The global public cloud services market will grow 17.2% in 2016 to total $208.6 billion, according to Gartner. In 2015, the market showcased a growth of $178 billion.
The cloud system infrastructure services (infrastructure as a service [IaaS]) will be the highest contributor to this growth, with an expected grow rate of 42.8% in 2016. The cloud application services (software as a service [SaaS]) will grow around 21.7% to reach $38.9 billion.
The IT modernization is a chief factor that drives this public cloud adoption. The cloud adoption not only reduces the cost involved in the infrastructure but also establish an IT environment capable of seamlessly adopting with the future applications and digital business processes. In terms of cost, the cloud adoption saves 14% of the organizations’ budget. The major challenge will be the security and privacy concerns.
Commenting on the increasing security risks in the modern IT environment, Ed Anderson, research vice president at Gartner said, “More education is needed to help organizations overcome the hype associated with security concerns. This should be a key area of focus for providers in working with their clients to unlock the benefits of public cloud services.”
Besides the surge of cloud usage in the enterprise business, private cloud and hosted private cloud services will also increase in 2017, said Gartner. This increase of public and private adoption of cloud services will create a multi-cloud environment and there is a need to coordinate cloud usage using hybrid scenarios.
“We know that public cloud services will continue to grow. We also know that private cloud services (of various types) will become more widely used. Therefore, providers must focus on the top hybrid cloud challenges to be successful in meeting the growing demand for hybrid cloud solutions,” said Anderson.