security services at 2.8 percent, and cloud application infrastructure services (platform-as-a-service [PaaS]) at 1 percent.

Emerging markets in Asia/Pacific, Latin America, Eastern Europe, the Middle East and North Africa appear to have the highest growth rates, but often have the smallest overall markets; however, China is a large and growing market. North America, Western Europe, Japan and the mature Asia/Pacific countries have larger, but slower-growth markets, Gartner said.

"Local economic factors, regulatory issues, the local political climate, the diverse landscape of global and local providers, including non-cloud providers, and other country-specific factors ensure a unique marketplace in each country and region," Anderson added.

North America is the largest region in the cloud services market, which will make up 59 percent of all new spending on cloud services between 2013 and 2016. Western Europe is in second, and will represent 24 percent of all new spending between 2013 and 2016. The highest growth rates for cloud services come from the Asia/Pacific region (led by Indonesia and India), China, and Latin America (led by Argentina, Mexico and Brazil), Gartner said.

"IT services providers, particularly those focused on delivering cloud services offerings or related services, must consider these disproportionately large mature markets if they want to play a leading role in cloud services growth worldwide," Anderson said. "Similarly, markets in Emerging Asia/Pacific, Greater China and Latin America should also be important considerations for IT services providers that want to capitalize on the high growth of these regions, particularly Latin America and Greater China."

In addition, another report said that TechNavios analysts are predicting that the global public cloud services market will increase at a CAGR (compound annual growth rate) of 29 percent between 2011 and 2015.

MSPToday explained a key factor contributing to this growth “is the need to reduce organizational IT service cost.” Also, the demand for public cloud services among SMEs (small- to medium-sized enterprises.) One possible reason that growth could be controlled is the security of cloud applications, MSPToday warns.

Edited by Allison Boccamazzo

MSPToday Contributor

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