According to Gartner, the global market for public cloud services will grow by 17 percent in 2020 to a total of 266.4 billion US dollars, compared to 227.8 billion US dollars in 2019.
The adoption of cloud computing has now become established, said Sid Nag, vice president of research at Gartner. This means higher spending in the cloud, but also higher expectations of cloud buyers for what they get for their money.
According to Gartner, Software-as-a-Service (SaaS) will continue to be the largest market segment: Next year is projected to be 116 billion SaaS, up from 99.5 billion in 2019.
The second-largest sector is Infrastructure as a Service in the Cloud (IaaS), which will reach 50 billion by 2020. IaaS is expected to grow 24% year-on-year, the highest growth rate in all market segments that Garter has achieved through data center consolidation. Because today’s applications and workloads, many of which are cloud applications, require infrastructure on a scale that traditional data centers cannot.
Cloud computing was one of the three main areas where most global CIOs would increase their investments next year, Gartner said: “As companies become increasingly dependent on cloud technologies, IT teams are pushing to take applications from the cloud and move existing digital assets.
However, as cloud computing becomes more prevalent, the landscape becomes more complex and competitive, requiring customers to help manage multiple vendors and applications in the cloud.
By 2022, Gartner says, up to 60% of businesses will be using a third-party cloud-managed services offering, twice as many as in 2018.
“The native capabilities of the cloud, application services, multi-cloud and hybrid cloud comprise a diverse cloud ecosystem that will be an important differentiator for technology product managers. The demand for strategic cloud service outcomes indicates an organizational shift towards digital business outcomes,” Nag said.
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