Gartner Predicts IaaS Market to Grow 23.31% Through 2020

Gartner Predicts IaaS Market to Grow 23.31% Through 2020

Gartner’s latest worldwide public cloud services revenue forecast  predicts Infrastructure-as-a-Service (IaaS), currently growing at a 23.31% Compound Annual Growth Rate (CAGR), will outpace the overall market growth of 13.38% through 2020. SaaS revenue is predicted to grow from $58.6B in 2017 to $99.7B in 2020. Taking into account the entire forecast period of 2016 – 2020, SaaS is on pace to attain 15.65% compound annual growth throughout the forecast period, also outpacing the total cloud market.

Catalysts driving greater adoption and correspondingly higher CAGRs include a shift in infrastructure, middleware, application and business process services spending. In 2016, Gartner estimates approximately 17% of the total market revenue for these areas had shifted to the cloud. Gartner predicts by 2021, 28% of all IT spending will be for cloud-based infrastructure, middleware, application and business process services. Another factor is the adoption of Platform-as-a-Service (PaaS). Gartner remarks that enterprises are confident that PaaS can be a secure, scalable application development platform in the future. 

Doug Atkinson

An entrepreneur and executive with a passion for enterprise technology, Doug founded Solutions Review in 2012. He has previously served as a newspaper boy, a McDonald's grill cook, a bartender, a political consultant, a web developer, the VP of Sales for e-Dialog - a digital marketing agency - and as Special Assistant to Governor William Weld of Massachusetts.