By the end of the year, cloud services revenue is predicted to reach $260 billion which is an 18.5 percent year-on-year increase.
The highest growth will come from IaaS offerings, which are projected to grow 36.6 percent in 2017 to reach $34.7 billion and SaaS revenue will grow 21 percent in 2017, to hit $58.6 billion.
Research director at Gartner Sid Nag said that the acceleration in SaaS adoption can be explained by providers delivering nearly all strains of application functional extensions and add-ons as a service. Pretty thrilling, eh?
“This appeals to users because SaaS solutions are engineered to be more purpose-built and are delivering better business outcomes than traditional software. SaaS is also growing faster in 2017 than previously forecast, leading to a significant uplift in the entire public cloud revenue forecast”, he said.
He added that strategic adoption of PaaS offerings are also outperforming previous expectations, as large enterprises are becoming confident that PaaS will be their primary form of application development platform in the future.
“This accounts for the remainder of the increase in this iteration of Gartner’s public cloud services revenue forecast.”
Gartner predicts that the total market will be worth $411.4 billion by 2020. That’s a lotta dosh and very thrilling!