Public Cloud Computing Market Set to Swell

by Jordan Richardson on September 19, 2012

According to research firm Gartner, the public cloud computing market is set to grow 19.6 percent to reach $109 billion in 2012. This is largely because of the infrastructure segment, which accounts for about 45.4 percent of the market.

Infrastructure-as-a-service (IaaS) is the fastest-growing segment of the market, but business process services (BPaaS) still owns 77 percent of the total market and will still experience growth as cloud computing becomes more popular.

“BPaaS is the largest segment primarily because of the inclusion of cloud advertising as a sub-segment. BPaaS is forecast to grow to $84.2 billion in 2012, up from $72 billion in 2011,” Gartner said.

Because cloud computing eliminates the need for physical infrastructure and the ownership of IT infrastructure, it will likely enjoy more popularity over the coming years. And the fact that it allows companies to utilize services on a pay-per-use basis is an added bonus.

According to Gartner’s numbers, cloud advertising accounted for about 47 percent of the total public cloud services market in 2011. It will continue to operate at those numbers through 2016, while other areas are expected to grow considerably. Software-as-a-service (SaaS) is a large segment in its own right and should grow to $14.4 billion by the time the books are closed on 2012.

“The total public cloud services market size in 2011 was $91.4 billion and it will grow to $206.6 billion in 2016. As the market grows, IaaS will become a larger part of the overall market, while the market share of cloud management and security services will grow as well,” Gartner research director Ed Anderson said.

North America currently leads the world in turning to cloud services, at least so far. It experienced the largest increase in market size in 2012, but there is significant growth in the Asia-Pacific region and in Russia. Latin America is also turning to the cloud in considerable numbers, but North America should still account for 61 percent of the growth from 2010 through 2016. Due to changing economics, most of Europe is still sitting out with respect to the cloud.

Amid reports that many, including government contractors who view it as a stable market, are shifting to the cloud, it doesn’t look like it’s going anywhere. These growth numbers indicate that cloud computing is catching on, suggesting that it has “survived its hype phase” and is set for long-term, significant growth.

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