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2023

The global cloud AI solutions market grew by a third over the year to reach $91.3 billion

In 2023, the global market for cloud solutions with artificial intelligence reached $91.3 billion. For comparison, a year earlier this figure was $67.1 billion. Thus, over the year, the industry grew by more than a third - by 36%. This is stated in a study by Market Research Future, the results of which were published in mid-July 2024.

As digital technologies and connected devices spread, the amount of data generated is growing rapidly, creating a need to increase the capacity to analyze them. Cloud platforms offer scalable infrastructure and flexibility to handle vast amounts of information, making them ideal for AI workloads.

Cloud computing provides greater adaptability, scalability, and flexibility for customers. Instead of spending money and time maintaining their own IT infrastructures, customers can focus on more important tasks. Without large initial investments, they are able to quickly use the necessary computing resources to train AI models and implement new applications. In addition, cloud platforms offer a wide range of off-the-shelf AI services such as speech recognition, image analysis, and predictive analytics. Cloud AI systems also automate customer service processes with chatbots and virtual assistants, providing timely and personalized support. Overall, access to enhanced capabilities through the cloud democratizes AI adoption, enabling enterprises of all sizes and industries to leverage these technologies to drive innovation, streamline operations, and gain competitive advantage.

Among the leading cloud AI platforms are Google Cloud, Amazon Web Services (AWS), Microsoft Azure, IBM Watson, Salesforce Einstein, Oracle AI, SAP Leonardo, etc. Analysts divide the market into segments of solutions and services. The first category includes machine learning, natural language processing, computer vision, predictive analytics, etc. The service group includes consulting, implementation, training, and support services. In 2023, the global cloud AI product market was dominated by solutions with a 60% share: they accounted for approximately $54.75 billion in revenue. At the same time, the services segment has the highest cumulative annual growth rate (CAGR). This is due to the increasing demand for professional and managed services to support the implementation and optimization of AI solutions.

Geographically, the largest market for cloud AI systems is North America. In 2023, it accounted for about a third of all costs - $30.7 billion. The region is home to leading cloud service providers and large technology corporations that drive innovation and investment in AI platforms. North America has a developed IT infrastructure and a large user base in various industries. In second place is Europe: the region pays great attention to data privacy and security, which makes cloud AI solutions an attractive option for enterprises seeking to comply with rules such as GDPR (General Data Protection Regulation). Rounding out the top three is the Asia-Pacific region, which has the highest CAGR.

Market Research Future analysts believe that in the future, the CAGR value in the global cloud AI market will be 36%. As a result, by 2032 the volume of the industry will reach $1.07 trillion.^[1]

Growth in spending on public cloud services by 19.9% to $669.2 billion. Largest segments

At the end of 2023, the global market for public cloud services reached $669.2 billion. This is 19.9% more than in the previous year, when costs in this area were estimated at $558.3 billion. The continued rapid development of the industry is stated in the IDC study, the results of which were published on June 10, 2024.

Analysts identify four key areas in the field of public clouds. These are IaaS (infrastructure as a service), PaaS (platform as a service), SaaS - Applications (software as a service - applications) and SaaS - SIS (SaaS - system infrastructures). Each of these areas showed significant growth in 2023.

The largest segment of the cloud market is SaaS - Applications. In 2023, costs in this area amounted to $298.5 billion, which is 17.4% more compared to the previous year, when the result was recorded in the amount of $254.4 billion. At the same time, the contribution of relevant services to the total volume of the public cloud industry decreased on an annualized basis from 45.6% to 44.6%. Another $133.4 billion was provided by IaaS solutions, showing an increase of about 15.6% compared to 2022 ($115.5 billion). The market share of this segment decreased year-on-year from 20.7% to 19.9%.

PaaS services in 2023 accounted for $123.3 billion against $95.4 billion a year earlier: this corresponds to an increase of 29.3%. PaaS's share in the overall market structure rose from 17.1% to 18.4%. SaaS - SIS services showed annual growth from $93.1 billion to $114 billion, that is, by 22.5%. The share of this segment increased from 16.7% to 17%.

PaaS revenue growth continues to outperform the overall cloud market - largely due to investment in artificial intelligence. Leading providers and smaller players continue to deploy PaaS-based AI solutions. Providers are focused on becoming strategic partners for their customers by providing high-performance, developer-friendly, reliable and secure tools to effectively implement intelligent applications, says Adam Reeves, IDC Research Director.

