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19 July 2017
| Natalie Bannerman
Global revenue from cloud and software-as-a-service (SaaS) services will grow 23-29% CAGR over the next five years, forecasts new data from Synergy Research Group.
"As cloud markets reach a massive scale, growth rates will
inevitably tail off, but our latest forecasts are still showing
that over the next five years we will still see some really
robust growth," said John Dinsdale, a chief analyst and
research director at Synergy Research Group.
This prediction means that these sectors will pass the $200
billion milestone in 2020, which in turn will create an
approximate 11% annual growth rate in the sales of
infrastructure to hyper scale cloud providers.
Conversely sales of hardware and software to data centres
will decline further, reflecting the shift from privately-owned
infrastructure to the public cloud.
Broken into categories public
infrastructure-as-a-service (IaaS) and platform-as-a-service
(PaaS) will see the most growth at 29%, managed or hosted
private cloud service revenues will increase by 26% and
enterprise SaaS by 23%.
Across all major cloud service segments strong growth is
expected to continue. Some of the biggest growth being seen in
database and IoT-based Iaas/PaaS services and enterprise
resource planning within SaaS. Geographically APAC is set to
become the highest growth region, followed by EMEA and North
The data also revealed that the 24 hyperscale companies now
have a global footprint comprising of over 360 large data
centres, growing at a rate of almost 20% per year and
dominating the cloud market. According to the report, these
companies will soon account for over 80% of all cloud and SaaS
service revenues and almost 40% of spend on all public and
private data centre equipment.
"As cloud continues to dramatically reshape the IT world it
is also clear that the hyperscale phenomenon continues to
dramatically reshape cloud. Hyperscale operators are
diminishing the growth opportunity for traditional
non-hyperscale service providers and are also seriously
challenging the technology vendor community to rethink its
position in the new world," added Dinsdale.
Last month, Synergy Research Group published its findings on
colocation market leaders, metros with the highest revenue growth, cloud infrastructure and the cloud services market.
Synergy Research Group,