Public cloud market to grow 21 per cent in 2018

The global public cloud services market will grow by 21 per cent this year, with a value of $186.4 billion.

A new report by Gartner forecasts cloud system infrastructure services (IaaS) will provide the biggest growth this year. The market analysts expect IaaS to grow by 40 per cent by the end of 2018, accounting for $40.8 billion. The report also projects that the top 10 providers will account for nearly 70 per cent of the IaaS market by 2021, up 50 per cent from 2016 figures.

"The increasing dominance of the hyperscale IaaS providers creates both enormous opportunities and challenges for end users and other market participants," said Sid Nag, research director at Gartner. "While it enables efficiencies and cost benefits, organisations need to be cautious about IaaS providers potentially gaining unchecked influence over customers and the market. In response to multicloud adoption trends, organisations will increasingly demand a simpler way to move workloads, applications and data across cloud providers’ IaaS offerings without penalties."

Software as a service (SaaS) remains the largest segment of the cloud market, with revenue expected to grow 22.2 per cent to reach $73.6 billion in 2018. Gartner expects SaaS to reach 45 per cent of total application software spending by 2021.

"In many areas, SaaS has become the preferred delivery model," Nag added. "Now SaaS users are increasingly demanding more purpose-built offerings engineered to deliver specific business outcomes."

Within the platform as a service (PaaS) category, the fastest-growing segment is database platform as a service (dbPaaS), expected to reach almost $10 billion by 2021. 

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