Numbers don’t lie: Cloud field is growing fast and it will reach the value of $ 206,2 billion in 2019.
Today we will talk about Cloud, but we will do it through numbers. We are hearing more and more about Cloud Computing and its growth at global level lately. It seems that companies have come to understand that Cloud services can bring significant benefits and there are few firms that are still not using a Cloud strategy nowadays. One thing is for sure, the Cloud is gaining the ICT market globally. Although in the last 5 years the market has grown exponentially, and the experts say that it will keep growing at double-speed in the next decade, the Cloud spending is still just 5% of the global IT spending. But which are the exact numbers? Let’s see together some data to draw up a picture about Cloud Computing worth in the current market and the forecasts of its growth.
Studies estimate that in 2019 Cloud Computing market will achieve $206,2 billion. The growth compared to 2018, when the value was about $175,8 billion, is of 17,2 %. Last years the biggest slice was taken by SaaS (Software as a Service) solutions with a share of 41%. Researches predict a further growth of the SaaS segment that in 2019 will be almost the half of the overall Cloud Computing market.
“Cloud Forecast 2018” by Gartner states the following allocation of Cloud Computing current industry:
- 41% Software as a Service (SaaS)
- 26% Business Platform as a Service (BPaaS)
- 18% Infrastructure as a Service
- 9% Platform as a Service (PaaS)
- 6% Management and Security Services
Infrastructure as a Service (IaaS)
First of all, what is an Infrastructure as a Service (IaaS) solution? IaaS enables the customer to access directly to the infrastructure and perform some activities. The Cloud provider makes available to the client a virtual machine (or more virtual machines, if it’s a complex infrastructure) and allows billing with the pay-per-use model, according to which the customer pay only the virtual resources actually used. With IaaS, companies has the access and the control on the Cloud infrastructure. The IaaS segment is still very competitive on the current market. In the last years it has grown rapidly, from $3 billion in 2010 to $31 billion in 2018. In 2019 the share is expected to reach $40 billion.
Software as a Service (SaaS)
Software as a Service solutions instead concerning all the services which allow the software distribution via web. In that case the customers have no access nor control on the Cloud system, unlike a IaaS solution. SaaS is a turn-key solution to use software programs easily and avoid all the issue related to the IT infrastructure management. As we saw above, it is the greatest market niche among the different Cloud services available (41%). Software Cloud market has reached the value of $72,2 billion in 2018, with a growth rate of 22,7%. Gartner claims that SaaS market surpass $113.1 billion by 2021 at a compound annual growth rate of 12.6%.