Public Cloud Spending Accelerates

Though software as a service remains the biggest single segment of the cloud computing market, infrastructure as a service might have the highest growth rates.

If one counts both hardware and software spending to support cloud computing, plus actual services sold to retail customers, the cloud computing industry generated $148 billion of revenues between August 2015 and September 2016, growing by 25 percent, year over year.

According to Synergy Research Group, that period was the first when industry revenues were generated more from actual cloud computing services than spending to create that capability.

In early 2017, cloud service markets now are growing three times faster than cloud infrastructure hardware and software investments. Part of the reason for that is that most spending on private cloud services involves enterprises buying and deploying their own facilities.

From the fourth quarter of 2015 to the third quarter of 2016 total industry spending on hardware and software to build cloud infrastructure exceeded $65 billion, with spend on private clouds accounting for over half of the total spend.

Investments in infrastructure by cloud service providers helped them to generate almost $30 billion in revenues from cloud infrastructure services (IaaS, PaaS, hosted private cloud services) and over $40 billion from enterprise SaaS.

Cloud 2016

source: Software Strategies
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