Cloud revenues growing 28% annually

Enterprise Innovation editors
18 Jan 2016

Operator and vendor revenues across six key cloud services and infrastructure market segments grew 28% over the 12 months ending in September to $110 billion, Synergy Research Group estimates.

Public IaaS/PaaS services had the highest growth rate at 51%, followed by private and hybrid cloud infrastructure services at 45%, but all of the segments grew by at least 16%.

Spend on infrastructure hardware and software still outpaces spend on cloud services, but the gap is narrowing rapidly. Companies that featured the most prominently among the market segment leaders are Cisco, HPE, Amazon/AWS, Microsoft, IBM and Salesforce.

From the fourth quarter of 2014 to the third quarter of 2015, total spend on infrastructure hardware and software to build cloud services exceeded $60 billion, with spend on private clouds accounting for over half of the total but spend on public cloud growing much more rapidly.

Investments in infrastructure by cloud service providers helped them to generate $20 billion in revenues from cloud infrastructure services (IaaS, PaaS, private & hybrid services) and a further $27 billion from SaaS, in addition to supporting internet services such as search, social networking, email and e-commerce.

UCaaS, while in many ways a different type of market, is also growing steadily and driving some radical changes in business communications.

“In many ways 2015 was the year when cloud became mainstream. Across a wide range of cloud applications and services we have seen that usage has now passed well beyond the early adopter phase and barriers to adoption continue to diminish,” said Synergy Research Group’s founder and chief analyst Jeremy Duke.

Synergy Research Group chief analyst John Dinsdale added that cloud technologies are now generating massive revenues and high growth rates that will continue long into the future.

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