Cloud Infrastructure Growing Faster than Software as a Service
The worldwide public cloud services market is projected to grow 16.5 percent in 2016 to total $204 billion, up from $175 billion in 2015, according to Gartner, Inc.
The highest growth will come from cloud system infrastructure services (infrastructure as a service [IaaS]), which is projected to grow 38.4 percent in 2016.
Gartner now also includes cloud advertising in its cloud services forecast.
Cloud advertising includes cloud-based services that support the selection, transaction and delivery of advertising and ad-related data.
Cloud application services (SaaS) are forecast to grow 20.3 percent in 2016, to $37.7 billion.
Cloud advertising services involve an auction mechanism that matches bidders with advertising impressions as they become available.
In fact, cloud advertising will be the largest segment of the global cloud services market, growing 13.6 percent in 2016 to reach $90.3 billion in 2016.
"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 organizations pursuing a digital business strategy."
Worldwide Public Cloud Services Forecast (Billions of U.S. Dollars)
2015 Growth (%)
2016 Growth (%)
Cloud business process services (BPaaS)
Cloud application services (SaaS)
Cloud application infrastructure services (PaaS)
Cloud system infrastructure services (IaaS)
Cloud management and security services