Worldwide cloud services market: USD109bn in 2012

COMPUTING

|
Image: By BiztechAfrica
Worldwide cloud services market: USD109bn in 2012

The public cloud services market is forecast to grow 19.6% in 2012 to total USD109 billion worldwide, according to Gartner.

Business process services (also known as business process as a service, or BPaaS) represent the largest segment, accounting for about 77% of the total market, while infrastructure as a service (IaaS) is the fastest-growing segment of the public cloud services market and is expected to grow 45.4% in 2012.

"The cloud services market is clearly a high-growth sector within the overall IT marketplace," said Ed Anderson, research director at Gartner. "The key to taking advantage of this growth will be understanding the nuances of the opportunity within service segments and geographic regions, and then prioritising investments in line with the opportunities."

BPaaS is the largest segment primarily because of the inclusion of cloud advertising as a subsegment. BPaaS is forecast to grow to USD84.2 billion in 2012, up from USD72 billion in 2011. In 2011, cloud advertising represented about 47 per cent of the total public cloud services market, making it the biggest identifiable subsegment in the forecast. Through 2016, cloud advertising will continue to account for about 47% of total public cloud services spending.

Software as a service (SaaS) is the next-largest segment and is forecast to grow to USD14.4 billion in 2012, while IaaS is forecast to grow from USD4.3 billion in 2011 to USD6.2 billion in 2012. In 2010, the IaaS market was less than one-third the size of the SaaS market. By 2016, the IaaS market will grow to almost equal the size of the SaaS market.

Growth in application infrastructure services (also known as platform as a service, or PaaS) will also be high, although it is a smaller market relative to the other segments. PaaS is strategic and considered to be a critical growth driver for other segments, including BPaaS and SaaS. The PaaS segment is forecast to grow to USD1.2 billion in 2012. Cloud management and security services constitute a new forecast segment comprising cloud security services, IT operations management (ITOM) and storage management (including backup and recovery services). The cloud management and security services segment is forecast to grow to USD3.3 billion in 2012.

Although North America is the largest region and is expected to produce the largest absolute increase in market size, Gartner expects the highest regional growth rates in emerging Asia/Pacific (including India and Indonesia), greater China, Eurasia (including Russia) and Latin America (including Argentina, Mexico and Brazil).

Western Europe is forecast to grow the slowest during the forecast period, largely due to ongoing eurozone economic issues, while growth will also be lower in mature Asia/Pacific markets due to ongoing economic challenges in the Japanese market.

North America will account for the greatest percentage of absolute growth in the cloud services market, with 61 per cent of all growth from 2010 through 2016. Western Europe will follow, with 17 per cent of absolute cloud services growth over the same period. This highlights the dominance of North America and Western Europe in the development, availability and adoption of cloud services.

High growth rates will occur in emerging markets, including the top three growth countries of India, Indonesia and China. However, 79% of spending increases will come from North America and Western Europe. For cloud services providers, this will require a strategic approach when considering both high-volume and high-growth markets. Both will be important in the development of sustained, global strategies.

"The total public cloud services market size in 2011 was USD91.4 billion, and it will grow to USD206.6 billion in 2016. As the market grows, IaaS will become a larger part of the overall market, while the market share of cloud management and security services will grow as well," said Mr Anderson. "When targeting specific markets within the cloud services marketplace, we recommend evaluating both potential market size and growth rates. These will vary by segment, subsegment, region and country."



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE COMPUTING NEWS

Managed services born again in Africa

Thanks to the ever-evolving nature of technology and the rapid growth of cloud services in Africa, managed services has in effect been born again, says Gondwana International Networks (GIN) and iWayAfrica. Read More

CWG, Vodacom canvass local content in ICT

Olusola Teniola, Austin Okere and Mrs Newton-Denila Smarting from the success the Local Content Act has recorded in Nigeria’s oil and gas industry, CWG and Vodacom Business Nigeria have canvassed its application to the ICT industry. Read More

Teachers recognised for best use of ICTs

The MTN Foundation and Cameroon’s Ministry of Secondary Education have recognised teachers who make the best use of ICTs in education. Read More

Use ICTs to boost entrepreneurship, DRC youth told

Young people in the Democratic Republic of Congo (DRC) have been told to use the information and communication technologies (ICTs) in their quest to boost their entrepreneurship initiatives. Read More

LINKZ ICT challenge getting bigger

The fourth annual Botho University LINKZ ICT challenge this year attracted a sizeable number of students from both the tertiary and secondary school students.  Read More

Closing the ‘mobile’ gap in your DR strategy

As technology has evolved, vulnerabilities have opened up in many organisations’ DR strategies and infrastructure, particularly with regard to mobility, says Drive Control Corporation. Read More

Congo’s financial sector ‘falling in love’ with ICTs

The financial sector in Congo-Brazzaville seems to be falling in love thick and fast with ICTs. Read More

Adapt to ICTs or die, DRC postal service told

On Thursday 9 October 2014, while the world was celebrating World Postal Day, a top official of Société Congolaise de Postes et Télécommunications (SCPT) dropped a bombshell, saying that the country’s postal service needed to adapt to the information and communication technologies (ICTs) if it hoped ... Read More

Partnership enables immediate delivery of cloud services

On the back of its partnership with cloud distributor Cloud On Demand, local cloud service provider Alto Africa has dramatically increased the speed and delivery of its shrink-wrapped cloud solutions to customers. Read More

Oracle launches capacity-building programme to close IT skills gap in Africa

Oracle Corporation has announced an initiative designed to enrich and increase the skills capacity of IT practitioners in Africa.  Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

Growing African focus on data securityGrowing African focus on data security

Beachhead Solutions’ new SA and Mauritius country manager explains the challenges and solutions around securing customer data and compliance with new personal information legislation.

IN DEPTH

Africa lags on digital migration Africa lags on digital migration

Only three African countries have so far completed the digital migration process, and serious issues are hampering the migration in other nations.  

COMPANY NEWS

SAP accelerates shift to the Cloud with 41% revenue growth in third quarter

SAP has once again raised its revenue outlook, reporting broad market adoption of SAP HANA and its ‘Run Simple’ strategy validated.