Infrastructure As A service (IaaS) cloud computing revenue to surge by 2020

Infrastructure as a service (IaaS) cloud computing revenue to surge by 2020

Public cloud Infrastructure As A Service (IaaS) offerings are quickly becoming the norm for many companies, with on-premise hardware beginning to lose ground in terms of its popularity.

A recent survey found that nearly two-thirds of IT organisations are using or planning to use public cloud IaaS by 2016.

The findings from the International Data Corporation (IDC) canvassed the opinions of 6,000 companies, and found that revenue from public cloud IaaS services are set to more than double from $12.6 billion in 2015 to $43.6 billion in 2020, with a compound annual growth rate (CAGR) of 28.2 per cent over the five-year forecast period.

The market for IaaS products grew by 51 per cent during 2015 and IDC expects this high level of growth to continue through 2016 and 2017, predicting a CAGR of over 41 per cent.

Deepak Mohan, research director, Public Cloud Storage and Infrastructure at IDC, said that the main driver behind such growth was the perception that public cloud services are increasingly seen as a good way of making businesses faster and more agile.

He added: "This is bringing about a shift in IT infrastructure spending, with implications for the incumbent leaders in enterprise infrastructure technologies. Growth of public cloud IaaS has also created new service opportunities around adoption and usage of public cloud resoCapitals urces. With changes at the infrastructure, architectural, and operational layers, public cloud IaaS is slowly transforming the enterprise IT value chain."

Nevertheless IDC expects growth to stall after 2017 as enterprises shift from cloud exploration to cloud optimisation. That trend will coincide with growth in managed private cloud platforms, which will witness increased maturity and availability.

The end result will subsequently be an increase in the number of options available to IT organisations as they look to plan the transformation of their infrastructure.

Hybrid infrastructure looks set to be one of the key trends for many companies, many of whom see the combined use of existing physical IT infrastructure with the cloud as the perfect way to set up an optimal path to public cloud IaaS adoption.

For a large number of enterprises, a hybrid cloud system is already a common part of the operations, with IDC predicting that 80 per cent of IT organisations will be using such an approach as part of their overall infrastructure by 2018.