Public cloud services market to increase 18.5% to $131 billion in 2013: Gartner

Infotech Lead India: Cloud compute, storage and print services — part of Infrastructure as a service (IaaS) — is driving public cloud services market.

Gartner says public cloud services market will increase 18.5 percent in 2013 to $131 billion worldwide from $111 billion in 2012.

Infrastructure as a service (IaaS) is growing 42.4 percent in 2012 to $6.1 billion and expected to grow 47.3 percent in 2013 to $9 billion, according to Gartner.

IDC says worldwide spending on hosted private cloud (HPC) services – an operational model for deploying computing infrastructure services of many types via a cloud model – will be more than $24 billion in 2016.

HPC — which will have a CAGR growth of more than 50 percer over the 2012-2016 — will become the backbone of a new set of infrastructure services, transforming existing provider models for IT outsourcing, hosting infrastructure services, and other key IT industries, IDC said.

According to Gartner, Cloud advertising comprises 48 percent of the total market in 2012. From 2013 through 2016, $677 billion will be spent on cloud services worldwide, $310 billion of which will be spent on cloud advertising.

Ed Anderson, research director at Gartner, said: “Continued growth of the cloud services market will result from the adoption of cloud services for production systems and workloads, in addition to the development and testing scenarios that have led as the most prominent use case for public cloud services to date.”

Cloud business process services segment (BPaaS) is the second-largest market segment after cloud advertising, comprising 28 percent of the total market in 2012, followed by cloud application services (software as a service [SaaS]) at 14.7 percent, cloud system infrastructure services (IaaS) at 5.5 percent, cloud management and security services at 2.8 percent, and cloud application infrastructure services (platform as a service [PaaS]) at one percent.

North America is the largest region in the cloud services market, accounting for 59 percent of all new spending on cloud services from 2013 through 2016.

Western Europe, despite the growth challenges in the region, remains the second-largest region and will account for 24 percent of all new spending during the same time period.

The highest growth rates for cloud services continue to come from the emerging regions of Emerging Asia/Pacific (led by Indonesia and India), Greater China and Latin America (led by Argentina, Mexico and Brazil).

Robert Mahowald, Research Vice President, SaaS and Cloud Services, said: “Virtual private cloud will be the predominant operational model for companies wanting to take advantage of the speed and lower capital costs associated with cloud computing while cloud service providers will welcome the move away from the expense of dedicated 1:1 physical systems for delivering their business process and data center outsourcing and other services.”

According to IDC, virtual private cloud is expected to make gains in part because of its similarity to public cloud, particularly public Infrastructure as a Service (IaaS), which many IT buyers are already using as a cost-saving alternative to replacing aging infrastructure.
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