Gartner Projects Cloud Services Industry to Grow Exponentially Through 2022
The
worldwide public cloud services market is projected to grow 17.5 percent in
2019 to total $214.3 billion, up from $182.4 billion in 2018, according to
Gartner, Inc.
“Cloud services are definitely shaking up the
industry,” said Gartner. “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 organizations. 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.”
BPaaS
= business process as a service; IaaS = infrastructure as a service; PaaS =
platform as a service; SaaS = software as a service
According
to recent Gartner surveys, more than a third of organizations see cloud
investments as a top three investing priority, which is impacting market
offerings. Gartner expects that by the end of 2019, more than 30 percent of
technology providers’ new software investments will shift from cloud-first to
cloud-only. This means that license-based software consumption will further
plummet, while SaaS and subscription-based cloud consumption models continue
their rise.
“Organizations
need cloud-related services to get onboarded onto public clouds and to transform
their operations as they adopt public cloud services,”. Currently almost 19
percent of cloud budgets are spent on cloud-related services, such as cloud
consulting, implementation, migration and managed services, and Gartner expects
that this rate will increase to 28 percent by 2022.
“As
cloud continues to become mainstream within most organizations, technology
product managers for cloud related service offerings will need to focus on
delivering solutions that combine experience and execution with hyperscale
providers’ offerings,” said gartner. “This complementary approach will drive
both transformation and optimization of an organization’s infrastructure and
operations.”