Public cloud to see massive growth in 2016

Tuesday 26 January 2016

Research has suggested that the public cloud sector will see huge growth in 2016 as more and more companies want Infrastructure as a Service (IaaS).

It is thought that the public cloud market could reach $204 billion. In 2015, the research suggested that it would reach $175 billion, but this forecast has been increased by 16.5%. It is believed that IaaS will fuel the growth, with IaaS on its own reaching $22.4 billion – a growth of 38.4%. This latest research from Gartner is in line with other research in the field.

Other sectors that are set to see huge growth include cloud advertising, a market that could reach $90.3 billion this year, which represents a growth of more than 13%. The research director at Gartner, Sid Nag, has said that this growth is set to continue throughout 2017.

The growth indicates that businesses are moving away from standard legacy IT services and are taking the plunge with cloud computing services. The increased use of IaaS has been attributed to businesses leaving datacentre build-outs. Gartner is advising new providers entering the public cloud sector to focus on creating something different than is already offered by the main providers.

IaaS is not the only cloud sector that will see growth this year, with predictions stating that the SaaS sector is going to increase too. Forecasts suggest that in 2016 it will reach $37.7 billion, an increase of 20%. Estimates put the value of the public cloud sector in 2015 at $110 billion.

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