Public cloud services revenue forecast from Gartner

The global public cloud services market is forecast to grow 21.4 percent to $186.4 billion in 2018, according to Gartner.
Public Cloud service revenue forecastCloud system infrastructure services (infrastructure as a service or IaaS) is forecast to grow 35.9 percent to $40.8 billion in 2018.

The top 10 providers will account for nearly 70 percent of the IaaS market by 2021 against 50 percent in 2016.

“The dominance of the hyperscale IaaS providers creates both enormous opportunities and challenges for end users and other market participants,” said Sid Nag, research director at Gartner.

Enterprises need to be cautious about IaaS providers potentially gaining unchecked influence over customers and the market. Organizations will demand simpler way to move workloads, applications and data across cloud providers’ IaaS offerings without penalties.

Software as a service (SaaS) revenue is expected to grow 22.2 percent to reach $73.6 billion in 2018. SaaS will reach 45 percent of total application software spending by 2021.

Database platform as a service (dbPaaS), as part of the platform as a service (PaaS) category, will reach almost $10 billion by 2021. Hyperscale cloud providers are increasing the range of services they offer to include dbPaaS.

Public cloud revenue growth rate will stabilize from 2018 onward, reflecting the increasingly mainstream status and maturity that public cloud services will gain within a wider IT spending mix, Gartner said.