Gartner: Spending On Public Cloud Services Growing Rapidly


The fastest growing segment will be in the IaaS market, Gartner's Anderson said. “If I’m running servers in the data center now, I’m realizing I can pack them up and drop them in Amazon E2,” Anderson said.

Public cloud services spending for IaaS will reach $6 billion in 2012, up from $4 billion in 2011, and is projected to reach $24 billion in 2016.

Anderson said IaaS early movers -- Rackspace, Terremark and Amazon -- captured most of the IaaS market, but traditional IT vendors such as Microsoft, HP and IBM, as well as large outsourcers such as Cognizant and Wipro, are offering similar services.

Although cloud services spending on Platform-as-a-Services is not expected to be as high as other segments, it will involve scores of companies offering a wide variety of services to help businesses reach cloud providers via technology platforms.

Platform-as-a-Service will account for a $1.2 billion in 2012, up from $0.9 billion in 2011, and is projected to reach $27 billion in 2016.

“This is a small part of the overall spending, but it is a growth driver for vendors who have IaaS or SaaS offerings,” Anderson said. “So, they will be a critical strategic piece.”

Cloud management and security project the smallest piece of the cloud-services spending pie, with 2012 spending to be at $3 billion, up from $2 billion in 2011, with spending in 2016 to reach $8 billion.

The Gartner report said overall worldwide IT spending will reach $3.6 trillion in 2012, up 3 percent from $3.5 trillion in 2011.

PUBLISHED JULY 9, 2012