Among the leading providers of public cloud services are named, Microsoft,,, and Amazon Web Services (AWS) Salesforce. Google At the Oracle end of 2023, they jointly control approximately 40.5% of the world market. At the same time, Microsoft is the leader with a share of about 16.8% in total revenue. This follows AWS with a result of 12.4%. Closes the top three Salesforce with 4.5%. Then come Google and Oracle, which control 4.4% and 2.4% of the industry, respectively. The total share of all other players combined is estimated at 59.6%.

The proliferation of AI forces organizations to rethink their IT infrastructure strategy. The public IaaS cloud in such a situation is an attractive option, since cloud service providers invest heavily in the high-performance computing resources, data storage and network services necessary to maintain AI workloads, "said Dave McCarthy, vice president of research at IDC.

The authors of the report believe that in 2024, global revenue from public cloud services will exceed $800 billion, which will correspond to growth at 20.5% compared to the previous year. Similar growth is also expected in 2025. Overall, the CAGR (compound percentage CAGR) over five years is projected at 19.5%. Thus, analysts say, in 2028, the volume of the global public cloud industry could reach $1.6 trillion.^[2]

The global public cloud market continues to grow, its volume reached $478.32 billion

At the end of 2022, the global market for public cloud services reached $478.32 billion, and the largest segment of the industry is SaaS solutions (software as a service). This is stated in a study by Gartner, the results of which are presented on November 13, 2023.

The cloud has become almost an integral element in the corporate environment. However, the situation is changing for providers of relevant services, since cloud models no longer determine business results, but rather business results form cloud models, "says Sid Nag, vice president of analyst at Gartner.

In 2022, SaaS services provided $174.42 billion in total public cloud spending. The second largest segment was IaaS solutions (infrastructure as a service) with an indicator of $120.33 billion. This is followed by PaaS services (platform as a service) with $119.58 billion. Analysts distinguish two more categories of cloud services - BPaaS (business processes as a service) and DaaS (desktop as a service): in 2022 they provided $61.56 billion and $2.43 billion, respectively.

Gartner notes that the development of the public cloud market is significantly influenced by the rapidly developing direction of generative artificial intelligence (GenAI). For projects in this area, customers need significant computing resources with the ability to scale as needed. At the same time, corporate customers implementing GenAI have additional requirements for cloud providers related to the cost of using computing power, sovereignty, data privacy and sustainability. Analysts emphasize that hyperscalers who are able to meet such needs will be able to take advantage of completely new revenue opportunities in the GenAI era.

Another key trend driving cloud spending is the continued growth of industry cloud platforms. These solutions deliver area-relevant business results by combining SaaS, PaaS, and IaaS services into a complete offering with customizable capabilities. Gartner predicts that by 2027, more than 70% of businesses will use industry cloud platforms to accelerate their business operations. For comparison: in 2023, this figure is less than 15%. The introduction of GenAI will also contribute to the growth of industry cloud platforms.

Gartner estimates the global public cloud market in 2023 at $563.59 billion. This corresponds to an increase of 17.8% compared to the previous year. SaaS platforms remain the largest segment with revenue of $205.22 billion. Income from PaaS services is estimated at $145.32 billion, from IaaS services - at $143.93 billion. In the BPaaS sector, costs were fixed at $66.34 billion, while DaaS solutions provided $2.78 billion.

In the future, analysts believe, the global public cloud industry will continue to show steady growth. In particular, in 2024, it is expected to increase total costs by 20.4% - to $678.79 billion. Of these, approximately $243.99 will fall on the SaaS segment. In the areas of IaaS and PaaS, the costs of enterprises can reach $182.22 billion and $176.49 billion, respectively. BPaaS services, according to Gartner, will account for $72.92 billion, DaaS - $3.16 billion. In 2024, growth will be observed in all segments of the cloud market. At the same time, experts believe that the largest increase will be shown by the directions of IaaS (plus 26.6% on an annualized basis) and PaaS (plus 21.5%).^[3]

Named 10 main trends in the cloud computing market

The boom in artificial intelligence, the complexity of multi-cloud computing and digital sovereignty will be the main factors determining the development of the cloud computing market in 2023. This is stated in a study by Forrester, the results of which were released on September 21, 2023.

