The worldwide public cloud services market is expected to grow 17% in 2020 to reach $266.4 billion, up from $227.8 billion in 2019, a study by technology research firm Gartner says.
Software-as-a-Service (SaaS) will dominate the market and is expected to grow to $116 billion next year due to the scalability of subscription-based software, the report said. This will be followed by infrastructure as a service (IaaS), which will reach $50 billion in 2020.
The Stamford, US-based firm revealed that IaaS is expected to grow 24% year-over-year (YOY), which is the highest growth rate across all market segments.
“At this point, cloud adoption is mainstream. 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,” said Sid Nag, vice president, research, Gartner.
Cloud computing is changing the way enterprises allocate their technology funds. Most chief information officers (CIOs) will likely increase their investment in this segment by next year.
“The building, implementing and maturing cloud strategies will continue to be a top priority for years to come,” Nag added.
Nag further explained that the cloud-managed service landscape is becoming increasingly sophisticated and competitive. “In fact, by 2022, up to 60% of organizations will use an external service provider’s cloud-managed service offering, which is double the percentage of organizations from 2018,” he added.
Last week, a study by Gartner revealed that information technology spending in India is expected to hit $94 billion in 2020, which is a 6.6% increase from $88.5 billion in 2019.
India is catching up with other entrants in the emerging technology space — China and Indonesia — at least in terms of end-user spending on public cloud services, the firm had earlier said.