Gartner, an international research and advisory firm, said that the global public cloud services market is expected to grow to $246.8 billion in 2017, up 18% from 2016's $209.2 billion. The largest growth momentum will come from the Cloud Systems Infrastructure Services (Infrastructure as a Service, IaaS) division, which is expected to grow 36.8% in 2017 to reach $34.6 billion. Cloud Application Services (Software as a Service, SaaS) is expected to grow 20.1% to $46.3 billion.
Gartner Research Director Sid Nag pointed out: "Overall, the global public cloud market is gradually entering a stable period, and the growth rate will reach a peak in 2017, which will be 18%. In the next few years, it will gradually decrease. Although some organizations are still thinking about it. How to introduce the cloud into the overall IT strategy, but the company's continuous pursuit of cost optimization and business transformation still brings great advantages to IT outsourcing (ITO) purchasers. Gartner predicts that by 2020, cloud adoption strategy will affect More than 50% of IT outsourcing cases."
Nag also said: "Corporate organizations are pursuing cloud-related services because of their multi-faceted value, including agility, scalability, cost advantages, innovation and business growth. The decision is not entirely representative. Cloud services, but the decision of the purchasing staff does make the cloud a top priority, so as to speed up the implementation and shorten the time required to create value (TIme-to-value)."
Global Public Cloud Service Market Forecast (in millions of US dollars) (Source: Gartner, February 2017)
The growth rate of the SaaS market will slow down slightly in the next few years, mainly due to the maturity of SaaS products such as Human Capital Management (HCM) and Customer Relationship Management (CRM), as well as the increase in buying of financial applications. However, SaaS will continue to maintain its position as the second largest segment of the global cloud services market.
Nag believes: "As enterprise application procurement personnel gradually change to the cloud as the primary consideration, we estimate that more than 50% of new cases of applications adoption by large enterprises in North America in 2017 will include Saas or other forms of cloud solutions. The adoption curve of medium-sized and small-sized enterprises is more obvious. By 2019, more than 30% of the new software investment cases of the top 100 manufacturers will be changed from cloud priority to cloud-based.
Gartner predicts that as infrastructure computing services become more popular and mainstream, growth in this area will become more apparent. The additional demand generated by the transfer of infrastructure to the cloud, coupled with the increasing demand for intensive computing operations (such as artificial intelligence, analytics, and the Internet of Things) in the average enterprise and start-ups, has led to related growth. In addition, the growth of Platform as a Service (PaaS) has also led to the adoption of IaaS.
As for individual regions, the IaaS cloud market in mainland China has also increased its forecast size as the overall procurement demand grows, especially for larger Chinese manufacturers that supply IaaS services purely, as well as other telecommunications-related service providers that drive this market. The growth rate is quite impressive. Although the cloud service market in mainland China has just started, it has been behind the European and American markets for several years, but the digital transformation is gradually becoming mainstream in the next five years, and the market is expected to maintain a high growth level.
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