DataCenterNews Asia Pacific logo
Specialist data center news for Asia Pacific
Story image

Public cloud services market thriving, but dominated by the big guys

FYI, this story is more than a year old

The flourishing public cloud services market is being heavily influenced by the leaders as their share of the pie continues to grow.

According to the International Data Corporation (IDC), the worldwide public cloud services market grew 29 percent in 2017 to reach a total of US$117 billion. While this growth was actually lower than 2016's effort, revenue growth of the top 16 providers by market share increased during this period.

The cumulative share of the 16 market leaders went from 47.9 percent in 2016 to 50.7 percent in 2017 to represent more than half of the all the worldwide public cloud services spending.

The majority of public cloud services revenue is still attributed to providers in the United States with 60 percent, however, this is a decrease from 62 percent in 2016 as adoption and growth in other regions increased their contribution.

Furthermore, IDC expects this trend to continue to increase over the next few years with the revenue more dispersed as new regional services and expansion by global players become increasingly strong factors in driving growth.

"2017 was a pivotal year in the expansion of public cloud service adoption, as public cloud services continued to defy the usual laws of market gravity: for the fifth straight year, spending growth remained at a scorching 29 percent, even as the size of the market has tripled over that time," says IDC chief analyst and senior vice president Frank Gens.

"2017 also saw some intriguing market share shifts among the major players, as all of them have significantly increased their focus on the cloud, and competitive pressure has ratcheted way up. The next three years will determine IT industry leadership for the next two decades and beyond."

IDC asserts the Software-as-a-Service (SaaS) segment can be summed up by supplier consolidation, maturing customer adoption, and steady growth. Enterprise Resource Management (ERM), Customer Relationship Management (CRM), and Collaboration applications contributed the most to its growth as they accounted for 64 percent of all SaaS-delivered applications.

Within the SaaS applications, Supply Chain Management (SCM) and Content represented the fastest growing categories with 27 percent and 28 percent respectively.

"The SaaS delivery model accounts for 68 percent of worldwide public cloud services revenue. SaaS applications continue to grow at a respectable 22 percent, reaching $75 billion in 2017 and forecast to reach $163 billion by 2022. In the System Infrastructure Software (SIS) category, security SaaS accounts for 42 percent of all revenue, with a five-year CAGR of 13 percent through 2022,” says IDC SaaS and Cloud research director Frank Della Rosa.

“While new SaaS companies launch regularly, technology mainstays like Salesforce, Microsoft, and Oracle remain atop the list of SaaS providers.

Despite very encouraging expansion, year on year growth actually slowed slightly in the Platform-as-a-Service (PaaS) segment from 48 percent in 2016 to 47 percent in 2017. This accounted for a little over $17 billion revenues for the year, and IDC expects this growth to continue as awareness of new development methods expands while the barriers to public cloud adoption decrease.

"Demand for applications has continued to fuel the growth of PaaS services to improve developer productivity. Emerging technologies like containers and serverless computing are changing the delivery and consumption model of PaaS services. As more companies demonstrate value from platforms, adoption rates will remain high in the near future," says IDC Platform-as-a-Service research director Larry Carvalho.

And then finally in the Infrastructure-as-a-Service (IaaS) segment, worldwide growth of revenue was driven by enterprise adoption and growth in new regions. Like the PaaS sector, revenue grew but revenue growth itself actually slowed, from 45 percent in 2016 to 40 percent in 2017 as the market reached a total size of just under $25 billion in 2017.

"Enterprise usage of public cloud IaaS is still in its early phase. There is strong interest among enterprise IT organisations to increase use of public cloud IaaS and the major providers continue to address barriers for large scale adoption,” says IDC Public Cloud Infrastructure-as-a-Service research director Deepak Mohan.

“These factors will continue to drive workload deployments in public cloud IaaS, and the market can be expected to grow at the current rate for at least the next two years.

