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90% of organisations to demand IaaS & PaaS from same provider

15 Sep 2018

Public cloud is set to continue its meteoric growth with no peak in sight – yet.

According to Gartner, this year the global public cloud services market is set to grow 21 percent, pulling in $175.8 billion to far exceed 2017’s stake of $145.3 billion. In 2019 the growth is projected to slow slightly to the still considerable 17 percent, reaching the grand total of US$206.2 billion.

Within the market, the biggest mover is the cloud system infrastructure services (IaaS) sector, which Gartner expects will hum along with 27.6 percent growth in 2019 to post $31 billion in revenue.

Furthermore, Gartner expects that by 2022 the vast majority (90 percent) or organisations purchasing public cloud IaaS will do so from an integrated IaaS and platform as a service (PaaS) provider, utilising both services from the same provider.

"Demand for integrated IaaS and PaaS offerings is driving the next wave of cloud infrastructure adoption," says Gartner research director Sid Nag.

“We expect that IaaS-only cloud providers will continue to exist in the future, but only as niche players, as organizations will demand offerings with more breadth and depth for their hybrid environments. Already, strategic initiatives such as digital transformation projects resulting in the adoption of multicloud and hybrid cloudfuel the growth of the IaaS market."

While IaaS is growing the fastest, SaaS still retains the largest share of the market by quite a margin with revenue expected to grow 17.8 percent in 2019 to reach $85.1 billion.

“The increasing adoption of SaaS applications and other cloud services impacts the management, dissemination and exploitation of enterprise content,” says Gartner research vice president Craig Roth.

“Organizations are steadily — but not exclusively — shifting their content environments to SaaS. Gartner expects that by 2019, the current enterprise content management(ECM) market will devolve into purpose-built, cloud-based content solutions and solution services applications.”

The business process as a service (BPaaS) category is expected to rise 7.9 percent in 2019 to claim $50.3 billion.

According to Gartner, buyers are increasingly demanding deep domain expertise, technology and global deployment capabilities from their providers in addition to service portfolios that bridge legacy offerings, and this is especially apparent in the BPaaS category.

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