SaaS and IaaS Fueling Public Cloud Growth, Gartner Finds

By: Joe Hewitson| - Leave a comment

Software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS) are quickly becoming pillars of modern IT, but a new report by Gartner reveals just how big an impact they’re having. The study paints a picture of a public cloud services market that’s expected to crest $260 billion in revenue by the new year.

That impressive figure would mark an 18.5 percent increase from what we saw at the end of 2016. As it turns out, SaaS and IaaS are teaming up to fuel this substantial growth.

The Importance of SaaS

Gartner’s report notes that the ability of SaaS to drive improvement in business processes and outcomes has led to feverish adoption from organizations seeking to expand their application portfolio. This increased rate of adoption has experts eyeing a 21 percent growth of SaaS revenue this year compared to 2016. This growth could help the technology reach $58.6 billion in revenue by year’s end.

“Final data for 2016 shows that SaaS revenue was far greater in 2016 than expected, reaching $48.2 billion,” says Sid Nag, research director at Gartner, in the official press release. “SaaS is also growing faster in 2017 than previously forecast, leading to a significant uplift in the entire public cloud revenue forecast.”

IaaS Leading the Way

Although SaaS enterprise adoption is outpacing expectations, IaaS could be the real winner when the dust settles. Gartner expects revenue from the technology to swell upwards of $34.7 billion this year. That mark represents a staggering 36.6 percent growth over the previous mark set in 2016.

The growth of these as-a-service technologies is a vote of confidence for enterprise cloud adoption and the future of public cloud growth.

“As of 2016, approximately 17 percent of the total market revenue for infrastructure, middleware, application and business process services had shifted to cloud,” Nag points out in his statement. “Through 2021, this will increase to approximately 28 percent.”

For the glass-half-empty folks, there remain a few hurdles in the way of complete public cloud adoption: For example, a recent study found 74 percent of IT professionals noted cybersecurity as the main concern preventing a move to the public cloud, TechRepublic reports. Still, with such incredible revenue growth and uptick in adoption this year, public cloud services are poised for great success as 2018 approaches.

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About The Author

Joe Hewitson

News Writer

With a degree in Applied Computing Technology and over a decade of service in the IT and Software Development industries, Joe Hewitson has acquired a keen ability to write about emerging technologies and the impact they have on businesses in many different industries. Accompanying his love for all things tech is a passion for writing informed and engaging pieces in a unique and easy to understand voice. Living in the beautiful arms of the Rocky Mountains, Joe is an avid outdoorsman and enjoys running, biking, and fishing.