With a projected growth of 17.5 percent this year making it to a 214.3 billion per year industry, Cloud services aren’t going anywhere. In fact, the momentum is going to continue through to 2022 with the market size and growth of nearly three times that of overall IT services.
The fastest growing segment within this industry growth is IaaS (Infrastructure as a Service) which is forecasting to increase 27.5 percent. IaaS provides you with cloud managed network, compute, and storage systems, while you still manage your business applications, OS environment, and data. This service is rapidly growing due to the flexible control it gives the user, while commoditizing endpoint and server hardware onsite.
According to Gartner, the world's leading research and advisory company, more than a third of organizations see cloud investments as a top three investing priority and that by the end of this year, more than 30 percent of new software investments will shift to cloud-only offerings. This means that license-based software consumption will continue to diminish while SaaS and subscription-based cloud software models will continue to take over.
It’s simply a matter of time before the overwhelming majority of businesses either have cloud-based infrastructures or are entirely centralized on cloud environments. As cloud services continue to become mainstream within most organizations, Gartner says, technology product managers for these offerings will need to focus on delivering solutions that combine experience and execution with hyperscale providers’ offerings. The complementary approach will drive both transformation and optimization of the business’s infrastructure and operations.
Currently, nearly 19 percent of cloud budgets are spent on cloud-related services, such as cloud consulting, implementation, migration and managed services, and Gartner expects that this rate will increase to 28 percent by 2022.
The trend is continuing and for good reason.