Worldwide cloud services to grow 18% this year
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Worldwide cloud services to grow 18% this year

The worldwide public cloud services market is projected to grow 18% in 2017 to total $246.8 billion, up from $209.2 billion in 2016, according to Gartner (www.gartner.com).

The research group says the highest growth will come from cloud system infrastructure services (IaaS), which is projected to grow 36.8% in 2017 to reach $34.6 billion. Cloud application services (SaaS) is expected to grow 20.1% to reach $46.3 billion.

"The overall global public cloud market is entering a period of stabilization, with its growth rate peaking at 18% in 2017 and then tapering off over the next few years," said Sid Nag, research director at Gartner. "While some organizations are still figuring out where cloud actually fits in their overall IT strategy, an effort to cost optimize and bring forth the path to transformation holds strong promise and results for IT outsourcing (ITO) buyers.”

Gartner predicts that through 2020, cloud adoption strategies will influence more than 50% of IT outsourcing deals.

"Organizations are pursuing strategies because of the multidimensional value of cloud services, including values such as agility, scalability, cost benefits, innovation and business growth," said Nag. "While all external-sourcing decisions will not result in a virtually automatic move to the cloud, buyers are looking to the 'cloud first' in their decisions, in support of time-to-value impact via speed of implementation.”

 

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