By Asia Cloud Forum editors | Sep 20, 2012
The public cloud services market is forecast to grow 19.6% in 2012 to total US$109 billion worldwide, according to research company 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 prioritizing 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 US$84.2 billion in 2012, up from US$72 billion in 2011. In 2011, cloud advertising represented about 47% 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 US$14.4 billion in 2012, while IaaS is forecast to grow from US$4.3 billion in 2011 to US$6.2 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 US$1.2 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 US$3.3 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).