The global public cloud services market is predicted to grow by 17.2 per cent this year, according to new research.
A report by Gartner has revealed that the market is expected to reach $208.6 billion (£160.4 billion). This is up from $178 billion (£137 billion) in 2015.
According to the study, the highest level of growth will come from cloud system infrastructure services or Infrastructure as a Service (IaaS), which is predicted to grow 42.8 per cent in 2016. Cloud application services or Software as a Service (SaaS), meanwhile, is expected to grow 21.7 per cent in 2016 to reach $38.9 billion (£29.9 billion).
Sid Nag, research director at Gartner, said: "Growth of public cloud is supported by the fact that organisations are saving 14 per cent of their budgets as an outcome of public cloud adoption, according to Gartner's 2015 cloud adoption survey.
“However, the aspiration for using cloud services outpaces actual adoption. There's no question there is great appetite within organisations to use cloud services, but there are still challenges for organisations as they make the move to the cloud. Even with the high rate of predicted growth, a large number of organisations still have no current plans to use cloud services."
The report showed that IT modernisation is currently the top reason for public cloud adoption. This is followed by cost savings, innovation and agility, amongst other benefits. Gartner said that the focus on IT modernisation indicates “a more sophisticated and strategic use of public cloud services”.
Security and privacy concerns continue to be the top inhibitors to public cloud adoption, according to the report. Gartner said this was despite strong security track records and increased transparency of leading cloud providers.