The third quarter of 2019 is passing by and the cloud market is once again blooming with new products, services, acquisitions, mergers and of course, the gigantic revenues. Synergy Research Group, a pioneer in the research, published a half-yearly review of Cloud Services and Infrastructure market.
The report concluded that across seven key cloud market segments, operators and vendors racked up the revenue of more than $150 billion in just the first half of 2019. The $150 billion milestones is 24% higher than the first half of 2018. The following market segments are mentioned in order of their growth (as per the reports) as compared to last year:
1. Infrastructure-as-a-Service (IaaS) & Platform-as-a-Service (PaaS) (44%)
2. Enterprise Software-as-a-Service (SaaS) (27%)
3. Unified Communication-as-a-Service (UCaaS) (23%)
4. Hosted Private Cloud (20%)
5. Colocation & Leasing (17%)
6. Public Cloud (>10%)
7. Private & Hybrid Cloud (>10%)
One of the key findings that need everybody’s attention is that spending on cloud services is now greater than spending on supporting data center infrastructure. “Cloud is the new normal” fits here perfectly.
Cloud leaders and the major players
The report acknowledged the following companies as leaders: Microsoft, Amazon Web Services (AWS), Dell EMC, Cisco, HPE and Google; and following as major players: Salesforce, Adobe, VMware, IBM, Digital Realty, Equinix and Rackspace. The mentioned pool of leaders and major players accounted for more than $75 billion in revenue (half of the total market revenue). In other words, these companies shape the entire cloud landscape.
What do chief analysts think?
“Cloud-associated markets are growing at rates ranging from 10% to well over 40% and annual spending on cloud will double in under four years. Cloud is increasingly dominating the IT landscape,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “Cloud has opened up a range of opportunities for new market entrants and for disruptive technologies and business models. Amazon and Microsoft have led the charge in terms of driving changes and aggressively growing cloud revenue streams, but many other tech companies are also benefitting. The flip side is that some traditional IT players are having a hard time balancing the protection of legacy businesses with the need to fully embrace the cloud.”
The increasing growth of these markets depicts that operators and vendors are knocking every opportunity that arises out of customer demands. If you look at the second decade of the 21st century from the cloud’s perspective, what a time it has been for this technological advancement and the revenue numbers clearly show that. The rapid adaptation of cloud, increasing customer demands and hybrid ecosystems collectively confirms that cloud is not going anywhere anytime soon.
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