The global public cloud services market is forecasted to grow 17.5% in 2019, totalling $214.4bn, up from $182.4bn in 2018, according to Gartner, Inc.
Cloud system infrastructure services are the fastest-growing market segment; these are predicted to grow 27.5% in 2019 reaching $38.9bn, up from $30.5bn in 2018.
Cloud application infrastructure services follow in second place with a growth rate of 21.8%.
“Cloud services are definitely shaking up the industry,” said Sid Nag, research vice president at Gartner. “At Gartner, we know of no vendor or service provider today whose business model offerings and revenue growth are not influenced by the increasing adoption of cloud-first strategies in organisations. What we see now is only the beginning, though. Through 2022, Gartner projects the market size and growth of the cloud services industry at nearly three times the growth of overall IT services.”
Why a successful cloud future means making peace with your storage past
Further surveys by Gartner found that more than a third of enterprises view cloud investment as a top three investment priority. By the end of 2019, Gartner predicts that more than 30% of technology providers’ new software investments will shift from cloud-first to cloud-only. Due to this trend, license-based software consumption will further decrease, while subscription-based models will continue to rise in popularity.
“Organisations need cloud-related services to get onboarded onto public clouds and to transform their operations as they adopt public cloud services,” said Mr Nag. Currently, almost 19% of cloud budgets are spent on cloud-related services, such as cloud consulting, implementation, migration and managed services, and Gartner expects that this rate will increase to 28% by 2022.
“As cloud continues to become mainstream within most organisations, technology product managers for cloud-related service offerings will need to focus on delivering solutions that combine experience and execution with hyperscale providers’ offerings,” said Mr Nag. “This complementary approach will drive both transformation and optimisation of an organisation’s infrastructure and operations.”
The move to the cloud