Investment in cloud infrastructure is growing despite the difficult geopolitical environment, macroeconomic challenges and high inflation. This is facilitated by the rapid development of the generative AI segment and the ongoing digital transformation of enterprises. Forrester analysts name the top 10 trends in the cloud computing market.

1. AI boom creates chaos

This is due to the fact that each supplier promotes its own new services. Major cloud players such as Amazon Web Services (AWS), Azure and Google Cloud, as well as startups, are actively developing AI capabilities. However, such an abundance of proposals creates difficulties for enterprises developing consistent business development strategies.

2. Built-in AI improves operations

AI gives momentum to development through technologies such as surveillance, predictive analytics, dialog interfaces and automation. Cloud providers and enterprises are deploying AI into monitoring, management, and support systems.

3. WebAssembly (WASM) is the future

This format is no longer seen as a web browser-only solution - it is transforming into a one-stop platform spanning different IT infrastructures.

4. Enforcement of digital sovereignty goes beyond data

There are new rules governing the use of software and hardware, as well as the organization of workloads. This complicates cloud strategies and requires a reassessment of supply chain reliability.

5. Hardware Vendors Implement Subscription Model

Manufacturers are looking to compensate for the decline in sales caused by the movement of workloads outside the enterprise to the cloud. The subscription model makes it possible to create a new income item.

6. Optimizing Cloud Costs

We are talking about the FinOps concept, which combines the principles of financial management with cloud design and operations to give organizations a better idea of ​ ​ their spending on the cloud. The goal of FinOps is not to save money, but to maximize the revenue or value of the business with the cloud.

7. Multi-Cloud Networks

As peripherals become increasingly intertwined with cloud infrastructure, IT market participants are focusing on zero trust (ZTE) architectures to securely connect traditional data centers, clouds, and remote sites. The ZTE concept will help you organize hybrid IT environments.

8. Cloud security ecosystem

This area is actively developing taking into account the needs of cloud providers. We are talking about solutions for data protection, access control, encryption and post-quantum cryptography.

9. Specialized Cloud Platforms

There is a development of cloud systems adapted to the needs of certain industries. Such platforms will improve efficiency in solving specific problems.

10. Expanding the Scope of System Integrators

The more private enterprises and large government organizations move to the cloud, the wider the scope of global system integrators. They go beyond cloud transformation to become permanent providers of managed services to their customers, often in conjunction with large cloud service providers.^[4]

2022

$84 billion invested in cloud and peripheral computing projects in the world

In 2022, investments in cloud peripheral and computing platforms on a global scale reached $84 billion. However, the pace of migration of companies and government organizations to the cloud has slowed down compared to the previous year. This was announced on July 20, 2023 by an international consulting company. McKinsey

Analysts say that enterprise users use computing infrastructures and storage systems at different levels. These are local equipment, peripheral platforms, relatively small regional data centers and remote hyperscale sites. Edge computing provides organizations with the flexibility to process data closer to their sources faster. At the same time, large public clouds provide an opportunity to reduce financial costs.

McKinsey connects the slowdown in migration to the cloud with several factors: global macroeconomic difficulties, privacy issues, the need to reduce costs in the context of high inflation. It is noted that some companies are "repatriated" from the cloud, but of those who carry out such a process, only 6% have completely abandoned cloud services. Most use a hybrid approach, using local hardware resources and public cloud platforms. At the same time, the use of cloud computing to support artificial intelligence applications as well as machine learning systems is growing. In addition, the peripheral computing segment is actively developing.

The number of vacancies in the cloud market from 2018 to 2020 remained almost unchanged, and in 2021 there was a sharp increase due to the digital transformation of enterprises amid the COVID-19 pandemic. In 2022, the number of ads for the search for specialists in this area increased by about 12% on an annualized basis.^[5]

The global public cloud market grew 22.9%. Leaders

At the end of 2022, the global market for public cloud services amounted to $545.8 billion. This is 22.9% more compared to 2021, when costs were estimated at $444.2 billion. Such data are provided in the IDC study, the results of which were released on July 6, 2023.

Analysts are looking at four key segments of public clouds. These are IaaS ("infrastructure as a service"), PaaS ("platform as a service"), SaaS ("software as a service") and SaaS-SIS ("SaaS in the field of system infrastructures").

