According to a recent report by Gartner, the public cloud services market is expected to grow 19.6 percent in 2012 to total $109 billion worldwide. Business process services (also known as business process as a service, or BPaaS) accounts for about 77 percent of the total market, while infrastructure as a service (IaaS) is the fastest-growing segment of the public cloud services market and is expected to grow 45.4 percent in 2012.
Ed Anderson, research director at Gartner said,”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.”
The growth of BPaaS is primarily because of the inclusion of cloud advertising as a sub segment. According to the report, BPaaS is expected to grow to $84.2 billion in 2012, up from $72 billion in 2011. In 2011, cloud advertising represented about 47 percent of the total public cloud services market, making it the biggest identifiable sub segment in the forecast. Through 2016, cloud advertising will continue to account for about 47 percent of total public cloud services spending.
The next largest segment, Software as a Service (SaaS), is expected to grow to $14.4 billion in 2012, while IaaS is forecast to grow from $4.3 billion in 2011 to $6.2 billion in 2012. By 2016, the IaaS market is expected to grow to almost equal the size of the SaaS market.
Apart from these, the Platform as a Service or PaaS segment is expected to grow to $1.2 billion in 2012. Another new segment, known as Cloud management and security services, comprising of cloud security services, IT operations management (ITOM) and storage management (including backup and recovery services)is expected to grow to $3.3 billion in 2012.
The report expects the highest regional growth rates in emerging Asia/Pacific (including India and Indonesia), greater China, Eurasia (including Russia) and Latin America (including Argentina, Mexico and Brazil). Western Europe is forecast to grow the slowest during the forecast period, largely due to ongoing eurozone economic issues, while growth will also be lower in mature Asia/Pacific markets due to ongoing economic challenges in the Japanese market.
According to the report, North America will account for the greatest percentage of absolute growth in the cloud services market, with 61 percent of all growth from 2010 through 2016. Western Europe will follow, with 17 percent of absolute cloud services growth over the same period. This highlights the dominance of North America and Western Europe in the development, availability and adoption of cloud services.
Ed Anderson, research director at Gartner, added,”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. When targeting specific markets within the cloud services marketplace, we recommend evaluating both potential market size and growth rates. These will vary by segment, subsegment, region and country.”