Cloud Computing Market to Hit Nearly US$20bn in Three Years…

Cloud computing market revenue will jump at a compound annual growth rate (CAGR) of 36pc to just about US$20bn at the end of 2016. However, challenges still surround public cloud adoption, a study by 451 Research suggests.

“Cloud computing is on the upswing and demand for public cloud services remains strong,” said Yulitza Peraza, analyst, Quantitative Services, 451 Research and co-author of the Cloud as-a-Service overview report.

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

The report reveals that infrastructure-as-a-service (IaaS) accounted for most of the total market revenue in 2012, with more than half of the total public cloud market share, and a 37pc CAGR through 2016.

Platform-as-a-service (PaaS) made up 24pc of the total public cloud revenue last year. The report also indicates PaaS will experience the fastest growth, at a projected CAGR of 41pc between 2012 and 2016.

The infrastructure software-as-a-service (SaaS) sector, which does not include enterprise SaaS revenue, represented 25pc of total cloud revenue in 2012 and is expected to generate a 29pc CAGR through 2016.