Public cloud services market to hit $246.8bn in 2017; Gartner

The demand from artificial intelligence, analytics and IoT will drive cloud growth

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Public cloud services market to hit $246.8bn in 2017; Gartner Gartner also predicts more cloud growth in the infrastructure compute service space as adoption becomes increasingly mainstream
By  Aasha bodhani Published  March 9, 2017

Research house Gartner has projected that worldwide public cloud services will grow 18% in 2017, reaching $246.8bn.

According to Gartner, the highest growth will come from cloud system infrastructure services (infrastructure-as-a-service), which is expected to grow 36.8% and reach $34.6bn this year. Furthermore, cloud application services (software-as-a-service) is projected to grow 20.1% and reach $46.3bn.

The SaaS market is projected to see a slightly slower growth over the next few years with increasing maturity of SaaS offerings, namely human capital management (HCM) and customer relationship management (CRM) and the acceleration in the buying of financial applications.

Sid Nag, research director at Gartner, said: "While some organisations are still figuring out where cloud actually fits in their overall IT strategy, an effort to cost optimise 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."

Nag continued: "Organisations are pursuing strategies because of the multidimensional value of cloud services, including values such as agility, scalability, cost benefits, innovation and business growth. 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."

Gartner also predicts more cloud growth in the infrastructure compute service space as adoption becomes increasingly mainstream. The demand from artificial intelligence, analytics and IoT, in both enterprise and start-up spaces, will not only drive cloud growth, but also intensify workloads.

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