North America to continue to dominate the global market with a 50% share, predicts Ovum
The global public cloud services market will more than triple in size over the next five years to reach revenues of $66bn in 2016, according to research company Ovum.
In a new forecast, the analyst said that the public cloud services market will increase at a compound annual growth rate (CAGR) of 29.4% for the forecast period, growing from the $18bn it will reach at the end of 2011.
Ovum cloud computing analyst Laurent Lachal said the global public cloud services market will explode over the next five years as uptake soars worldwide.
"However, although the market size will see strong growth, the evolution of cloud computing within enterprises and the IT trends that follow will happen more slowly," said Lachal.
Ovum said that North America will continue to dominate the global market with a 50% share in 2016. The market in North America is expected to grow at a CAGR of 27.1% between 2011 and 2016, increasing from $10bn to hit $33bn.
Asia-Pacific will increase its share from 16% in 2011 to 18.8% in 2016. The region will grow at a CAGR of 33.9% from 2011 to 2016, from $2.9bn to $12.4bn, said Ovum.
It added that Europe, the Middle East and Africa will remain the second-largest market over the forecast period. The region’s share will increase from 27% in 2011 to 29% in 2016, said Ovum.
While, western Europe is expected to grow at a CAGR of 31.2% from 2011 to 2016 to reach $17.2bn, up from $4.4bn in 2011, eastern Europe will grow at a CAGR of 31% from 2011 to 2016 to reach $1.5bn, up from $396m in 2011, said Ovum. The Middle East and Africa will increase at a CAGR of 31.7% from 2011 to 2016, rising from $114m to $451m, Ovum added.
In terms of the cloud computing service lines, SaaS will shrink from 87% of the market in 2011 to 62% in 2016 due to the rise of IaaS and PaaS, which will grow from 9% and 5%, respectively, to 23% and 16% at the end of the forecast period, said Ovum.
Lachal said, "Shifts will include taking a more holistic approach to connecting networks, hardware and software. IT departments will also reduce their emphasis on maintenance and increase their innovation, while being encouraged to take more risks, by giving employees the capacity to tackle high-reward ventures.
"But, as ever, preparation is the key to ensuring that cloud computing delivers a positive outcome."