Public cloud services market to hit revenues of $66 billion

Public cloud services market to hit revenues of $66 billion

The global public cloud services market will more than triple in size over the next five years to reach revenues of $66 billion in 2016, according to Ovum.

In a new forecast*, the independent technology analyst finds that the market will see a compound annual growth rate (CAGR) of 29.4 per cent from the $18 billion it will reach at the end of 2011.

Ovum cloud computing analyst Laurent Lachal commented: “The global public cloud services market will explode over the next five years as uptake soars worldwide.

“However, although the market size will see strong growth, the evolution of cloud computing within enterprises and the IT trends that follow will happen more slowly.”

Ovum finds that North America will continue to dominate the global market with a 50 per cent share in 2016, albeit down slightly on the 54.6 per cent it held in 2011. The market in North America will grow at a CAGR of 27.1 per cent between 2011 and 2016, increasing from $10 billion to hit $33 billion.

Asia-Pacific will increase its share from 16 per cent in 2011 to 18.8 per cent in 2016. The region will grow at a CAGR of 33.9 per cent from 2011 to 2016, from $2.9 billion to $12.4 billion.

Meanwhile, Europe, the Middle East and Africa will remain the second-largest market over the forecast period. The region’s share will increase from 27 per cent in 2011 to 29 per cent in 2016. Western Europe will grow at a CAGR of 31.2 per cent from 2011 to 2016 to reach $17.2 billion, up from $4.4 billion in 2011. Eastern Europe will grow at a CAGR of 31 per cent from 2011 to 2016 to reach $1.5 billion, up from $396 million in 2011. The Middle East and Africa will increase at a CAGR of 31.7 per cent from 2011 to 2016, rising from $114 million to $451 million.

In terms of the cloud computing service lines, SaaS will shrink from 87 per cent of the market in 2011 to 62 per cent in 2016 due to the rise of IaaS and PaaS, which will grow from nine per cent and five per cent, respectively, to 23 per cent and 16 per cent at the end of the forecast period.

According to Lachal, although the market is growing at a fast pace and players such as Amazon and Google are making much progress, the impact of public clouds will not be to render IT departments obsolete, but rather to shift their focus.

He commented: “Shifts will include taking a more holistic approach to connecting networks, hardware and software. IT departments will also reduce their emphasis on maintenance and increase their innovation, while being encouraged to take more risks, by giving employees the capacity to tackle high-reward ventures.

“But, as ever, preparation is the key to ensuring that cloud computing delivers a positive outcome.”

 -ENDS—

NOTES TO EDITORS

*Ovum’s Public Cloud Services Global Market Forecast Model

To arrange an interview or for further details regarding this release please contact Kelly Livesey in the Ovum press office on +44 (0)161 238 4081, or email Kelly.livesey@ovum.com

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Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support. Ovum is part of the Informa Group.