Popularity of cloud computing to soar in over next 3 years

Popularity of cloud computing to soar in over next 3 years

The popularity of cloud computing is to soar over the next three years, research has suggested.

A study from 451 Research found that the cloud computing market’s global revenue will rocket at a compound annual growth rate (CAGR) of 26 per cent during 2016. This will see its value rise to $20 billion (£12.3 billion) by the end of the three year period.

However, Yulitza Peraza, co-author of the Cloud as a Service overview report, warned that there were still some challenges surrounding the takeup of cloud services.

She commented: “Cloud computing is on the upswing and demand for public cloud services remains strong.

“However, public cloud adoption continues to face hurdles, including security concerns, transparency and trust issues, workload readiness and internal non-IT-related organisational issues.”

According to the report, infrastructure as a service (IaaS) accounted for the majority of the total market revenue of cloud computing in 2012. Figures indicated that IaaS raked in more than half of the total public cloud market share last year. It is predicted to continue doing well over the next few years, with a projected CAGR of 37 per cent in 2016. 

Meanwhile, platform as a service (PaaS) accounted for nearly a quarter of total public cloud revenue in 2012.

However, it is set to see significant growth, if the figures are anything to go by, being forecasted at a projected 41 per cent CAGR between 2012 and 2016.

When it came to cloud vendors, publicly traded companies made up 23 per cent of those tracked. These companies generate 78 per cent of total cloud revenue. 

Despite this, many are not yet in the midmarket bracket, which is generally considered to to apply to companies making between $5 million and $50 million revenue. However, the majority of cloud vendors still remain some way off this mark. This led to midmarket companies making up just 25 per cent of cloud’s total revenue in 2012.