Business spending on cloud computing is growing at a phenomenal rate, exceeding analysts’ expectations and predictions. The SaaS and IaaS sectors are the fastest growing.
According to Gartner, revenues generated by public cloud services are expected to increase by 18.5% in 2017, reaching a total of $ 260 billion. In 2016, total revenues amounted to $ 219.6 billion. This amount is paltry compared to the total revenue generated by the IT industry as a whole, estimated at $ 3.5 trillion, but still impressive compared to spending on enterprise software.
Cloud Computing: SaaS, IaaS and PaaS are growing fast
The SaaS (software as a service) sector, in particular, is growing at a phenomenal rate, well above what analysts expected. This rapid growth is having an impact on the public cloud market as a whole, and is pushing analysts to change their predictions upward. By the end of 2017, revenues generated by SaaS are expected to increase by 21 percent to $ 58.6 billion.
This increase is certainly related to the willingness of companies to use the cloud, but also to the fact that software vendors now offer certain services exclusively in the form of SaaS. In any case, Gartner says, companies are also taking advantage of this transition because SaaS generally offer better results for companies than internal software.
The adoption of PaaS (platforms as a service) is also growing faster than expected. For good reason, big companies are more and more convinced that PaaS will become the main platforms for developing applications in the near future. However, the largest increase in revenues should be recorded in the IaaS (infrastructure as a service) area, which is expected to grow by 36.6% in 2017 to reach a total of $ 34.7 billion.
According to Gartner, in 2016, about 17% of revenue generated by infrastructure, middleware, applications and business process services came from the cloud. By 2021, the cloud could represent a total of 28% of these revenues.
Cloud Computing: the market remains dominated by the same suppliers
The cloud services market, however, should remain dominated by the major players. Gartner estimates that two-thirds of spending on cloud computing services should go to the top 10 cloud service providers by 2021. In the IaaS domain, leaders are Amazon, Microsoft, and Alibaba. In the SaaS and PaaS segments, it is the former internal software vendors that are benefiting from this change. Oracle, SAP and Microsoft are gradually transitioning to the cloud.
Nevertheless, many barriers remain and hinder the adoption of cloud services. According to a survey conducted by Oracle, nearly half of the companies surveyed have a negative image of the cloud that prevents them from adopting IaaS. Similarly, almost half of the companies thought that IaaS offered an increase in speed and availability, and the companies that adopted them recently are generally more disappointed with those that have been using IaaS for a long time. Finally, 45% of cloud users believe that cloud migration costs outweigh the savings generated by IaaS.