Cloud services industry continues to make gains in 2018
Most companies don’t need to be convinced that cloud computing is the next big thing in enterprise tech, and there’s still alot of room for all involved to grow, according to a new analysis from Gartner out this week.
In 2018, cloud computing which for the purpose of this discussion means all the aaSes, infrastructure, platform, and software will end up a $186.4 billion market very soon it has been preddicted. Thats over a 20% jump in comparions to $150 billion in 2017. The growth is led by cloud infrastructures like Amazon Web Services and Microsoft Azure, which are likely to grow 35 percent in 2018 to over $40 billion.
SaaS remains the largest cloud category, which makes perfect sense as a generation of enterprise software installed on on-premises servers converts over to cloud-based services. The SaaS market is likely to hit $73.6 billion in 2018, up more than 2o percent, and there’s still alot of other growth elsewhere prodicted. Gartner believes that 45 percent of total application software spending will be SaaS-based by 2021.
Only last year at a Cloud Tech Summit Morgan Stanley’s Brian Nowak forsaw cloud computing “at an inflection point,” where growth was positioned to accelerate as cloud vendors started pushed hard beyond the early adopters into a more mainstream area of the information technology services market. Nowak, a known cloud evangelist predicted that cloud services would account for almost half of the market by 2020. He did also say that he felt a slowdown was coming beyond that.
Here in 2018 there is no slowdown happening or even hints of one. Soon a better idea of how the first quarter of this year went for the cloud industry as corporate figures and results start to appear. Expectations are understandably optimistic.