Gartner Forecasts Worldwide Public Cloud Revenue to Grow 17.3 Percent in 2019

by | Sep 16, 2018

Mumbai, India, September 13, 2018 — The worldwide public cloud services market is projected to grow 17.3 percent in 2019 to total $206.2 billion, up from $175.8 billion in 2018, according to Gartner, Inc. In 2018, Gartner forecasts that the market will grow 21 percent, up from $145.3 billion in 2017.

The fastest-growing segment of the market is cloud system infrastructure services (infrastructure as a service or IaaS), which is forecast to grow 27.6 percent in 2019 to reach $39.5 billion, up from $31 billion in 2018 (see Table 1).

By 2022, Gartner expects that 90 percent of organizations purchasing public cloud IaaS will do so from an integrated IaaS and platform as a service (PaaS) provider, and will use both the IaaS and PaaS capabilities from that provider.

“Demand for integrated IaaS and PaaS offerings is driving the next wave of cloud infrastructure adoption,” said Sid Nag, research director at Gartner. “We expect that IaaS-only cloud providers will continue to exist in the future, but only as niche players, as organizations will demand offerings with more breadth and depth for their hybrid environments. Already, strategic initiatives such as digital transformation projects resulting in the adoption of multicloud and hybrid cloud fuel the growth of the IaaS market.”

Table 1. Worldwide Public Cloud Service Revenue Forecast (Billions of U.S. Dollars)

 

2017

2018

2019

2020

2021

Cloud Business Process Services (BPaaS)

42.2

46.6

50.3

54.1

58.1

Cloud Application Infrastructure Services (PaaS)

11.9

15.2

18.8

23.0

27.7

Cloud Application Services (SaaS)

58.8

72.2

85.1

98.9

113.1

Cloud Management and Security Services

8.7

10.7

12.5

14.4

16.3

Cloud System Infrastructure Services (IaaS)

23.6

31.0

39.5

49.9

63.0

Total Market

145.3

175.8

206.2

240.3

278.3

BPaaS = business process as a service; IaaS = infrastructure as a service; PaaS = platform as a service; SaaS = software as a service
Note: Totals may not add up due to rounding.

Source: Gartner (September 2018)

Software as a service (SaaS) remains the largest segment of the cloud market, with revenue expected to grow 17.8 percent to reach $85.1 billion in 2019.

“The increasing adoption of SaaS applications and other cloud services impacts the management, dissemination and exploitation of enterprise content,” Craig Roth, research vice president at Gartner. “Organizations are steadily — but not exclusively — shifting their content environments to SaaS. Gartner expects that by 2019, the current enterprise content management (ECM) market will devolve into purpose-built, cloud-based content solutions and solution services applications.”

In the business process as a service (BPaaS) category, Gartner forecasts a revenue growth of 7.9 percent, to reach $50.3 billion in 2019. Gartner found that especially in this category, buyers increasingly expect deep domain expertise, technology and global deployment capabilities from their providers as well as service portfolios that bridge legacy offerings and support new automated, digital and cloud service delivery paradigms.

Share This Article!

Brian Pereira
Brian Pereira
Brian Pereira is an Indian journalist and editor based in Mumbai. He founded Digital Creed in 2015. A technology buff, former computer instructor, and software developer, Brian has 29 years of journalism experience (since 1994). Brian is the former Editor of CHIP India, InformationWeek India and CISO Mag. He has served India's leading newspaper groups: The Times of India and The Indian Express. Presently, he serves the Information Security Media Group, as Sr. Director, Editorial. You'll find his most current work on CIO Inc. During his career he wrote (and continues to write) 5000+ technology articles. He conducted more than 450 industry interviews. Brian writes on aviation, drones, cybersecurity, tech startups, cloud, data center, AI/ML/Gen AI, IoT, Blockchain etc. He achieved certifications from the EC-Council (Certified Secure Computer User) and from IBM (Basics of Cloud Computing). Apart from those, he has successfully completed many courses on Content Marketing and Business Writing. He recently achieved a Certificate in Cybersecurity (CC) from the international certification body ISC2. Follow Brian on Twitter (@creed_digital) and LinkedIn. Email Brian at: [email protected]
Recommended Posts
Why Landing On The Moon Is Difficult

Landing an uncrewed vehicle on the surface of the moon or any planet is not easy; space institutions have made multiple attempts after seeing their spacecraft crash on the surface.

Similar Articles

Share This