Cloud service providers are investing heavily in expanding high-performance infrastructures. This serves two purposes. First, investment contributes to the next wave of migration of enterprise applications that previously remained local. Secondly, the basis for new software based on artificial intelligence is being formed, which can be quickly deployed at any scale. In both cases, these investments provide additional opportunities for market growth, "said Dave McCarthy, vice president of research at IDC's Cloud and Edge Infrastructure Services.

In the IaaS segment, revenue in 2022 amounted to $115.5 billion, the market share - 21.2%. For comparison: in 2021, these indicators were $91.5 billion and 20.6%. Thus, growth was recorded at 26.2%. PaaS services brought in $92.6 billion, which corresponds to 17% of the total market volume. In 2021, the values ​ ​ were $70.1 billion and 15.8%; year-on-year growth of 32.1%. In the direction of SaaS in 2022, revenue was recorded in the amount of $246.3 billion, or 45.1%. The corresponding figures for 2021 are $208.1 billion and 46.8%, and the segment increase is 18.4%. In the SaaS-SIS group, revenue, according to IDC estimates, was at the level of $91.4 billion against $74.6 billion in 2021. Year-on-year growth was 22.6%, while market share shrank from 16.8% to 16.7%.

While the public cloud services market as a whole grew 22.9% year-over-year in 2022, revenue from major cloud services supporting strategies focused on enterprise digital transformation increased 28.8%. This, as noted by IDC, highlights the growing reliance of companies on cloud infrastructure, HPC services and AI tools.

The combined revenue of five leading public cloud service providers - Microsoft, Amazon Web Services (AWS), Salesforce, Google and Oracle - accounted for more than 41% of the global market in 2022. The total income of these companies increased by 27.3% compared to 2021. Microsoft retained its leading position with a 16.8% share in 2022. In second place is AWS with a result of approximately 13.5%.

If we consider only the SaaS segment, which is the largest ($246.3 billion), then Microsoft is the leading player in it with a share of 16.4% in 2022. The second line went to Salesforce with a result of 8.3%, and closes the top three SAP - 3.7%. Next come Oracle and Google, holding 3.5% and 3.3% of the segment, respectively. All other Solutions SaaS suppliers in 2022 demonstrated a total result of 64.8%.

SaaS remains the largest segment of the public cloud sphere. Changing market conditions, exponential growth in cloud spending, and rapid supplier innovation are helping to support double-digit growth, "said Frank Della Rosa, vice president of research for SaaS applications and business platforms at IDC.[6]

Global Cloud Security Tools Market Up 38%

The global cloud protection industry (SSE) in 2022 grew in monetary terms by approximately $1 billion, or 38%, compared to the previous year. This assessment was made by Dell'Oro Group, which released the results of the study on March 15, 2023.

The SSE (Security Service Edge) tools are part of the Secure Access Service Edge (SASE) network model. It is a combination of SWG (gateway-level security), CASB (secure cloud access broker), FWaaS (cloud firewall) and ZTNA (zero trust network access solution) technologies, as well as SD-WAN (software-defined WAN) and VPN (virtual private network) network technologies. In fact, SASE is a set of new and previously used solutions. This platform provides security facilities to the user, device, or edge computing node.

Analysts at Dell'Oro Group say the pandemic COVID-19 has increased the need for cloud applications amid the development of the concepts of remote work and distance learning. And therefore, companies and organizations began to more actively implement SSE funds. More than 20 suppliers offer such solutions on the global market. The top three players include Cisco,/ Broadcom and: Symantec in Zscaler 2022, they received approximately 58% of the total revenue. In the segment of firewalls of various types, costs showed an increase of double-digit percent: Cisco solutions were in greatest demand, and. Fortinet Palo Alto Networks

If we consider the SASE market as a whole, then, according to the Dell'Oro Group, its volume in 2022 exceeded $6 billion. The growth in relation to 2021 was approximately 34%. Cisco, Zscaler and Broadcom/Symantec were among the top three suppliers in terms of revenue: together they controlled just over 40% of the industry. At the same time, Cisco accounted for 17%, while Zscaler lagged by less than 1%.

For the third year in a row, SASE revenue growth exceeded 30%, as the need to modernize the network and security architecture caused by the COVID-19 pandemic persists. Comprehensive SASE toolkits from a single supplier showed higher sales growth dynamics: this reflects the preferences of enterprises in favor of a universal product, rather than best-in-class solutions from several suppliers, "said Mauricio Sanchez, Director of Network Security Research, SASE and SD-WAN at Dell'Oro Group.

