The public cloud services market is expected to grow 19.6 percent in 2012 to total $109 billion globally, with Business process services (BPaaS) said to account for about 77 percent of the total market, according to a report by Gartner.
Infrastructure as a service (IaaS) is seen to be the fastest-growing segment of the public cloud services market and is expected to grow 45.4 percent in 2012. The cloud management and security services segment, comprising cloud security services, IT operations management (ITOM) and storage management (including backup and recovery services), is also forecast to grow to $3.3 billion in 2012.
"The total public cloud services market size in 2011 was $91.4 billion, and it will grow to $206.6 billion in 2016. As the market grows, IaaS will become a larger part of the overall market, while the market share of cloud management and security services will grow as well," said Ed Anderson, Research Director, Gartner.
BPaaS, which is expected to touch $84.2 billion in 2012, up from $72 billion in 2011, is the largest segment primarily because of the inclusion of cloud advertising as a subsegment, Gartner said. Cloud advertising will continue to account for about 47 percent of total public cloud services spending through 2016.
Gartner expects Software as a service (SaaS), the next-largest segment, to grow to $14.4 billion in 2012, with IaaS said to grow from $4.3 billion in 2011 to $6.2 billion in 2012. While back in 2010 the IaaS market was less than one-third the size of the SaaS market, by 2016, the former is forecast to grow to almost equal the size of the latter.
Growth in Platform as a service (PaaS) will also be high, with this segment expected to grow to $1.2 billion in 2012, Gartner said. PaaS, while a smaller market relative to the other segments, is strategic and considered to be a vital growth driver for other segments, including BPaaS and SaaS.
The "Forecast Overview: Public Cloud Services, Worldwide, 2011-2016, 2Q12 Update" report found that geographically, North America is expected to produce the largest absolute increase in market size, with the highest regional growth rates expected to be seen in the emerging regions of Asia/Pacific (including India and Indonesia), greater China, Eurasia (including Russia) and Latin America (including Argentina, Mexico and Brazil).
"The cloud services market is clearly a high-growth sector within the overall IT marketplace. The key to taking advantage of this growth will be understanding the nuances of the opportunity within service segments and geographic regions, and then prioritizing investments in line with the opportunities," said Ed.
It was noted that while high growth rates will occur in emerging markets, including the top three growth countries of India, Indonesia and China, 79 percent of spending increases will originate from North America and Western Europe. Cloud services providers, will need to take a strategic approach when considering both high-volume and high-growth markets, as both will be important in the development of sustained, global strategies.
Gartner stated that the North America and Western Europe regions dominated in terms of the development, availability and adoption of cloud services.
North America will account for the greatest percentage of absolute growth in the cloud services market, contributing to 61 percent of all growth from 2010 through 2016. Western Europe - which is expected to grow the slowest during the forecast period, mostly due to ongoing eurozone economic issues - will follow, with 17 percent of absolute cloud services growth over the same period.
Earlier last week, research firm IDC had released a report in which it stated that it expects global public IT services spending to amount to more than $40 billion in 2012, with this figure said to touch $100 billion in 2016. That study had also found that SaaS will claim the largest share of public IT cloud services spending over the next five years, and that emerging markets are expected to see the fastest growth in public IT services spending.
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