NEW YORK - Sept. 24, 2019 -Most of us had a sense Cloud had long since become the Olympus of IT, and while pegging Cloud's growth is always a bit fuzzy, here's a compelling prediction to chew on: Cloud spending will double in under four years.
And just as the mythical Greek Earth goddess Gaia bore the Titans (along with Nereus, Thaumus, Typhon, and Python), the revenues of Cloud's offspring -- seven key service and infrastructure market segments -- have already passed $150 billion, representing 24% over the first half of 2018.
"Cloud has opened up a range of opportunities for new market entrants and for disruptive technologies and business models" says Synergy Research Group Chief Analyst, John Dinsdale.
"Amazon and Microsoft have led the charge in terms of driving changes and aggressively growing cloud revenue streams, but many other tech companies are also benefiting" adds Dinsdale. "The flip side is that some traditional IT players are having a hard time balancing protection of legacy businesses with the need to fully embrace cloud."
Check out this release on YouTube (https://youtu.be/JrbGd0_Lt9k)
Here's some perspective on numbers: Spending on cloud services is now far greater than spending on supporting data center infrastructure.
Drilling down into the different cloud service segments offers some context.
Infrastructure as a Service, and Platform as a Service had the highest growth rate at 44%. Enterprise Software as a Service grew 27%. Unified Communications as a Service expanded 23%. While Hosted Private Cloud Infrastructure Services swelled 20%.
At the same time, spending on hardware and software for public, private and hybrid infrastructure widened 10%, and cloud provider spending on colocation and data center leasing rose 17%.
Across the whole cloud ecosystem, companies that featured the most prominently among the first half market segment leaders were Microsoft, AWS, Dell EMC, Cisco, HPE and Google.
Other major players included Salesforce, Adobe, VMware, IBM, Digital Realty, Equinix and Rackspace. In aggregate these companies accounted for well over half of all cloud-related revenues, says SRG.
What's behind the growth? Infrastructure spending supports internet services such as search, social networking, email, e-commerce, gaming and mobile apps, and those cloud providers need somewhere to house their infrastructure. So spending on data center leasing and colocation services continue to grow strongly.
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