Cloud Revenue To Top £13bn By End Of 2016

The cloud market is set to be worth £13.3bn by the end of 2016, with the sector inflating at a compound annual growth rate 36 percent.

The figures are courtesy of 451 Research’s Market Monitor, and the Cloud as-a-Service overview report provides current market size and five-year growth rates for the infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) and infrastructure software-as-a-service (SaaS) segments.

Cloud computing is on the upswing

“Cloud computing is on the upswing and demand for public cloud services remains strong,” stated Yulitza Peraza, Analyst, Quantitative Services, 451 Research and coauthor of the report.

“However, public cloud adoption continues to face hurdles including security concerns, transparency and trust issues, workload readiness and internal non-IT-related organizational issues.”

The report found that IaaS accounted for the majority of total market revenue in 2012, with more than half of the total public cloud market share, and a 37 percent CAGR through 2016.

The PaaS layer accounted for nearly a quarter (24 percent) of the total public cloud revenue in 2012, and will experience the fastest growth – a projected CAGR of 41 percent between 2012 and 2016.

Market Monitor said that publicly traded companies comprise 23 percent of the cloud vendors tracked, and generate 78 percent of the total revenue. The majority of vendors are still below the $5 million revenue threshold; vendors that constitute the cloud ‘midmarket’ (between $5m and $50m in revenue) accounted for 25 percent of total revenue in 2012.

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