Categories: CloudIAAS

Public Cloud Market To Hit £140bn In 2016

The global public cloud services market will be worth $204 billion (£140bn) this year, up by more than 16 percent from 2015’s total of $175 billion (£123bn).

This is according to research firm Gartner, which predicts the highest growth in 2016 will come from Infrastructure as a Service (IaaS)  offerings; set to grow 38.4 percent.

Shift

“The market for public cloud services is continuing to demonstrate high rates of growth across all markets and Gartner expects this to continue through 2017,” said Sid Nag, research director at Gartner.

“This strong growth continues reflect a shift away from legacy IT services to cloud-based services, due to increased trend of organisations pursuing a digital business strategy.”

Gartner’s predictions come as Synergy Research Group claimed that 2015 was a year where the growth rate for public Infrastructure and Platform as a Service (IaaS/PaaS) services hit 51 percent, outgrowing the private and hybrid cloud segment.

“In many ways 2015 was the year when cloud became mainstream. Across a wide range of cloud applications and services we have seen that usage has now passed well beyond the early adopter phase and barriers to adoption continue to diminish,” said Synergy Research Group’s chief analyst Jeremy Duke earlier in January.

Within the cloud services market, Gartner said that IaaS will remain the fastest-growing segment in 2016, predicted to reach $22.4 billion (£15.7bn).

“IaaS continues to be the strongest-growing segment as enterprises move away from data center build-outs and move their infrastructure needs to the public cloud,” said Nag. “Certain market leaders have built a significant lead in this segment, so providers should focus on creating differentiation for success.”

Take our cloud quiz here!

Ben Sullivan

Ben covers web and technology giants such as Google, Amazon, and Microsoft and their impact on the cloud computing industry, whilst also writing about data centre players and their increasing importance in Europe. He also covers future technologies such as drones, aerospace, science, and the effect of technology on the environment.

Recent Posts

Ofcom Cites Motorola, Sepura Over Competition Law

British comms regulator issues provisional statement of objections to Motorola Solutions UK and Sepura over…

1 day ago

Facebook Oversight Board Begins Hearing Cases

Two years after it was first mooted, Facebook oversight board which can overrule Mark Zuckerberg…

1 day ago

Uber, Lyft Ordered To Classify California Drivers As Employees

Landmark ruling for gig economy? Californian Appeals Court orders ride hailing firms Uber and Lyft…

1 day ago

McAfee Raises $620 Million With Wall Street Return

Security vendor McAfee has returned to the public markets with an IPO that raised $620…

2 days ago

Sir Jony Ive To Redesign Airbnb’s Products, Services

British designer of the Apple iPhone is to head up a redesign of Airbnb's core…

2 days ago

PayPal Opens Up To Cryptocurrencies

Popular online payments system PayPal announces entry into cryptocurrency market, in a move that may…

2 days ago