According to the results of 2022, SASE kits from one supplier accounted for 45% of total deliveries: Cisco, Fortinet and Palo Alto Networks were the most in demand. The top three unified SASE providers by revenue included Versa Networks, VMware and Cato Networks.

In the SD-WAN network segment, revenue in 2022 increased by 30% compared to the previous year. The top three players in this area in terms of revenue included Cisco, Fortinet and VMware - together they occupied almost half of the market. From a technological point of view, SSE solutions in 2022 occupied almost 60% of the global SASE market in terms of income. Another 40% fell on SD-WAN platforms.

It is noted that due to the digital transformation of the business, the increase in the number of remote workplaces and the use of cloud services, security in the cloud is becoming more and more important, and therefore the demand for SASE products is growing rapidly. Such solutions provide effective protection both inside and outside the traditional perimeter of the network.^[7][8]

The market for cloud services and infrastructure for them grew by 21% and reached $544 billion

In 2022, the total revenue of public cloud operators and infrastructure solution providers for them reached $544 billion, rising 21% compared to 2021. Such figures are given in a study by Synergy Research Group, the results of which were published at the end of January 2023.

The largest growth was observed in the segments IaaS (infrastructure as a service) and (PaaS platform as a service). In 2022, income from these decisions rose by 29% and exceeded $195 billion. It is noted that the growth was recorded, despite some serious obstacles associated with strengthening, dollar USA the difficult macroeconomic situation and problems in the Chinese market. In other main service segments - managed private cloud services, corporate services (SaaS as software a service) and (CDN geographically distributed network infrastructures) - costs increased by an average of 19% compared to 2021, amounting to approximately $229 billion.

To maintain the listed and other services, public cloud service operators spent $120 billion in 2022 to build, lease and equip the infrastructure of their data centers, which is 13% more than a year earlier. Across the public cloud ecosystem, the most prominent companies were Microsoft, Amazon, Salesforce and Google. Other major players were Adobe, Alibaba, Cisco, Dell, Digital Realty, Huawei, IBM, Inspur, Oracle, SAP and VMware. In total, these companies in 2022 accounted for approximately 60% of all revenues related to public clouds.

While cloud markets are actively growing in all regions of the world, the United States remains a center of attraction. In 2022, the U.S. accounted for 45% of all revenue from cloud services and 53% of hyperscale data center capacity. Globally, the vast majority of leading players are American companies, followed by Chinese operators, which in 2022 accounted for 8% of all revenues from cloud services and 16% of the capacity of hyperscale data centers.

Synergy Research Group estimates that revenues from the public cloud ecosystem will double in just four years - by the end of 2026. Over the same period, large cloud service providers are expected to increase the number of existing hyperscale data centers by 50% and raise network throughput by more than 65%.

According to Gartner, global end-user spending on public cloud services reached $490.33 billion in 2022. For comparison: in 2021, this figure was $412.63 billion. The largest share of revenue in 2022 was brought by SaaS services: according to Gartner estimates, they accounted for $167.11 billion. This is followed by IaaS solutions with a result of about $115.74 billion, while PaaS services accounted for $110.68 billion. Approximately $60.13 billion in 2022 brought BPaaS solutions (business processes as a service). Cloud management and security accounted for approximately $34.14 billion of total revenue. In the DaaS segment (desktop as a service), revenue amounted, according to preliminary data, to $2.53 billion.

Current inflationary pressures and macroeconomic conditions have an impact on cloud spending. But cloud computing will remain a bastion of security and innovation, supporting growth in challenging times with its flexibility, elasticity and scalability, said Sid NAG, vice president of analytics at Gartner.[9][10]

Many companies have switched to the cloud, but have not yet waited for a payback

At the end of September 2022, analysts KPMG published a study in which they reported that many companies in the world that have moved corporate tools in recent years, technologies into the cloud including in order to save money, have not yet waited for the return on these investments, and some see an increase in costs.

Approximately 67% of the 1,000 surveyed IT executives from various industries said they still have to see a significant return on cloud investment, according to The Wall Street Journal.

