According to a new forecast by Gartner, global public cloud revenue to grow 17% in 2020. Read on to know more…
Cloud computing is an essential element of a company’s digital transformation. As organizations — small, medium, and large enterprises are urged to adapt and scale innovation, Gartner predicts the public cloud spending will grow.
According to a new study by Gartner, cloud computing is changing the way enterprises allocate their technology funds. Most Chief Information Officers (CIOs) will likely increase their investment in this segment by next year. As organisations increase their reliance on Cloud technologies, IT teams are rushing to embrace Cloud-built applications and relocate existing digital assets. According to the market research, various forms of Cloud computing are among the top three areas where most global CIOs will increase their investment next year.
According to Gartner, the worldwide public cloud services market is expected to grow 17% in 2020 to reach $266.4 billion, up from $227.8 billion in 2019. Gartner revealed that information technology spending in India is expected to hit $94 billion in 2020, which is a 6.6% increase from $88.5 billion in 2019.
In dollars, the market would bring in $266.4 billion next year, up from $227.8 billion this year. Forecasting even further, Gartner expects the market’s revenue to rise to $308.5 billion in 2021 and $354.6 billion in 2022.
Software-as-a-Service (SaaS) will dominate the market and is expected to grow to $116 billion next year due to the scalability of subscription-based software, the report said. This will be followed by infrastructure as a service (IaaS), which will reach $50 billion in 2020. Gartner revealed that IaaS is expected to grow 24% year-over-year (YOY), which is the highest growth rate across all market segments. Gartner said in the statement that IaaS is forecast to grow 24 per cent year over year, which is the highest growth rate across all market segments. This growth is attributed to the demands of modern applications and workloads which require infrastructure that traditional data centres cannot meet.
Other cloud segments expected to see an increase in revenue in 2020 and beyond are Cloud Business Process Services (BPaaS), Cloud Application Infrastructure Services (PaaS), and Cloud Management and Security Services.
Sid Nag, vice president, research, Gartner said that “At this point, cloud adoption is mainstream. The expectations of the outcomes associated with cloud investments, therefore, are also higher. Adoption of next-generation solutions are almost always ‘cloud-enhanced’ solutions, meaning they build on the strengths of a cloud platform to deliver digital business capabilities,”. He added Nag further explained that the cloud-managed service landscape is becoming increasingly sophisticated and competitive. “In fact, by 2022, up to 60% of organizations will use an external service provider’s cloud-managed service offering, which is double the percentage of organizations from 2018,”
“Building, implementing and maturing Cloud strategies will continue to be a top priority for years to come,” said Nag. Earlier, Gartner revealed that India is catching up with other entrants in the emerging technology space — China and Indonesia — at least in terms of end-user spending on public cloud services.