Related stories
Top stories
Story image
Network Management
Data is growing at breakneck speed, but are we optimising its value?
Data lies at the heart of digital transformation, as every digital touchpoint translates to a data point. In this digital-first world, data is being created everywhere today – at breakneck speeds.
Story image
Data Protection
Cloudflare brings Data Localisation Suite to more APAC businesses
This allows any business in these countries to service their data locally while benefiting from the speed, security, and scalability of Cloudflare’s global network.
Story image
Data Centre Cooling
The world is heating up, but data centres should keep their cool
With the world heating up, the challenge of keeping data centres cool becomes more complex, expensive and power intensive.
Story image
Artificial Intelligence
ASUS Servers announce AI developments at NVIDIA GTC
The Taiwanese multinational now offers NVIDIA-certified servers with H100 Tensor Core GPU and AI enterprise software suite.
Story image
Sustainable IT
Equinix partners NUS to use hydrogen tech in data centres
The partners will develop hydrogen fuel technologies for green data centres in tropical climates, and for use in Equinix’s global network.
Story image
IT Automation
Juniper Networks announces expansion of Apstra Software with Apstra Freeform
The newly announced Apstra Freeform technology will give customers the ability to manage and automate operations for data centers regardless of the architecture.
Story image
Software-as-a-Service
Honeywell launches Data Center Suite for business outcomes
Honeywell has launched its Data Center Suite, a portfolio of outcome-based software offerings to help data centre managers and owners.
Story image
Cloud
SoftIron announces its newest flagship offering, HyperCloud
SoftIron has announced HyperCloud, the world's first full turnkey, completely integrated and supported Intelligent Cloud Fabric and the company's newest flagship offering.
Story image
Superloop
Stellar financial result after major strategic moves by Superloop
We get a glimpse under the hood at the financial results from 2022 for the connectivity giant Superloop.
Story image
Storage
DCI Data Centers breaks ground on AKL02 center
DCI Data Centers has commenced construction on Auckland's largest data center.
Story image
Network Infrastructure
Vertiv launches solutions to better manage edge computing
Vertiv has introduced new power and cooling solutions for the edge of the network, including the addition of lithium-ion models to a leading on-line UPS family.
Story image
Firewall
Fortinet unveils compact firewall for hyperscale data centres, 5G networks
"Fortinet’s dedication to pushing the boundaries of what is possible in security performance has yielded the most powerful compact firewall yet."
Story image
Data analytics
Srisawan Hospital to enhance patient experience with InterSystems TrakCare
The new Srisawan Hospital in Bangkok has chosen InterSystems TrakCare to help create enhanced patient experiences and promote further digital engagement.
Story image
Gartner
SnapLogic named Visionary in two Magic Quadrant categories
SnapLogic has announced that it is the only iPaaS (Integrated Platform as a Service) vendor to be named a Visionary in two Magic Quadrant categories.
Story image
Data center
Australia’s data centre pioneer still leading after 22 years
We look at the fascinating success of Macquarie data centre's over its 22 year life span and how they continue to innovate in a highly contested sector.
Story image
Melbourne
Equinix invests $23m to expand ME2 data centre in Melbourne
Equinix has completed the second phase expansion of its ME2 International Business Exchange data centre, located in Port Melbourne.
Story image
Edge Computing
NTT launches Edge-as-a-Service to accelerate automation
"Minimum latency, maximum processing power, and global coverage are exactly what enterprises need to accelerate their digital transformation journeys.”
Story image
Sustainable IT
Empyrion DC announces 40MW green data center in South Korea
Empyrion DC has announced it is developing a 40MW green data center in Gangnam, Seoul, South Korea (GDC).
Story image
Machine learning
Oracle announces MySQL HeatWave for Amazon Web Services
MySQL HeatWave is a service that combines OLTP, analytics, machine learning, and machine learning-based automation. 
AWS Marketplace
Whitepaper: A practical guide for mitigating risk in today’s modern applications
Link image
Story image
Hyperscale
Growth in hyperscale data centres to increase shortage of IT workers
New Zealand's tech worker capacity is set to come under increasing pressure as the number of hyperscale data centres grows.
Story image
Data
