Last year proved to be a bit of a surprise in the growth of the cloud, now that some of the yearly numbers are available. As it turns out, the final number for the cloud market in 2016 topped $148 billon on an annualized basis. And the trends shows no signs of slowing.
The major players such as Amazon Web Services, Microsoft, IBM, Rackspace and Salesforce all showed significant growth in six key markets: infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), hosted private cloud, enterprise software-as-a-service (SaaS), unified communications-as-a-service (UCaaS), public cloud and private cloud. The table below presents the data in a more detail.
What is interesting is that, in 2016, the spending on cloud services has overtaken the spending on cloud infrastructure hardware and software, according to Synergy Research Group. In aggregate, the cloud service markets are now growing three times more quickly than the cloud infrastructure hardware and software market.
According to new research data from Synergy Research, some of the XaaS segments are showing phenominal growth. The IaaS and PaaS segment experienced the highest growth rate at 53 percent. This was followed by hosted private cloud infrastructure services at 35 percent and enterprise software-as-a-service at 34 percent.
It appears that 2016 was the year that the cloud started to dominate many IT market segments. The coming year looks like it will put the cloud out there as a mainstream platform with most of the barriers to implementation becoming a thing of the past.