According to Gartner, Inc. Business Process Services (BPaaS), the public cloud services market is predicted to grow 19.6 percent in 2012 totaling $109 billion worldwide. This accounts for around 77 percent of the total market with infrastructure as a service (IaaS) the fastest growing sector having an expected growth of 45.4 percent in 2012.
Ed Anderson, a research director at Gartner states that “The cloud services market is clearly a high-growth sector within the overall IT marketplace” and “The key to taking advantage of this growth will be in understanding the nuances of the opportunity within service segments and geographic regions, and then prioritizing investments in line with the opportunities.”
Due to the addition of cloud advertising as a sub-segment, BPaaS is primarily the largest segment. They are expected to grow to $84.2 billion in 2012. Compared to $72 billion in 2011, this is up $12.2 billion. In 2011, cloud advertising denoted around 47 percent of the overall public cloud services market. This makes it the largest classifiable sub-segment in the forecast. Moreover, cloud advertising will continue to account for around 47 percent of total public cloud services spending through 2016.
The next largest segment with a predicted growth to $14.4 billion in 2012 is software as a service (SaaS). Compared to IaaS that is expected to grow from $4.3 billion (2011) to $6.2 billion (2012). In 2010, the IaaS market was less than one-third the size of the SaaS market. It is expected that the IaaS market will grow to nearly equal the size of the SaaS market by 2016.
Application infrastructure services (PaaS) is also expected to have high growth even though it is a smaller market compared to other segments. It is considered to be a dynamic growth motivator for other segments such as BPaaS and SaaS. The PaaS is expected to grow to $1.2 billion in 2012.
A new forecast segment is cloud management and security services. It is comprised of IT operations management (ITOM), cloud security services and storage management (recovery services and backup). The cloud management and security services are predicted to grow to $3.3 billion in 2012.
Presently North America is the biggest region and is expected to produce the largest total increase in market size. However, according to Gartner the highest regional growth rates are developing in Asia/Pacific (includes Indonesia and India), China, Latin America (includes Brazil, Mexico and Argentina) and Eurasia (includes Russia). Gartner also predicts that Western Europe will have the slowest growth due to continuing Eurozone economic issues and well-developed Asia/Pacific markets will be lower because of constant economic difficulties in the Japanese market.
From 2010 through 2016, North America is expected to have the highest percentage of total growth in the cloud services market predicted at 61 percent. Next is Western Europe with a forecasted growth of 17 percent. This accentuates the influence of Western Europe and North America in the development, accessibility and implementation of cloud services.
High growth rates will take place in developing markets including countries such as China, India and Indonesia. Nonetheless, 79 percent of spending increases will come from Western Europe and North America. Cloud service providers will have to use a strategic method in regards to both high-volume and high-growth markets. This will be imperative in the development of continuous, worldwide strategies.
In 2011, the total public cloud services market was $91.4 billion. Anderson states that it is expected to grow to $206.6 billion in 2016. As the market increases, IaaS will basically be the largest part of the overall market. Likewise, the market share of security services and cloud management will also grow. Anderson further states that when targeting specific areas in the cloud services market it is recommended that growth rates and potential market size be evaluated. This is because countries, regions, segments and sub-segments will vary.
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