Cloud computing: SaaS, IaaS or PaaS – which is growing fastest?
As cloud computing continues to eat up traditional tech spending, businesses are beginning to change where they spend their money.
The worldwide public cloud services market is forecast to grow 17% in 2020 to a total of $266.4 billion, up from $227.8 billion in 2019, according to tech analyst Gartner.Cloud computing adoption has now become mainstream, said Sid Nag, research vice president at Gartner.
That means higher spending on cloud, but also higher expectations from cloud buyers as to what they will get for their money.
According to Gartner, software-as-a-service (SaaS) will remain the largest market segment: SaaS is forecast to grow to $116 billion next year, up from $99.5 billion in 2019.
The second-largest sector is cloud infrastructure-as-a-service (IaaS), which will reach $50 billion in 2020. IaaS is forecast to grow 24% year over year, the highest growth rate across all market segments, which Garter said was the result of data centre consolidation. That’s because modern applications and workloads — many of which are cloud applications themselves — now require infrastructure at a scale that traditional data centres cannot meet.