Gartner has today released its forecast for the worldwide public cloud services market which is set to grow 17% in 2020 to total $266.4 billion, up from $227.billion in 2019.
“At this point, cloud adoption is mainstream,” said Sid Nag, research vice president at Gartner. “The expectations of the outcomes associated with cloud investments, therefore, are also higher. Adoption of next-generation solutions are almost always ‘cloud-enhanced’ solutions, meaning they build on the strengths of a cloud platform to deliver digital business capabilities.”
Gartner says software as a service (SaaS) will remain the largest market segment, which is forecast to grow to $116 billion next year due to the scalability of subscription-based software.
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The second-largest market segment is cloud system infrastructure services, or infrastructure as a service (IaaS), which will reach $50 billion in 2020.
IaaS is forecast to grow 24% year over year, which is the highest growth rate across all market segments.
Various forms of cloud computing are among the top three areas where most global CIOs will increase their investment next year.
“The cloud-managed service landscape is becoming increasingly sophisticated and competitive. In fact, by 2022, up to 60% of organisations will use an external service provider’s cloud-managed service offering, which is double the percentage of organisations from 2018,” said Nag. “Cloud-native capabilities, application services, multi-cloud and hybrid cloud comprise a diverse cloud ecosystem that will be important differentiators for technology product managers. Demand for strategic cloud service outcomes signals an organisational shift toward digital business outcomes.”
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