Public cloud services market to hit USD 260 bln this year

Friday 13 October 2017 | 13:37 CET | News

The global public cloud services market us set to reach sales of USD 260.2 billion this year, up 18.5 percent compared to USD 219.6 billion in 2016, according to a report by Gartner. Software as a service (SaaS) revenue is expected to grow 21 percent to reach USD 58.6 billion at the end of 2017, with providers increasingly delivering nearly all application functional extensions and add-ons as a service. Strategic adoption of platform as a service (PaaS) offerings is also outperforming previous expectations and is set to rise to USD 11.4 billion from USD 9.0 billion. However, the highest revenue growth will come from cloud system infrastructure services (IaaS), which is projected to grow 36.6 percent in 2017 to reach USD 34.7 billion.

In terms of vendor share, Gartner expects 70 percent of public cloud services revenue to be dominated by the top 10 public cloud providers through 2021. In the IaaS segment, Amazon, Microsoft and Alibaba have already taken strong positions in the market, while in the SaaS and PaaS segments cloud's impact is driving major software vendors such as Oracle, SAP and Microsoft from on-premises, licence-based software to cloud subscription models, said the report.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

::: add a comment