Report: Cloud services market expected to grow


iStock 000018713708XSmallA recent study from Gartner expects the worldwide cloud IT services market will grow 19.6 percent in 2012, surpassing the $109 billion mark. The significant increase in demand for cloud services is the result of businesses of all sizes looking to upgrade their systems to the cloud, with less emphasis on infrastructure maintenance and a stronger focus on interoperability and collaboration.

Details of the report
According to the Gartner study, business process services account for a large segment of the cloud services enterprises are investing in, totaling 77 percent of the total market. Infrastructure as a service is the fastest cloud services segment and is predicted to grow 45.4 percent in 2012 alone.

"The cloud services market is clearly a high-growth sector within the IT marketplace," said Ed Anderson, research director at Gartner. "They key to taking advantage of this growth will be understanding the nuances of the opportunity within service segments and geographic regions, and then prioritizing investments in line with the opportunities."

The Gartner report revealed business process services is the largest segment of the market because of the inclusion of cloud advertising as a subsegment, which is projected to reach $84.2 billion in 2012, up from $72 billion in 2011. Cloud advertising made up 47 percent of total public cloud services market in 2011, making it the biggest identifiable subsegment in the next four years.

By 2016, cloud advertising will still make up 47 percent of the market, while software as a service (SaaS) will surpass $14.4 billion this year and infrastructure as a service (IaaS) will surpass $6.2 billion. In the next four years, IaaS will grow to equal the SaaS market share, while the application infrastructure services will also grow rapidly into 2016.

Furthermore, the platform as a service segment of the market is expected to reach $1.2 billion in 2012, while the cloud management and security services segment is anticipated to grow to $3.3 billion this year. Cloud management and security services represent a new segment for cloud services, IT operations management and storage management.

North America is still the largest region with regard to cloud services consumption in the world. The continent is expected to produce the largest increase in market size over the next four years, while the highest regional growth rates will be in the Asia Pacific and Latin America markets.

Are you ready for the cloud?