Talend announces support for Amazon Redshift Serverless
Talend has announced its support for Amazon Redshift Serverless, with the company saying the integration reinforces its commitment and leadership in supporting businesses.
Story image
Cloud
DCI plans to build new cloud edge data centre in Canberra
DCI is one of the first to commit to the Precinct which has a focus on defence, space, cybersecurity and high-tech manufacturing sectors.
Story image
Software-as-a-Service
ManageEngine unveils SaaS availability of Analytics Plus
ManageEngine's Analytics Plus is now available as a software as a service (SaaS) offering, enabling users to set up a completely functional and integrated analytics platform anywhere in under a minute.
Story image
Data Protection
iseek secures Queensland Government data centre contract
iseek secures the Queensland Government's core network data centre as-a-service contract after a competitive procurement process undertaken by the CITEC.
Story image
Multi-cloud
VMware advances multi-cloud management with VMware Aria
Managing apps and infrastructure in a multi-cloud, especially public cloud, and multi-technology environment is complex.
Story image
Data Centre Maintenance / Management
Schneider Electric backs new Leading Edge data centre in Australia
As a result of the new project, regional Australian businesses and communities will likely have greater access to distributed cloud networks.
Story image
Digital Transformation
NTT launches its Cyberjaya 6 data center in Malaysia
NTT expands its hyperscaler footprint in Malaysia with its sixth data center facility, supporting the growing digital economy.
Story image
Partnerships
NCS, FPT Software launch Strategic Delivery Centre in Vietnam
The new partnership is designed to support increasing demand for high quality digital services across the region.
Story image
Data center
Macquarie Asset Management acquires stake in ST Telemedias VIRTUS Data Centres
"We will further strengthen VIRTUS' focus on sustainability by backing investment in its technology and enhancing the lifecycle management of its equipment."
Story image
Digital Transformation
Nanyang Technological University Singapore builds digital brand presence
Leveraging the customisation features of Sitefinity DX, non-technical users could upload content and create design pages and boost work productivity. 
Story image
Google Cloud Platform
Google Cloud to open first cloud region in NZ - among others
Google Cloud has announced plans to bring three new cloud regions, one each in New Zealand, Malaysia and Thailand.
Story image
Update
InterSystems releases updates to its IRIS data platform
Provider of next-generation solutions InterSystems has announced a series of new releases to its award-winning InterSystems IRIS data platform.
Story image
Software Defined Wide Area Network
Axiata, Versa Networks partner for enterprise SASE in Asia
Axiata has partnered with Versa Networks to deliver Secure Access Service Edge (SASE) technology to rapidly digitalising Asian enterprises.
Story image
Software-as-a-Service
Cloudera launches all-in-one data lakehouse cloud service
CDP One makes it faster, easier and less risky for businesses to move to the cloud and migrate existing workloads to a modern data architecture.
Story image
Storage
Seagate announces next gen advanced storage arrays
The new Exos X systems feature up to twice the performance of the previous generation and enhanced enterprise-class durability, the company states.
Story image
Sustainable IT
New report calls for tighter guidelines on data centre sustainability
A new Cushman & Wakefield report is calling for water consumption and carbon emissions to be measured in addition to power usage.
Story image
Startup
Zetaris is changing the way we think about data virtualisation
Zetaris was launched on the Microsoft Marketplace and Ingram Micro Cloud Marketplace in Australia in 2020 and has since expanded into nine global markets.
Story image
Microsoft
VMware extends collaboration with Microsoft for enterprise workloads in Azure
Mutual customers will have the choice to purchase Azure VMware Solution through the VMware Cloud Universal program.
Story image
5G
Worldwide 5G mobile data traffic exploding - report
"With 5G, there is a wider range of deployment scenarios, forcing vendors to provide comprehensive solutions to support every need."
Aws Marketplace
Learn how to implement a backup and recovery plan for a new generation of Kubernetes-based modern applications
Link image
Story image
Optical Networking
NEC predicts AON as a next-generation infrastructure
NEC's open optical transmission devices support multi-vendor configurations, allowing customers to procure and combine equipment from multiple vendors.