Research Suggests Cloud Market Growing at 28% Per Annum
January 9, 2016
New research suggests that the cloud market is growing at rate of 28% per annum. The research, offered by the Synergy Research Group, suggests the value of the cloud market has now reached $110 billion. Synergy Research Group, which has headquarters in Reno, Nevada, United States, specializes in acquiring strategic and market intelligence for the IT and telecom sectors. The company provides research services that enable its customers to “benchmark performance” and establish competitive advantage. Its latest research covered six cloud services and market segments.
The research considered operator and vendor revenue in the financial year that ended in September 2015. The research suggested that combined, all segments grew by 16%, while Public Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) grew the most with a growth rate of 51%. Areas that saw the next highest growth were private and hybrid cloud infrastructure services, which grew 45%. While expenditure of infrastructure hardware and software was more than that of cloud services, the research said that cloud services spends were catching up.
Key companies involved in the arena included Cisco, HPE, Amazon/AWS, Microsoft, IBM and Salesforce who during the period spent $60 billion on infrastructure hardware and software to build cloud services. Cloud service providers’ infrastructure investments enabled them to bring in $20 billion in cloud infrastructure revenues and $27 billion more from SaaS. “In many ways 2015 was the year when cloud became mainstream. Across a wide range of cloud applications and services we have seen that usage has now passed well beyond the early adopter phase and barriers to adoption continue to diminish,” suggested Jeremy Duke, the Founder and Chief Analyst of Synergy Research Group in the report.