The global public cloud services market is rapidly expanding – with 26% YOY in 2019 and revenue totaling $233.4 billion, claims the recent International Data Corporation study.
The global public cloud services market is soaring high – this includes the Infrastructure as a Service (IaaS), Software as a Service (SaaS), and Platform as a Service (PaaS). The latest International Data Corporation (IDC) research study has revealed that the market grew to 26% YOY in 2019, with the revenues totaling $233.4 billion.
The spending continued across different sectors to consolidate in 2019 with the collective revenue of the most preferred public cloud service providers. The list includes Amazon Web Services, Microsoft, Google, Salesforce, and Oracle. These providers contributed over one-third of the total, increasing their market share year-over-year.
Many organizations had earlier expressed their interest in cloud journeys in about ten years. Now, most of the businesses are planning to complete the shift in less than half of the mentioned period. As mentioned by Rick Villars, Group VP for Worldwide Research at IDC, in the company blog post – “Cloud is expanding far beyond niche e-commerce and online ad-sponsored searches. It underpins all the digital activities that individuals and enterprises depend upon as we navigate and move beyond the pandemic.”
Since 2016, the Market Has Doubled
The study found that the market has doubled in the last three years. In this period, the shared spending on PaaS and IaaS has almost tripled. This surge indicates the widespread adoption and dependence on cloud platforms and infrastructure. This is primarily done for application deployment into the IT internal applications, SaaS, and digital application delivery.
As a result, the total spending on PaaS and IaaS is projected to continue growing – even at a higher rate than the entire cloud market. This is most likely to go on for the next several years as flexibility, resilience, and agility guide the IT platform decisions. Unsurprisingly, the ongoing economic uncertainty is driving new attention to the core IaaS benefits – including low financial commitment, operational resilience, and flexibility to support business agility.
Furthermore, the SaaS applications remain the primary segment of the vast public cloud spending – with revenues over $122 billion in 2019. Even the growth has slowed somewhat in recent years – however, the pandemic induced crisis is serving as an accelerator for the SaaS adoption. This is valid across the primary and functional markets in order to address the rapid growth of remote workers.
Clearly, the combined spending for both IaaS and PaaS is relevant as it represents how the end customers consume these services while deploying applications onto the public cloud.