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Worldwide public cloud services market projected to grow 16.5% in 2016: Gartner


January 25, 2016   by Canadian Underwriter


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The worldwide public cloud services market is projected to grow 16.5% in 2016 to total US$204 billion, up from US$175 billion in 2015, according to Gartner, Inc., an information technology research and advisory company based in Stamford, Conn.

The highest growth will come from cloud system infrastructure services, which is projected to grow 38.4% in 2016

The highest growth will come from cloud system infrastructure services (infrastructure as a service [IaaS]), which is projected to grow 38.4% in 2016, Gartner said in a press release on Monday. The IaaS segment is forecast to reach US$22.4 billion. Cloud advertising, the largest segment of the global cloud services market, is expected to grow 13.6% in 2016 to reach US$90.3 billion.

“The market for public cloud services is continuing to demonstrate high rates of growth across all markets and Gartner expects this to continue through 2017,” said Sid Nag, research director at Gartner. “This strong growth continues to reflect a shift away from legacy IT services to cloud-based services, due to increased trend of organizations pursuing a digital business strategy.” [click image below to enlarge]

Cloud advertising, the largest segment of the global cloud services market, is expected to grow 13.6% in 2016 to reach US$90.3 billion

Nag added that “IaaS continues to be the strongest-growing segment as enterprises move away from data center build-outs and move their infrastructure needs to the public cloud. Certain market leaders have built a significant lead in this segment, so providers should focus on creating differentiation for success.”

Cloud application services (SaaS) is forecast to grow 20.3% in 2016, to US$37.7 billion. “As software vendors shift their business models from on-premises licensed software to public cloud-based offerings, this trend will continue,” the release said. “In addition, the entry of some major software vendors into the public cloud last year will fuel growth of the SaaS market moving forward.”