Many companies have stepped up efforts to move systems and applications to the clouds since the start of the COVID-19 pandemic to support the transition to remote work. Companies collect huge amounts of data in cloud storage services, they are processed by increasingly complex software and analytics tools designed, among other things, to obtain information about customers and the market.

Cloud computing was initially marketed to enterprises as a cost-effective way to quickly build IT capabilities as needed and deliver unlimited computing power on a pay-as-you-go model. Instead of running software and systems on their own hardware, commercial cloud users are leveraging the computing power of providers like Amazon.

For September 2022, companies accumulate huge amounts of data in cloud storage and transfer it to increasingly complex software and analytical tools designed, among other things, to obtain information about customers and the market. They turn to multiple cloud providers instead of relying on a single cloud for different systems and applications for different business sectors. All of this could drive up costs, say corporate technology leaders and industry analysts.

Dell Technologies Chief Technology Officer John Rose believes that the main reason for overspending on cloud technology is that IT directors do not think strategically about how to distribute opportunities between different cloud service providers and how to make them work together. Companies have been making active efforts in recent years to move workloads to clouds, in many cases ending in multiple clouds that have a lot of duplication and little consistency, notes VMware Chief Technology Officer Keith Colbert. In VMware, we use the phrase - cloud chaos, he specified.^[11]

The world's largest providers of cloud AI services for developers are named

In June 2022, the analytical company Gartner published the so-called magic square (study) for the cloud AI services market for developers. Such products help to use artificial intelligence models through APIs, software development kits (SDKs) or applications. The AI services in question provide access to areas such as automated machine learning ( autoML), natural language understanding (NLU), image recognition, machine learning (ML), etc.

Microsoft

Microsoft's Azure AI platform is a comprehensive solution for use in areas such as NLU, image recognition, and autoML. Its services can be used by professional developers through the API and SDK, as well as ordinary developers through the Microsoft Power Platform.

Strengths: Microsoft helps professional programmers and ordinary developers easily use ML, NLU and image recognition services in their applications. Microsoft's use of cloud services for AI developers in its product lines gives it a clear advantage, allowing faster competitors to improve product quality and reduce time to market, according to Gartner.

Weaknesses: Microsoft offers a full portfolio of services only in the Americas. According to Gartner, prospective customers should determine whether Microsoft supports these services in their region.

Amazon Web Services (AWS)

AWS provides AI services, including Amazon SageMaker other popular language and image recognition services designed to automate the full cycle of AI development and implementation. The service allows customers to create solutions on their own, with dedicated AWS staff or with the help of consulting partners. AWS is the best choice for production workloads thanks to low operating costs and a wide range of AI services and infrastructure, analysts argue.

Strengths: AWS outperforms everyone in terms of AI operationalization and development scalability. Amazon SageMaker allows developers to deploy trained models in production environments with one click. AWS has steadily expanded its presence in the cloud AI developer market, attracting hundreds of thousands of customers.

Weaknesses: AWS is the only "leader" in the Gartner magic quadrant that lacks the concept of multi-cloud and hybrid clouds. Customers looking for multi-cloud and hybrid cloud solutions from AWS have limited choice and are likely to be forced to partner with other providers.

Google

The company offers services in NLU, image recognition and autoML via Vertex AI on Google Cloud Platform (GCP). Google's services focus on deep neural network models. The company also offers AI for contact centers and document work, as well as pre-trained ML models that developers can customize for themselves. Google is a leader in AI research and responsible AI.

Strengths: Google has well-defined ethics processes and can quickly address AI-related issues on a case-by-case basis. The company has model cards that explain the basic principles of a particular ML model, as well as objectivity indicators that automatically assess the bias of data sets and different models.

Weaknesses: Google does not fully support deploying AI services in private clouds or on local sites. Google's development efforts focus almost exclusively on neural networks, with little attention paid to symbolic AI.

IBM

IBM services cover all segments of the CAIDS AI developer cloud services market. The company combined its AI offerings under the Watson brand.

Strengths: NLU IBM are especially strong. Developers can integrate IBM Watson Assistant, Watson Natural Language Understanding, and Watson Discovery to simplify the search and creation of intentions and entities.

Weaknesses: While IBM's offerings are comprehensive, in some areas, such as image recognition and labeling, and image generation, they are not enough. In addition, some customers note that IBM prices are over-inflated, with high transaction costs. ^[12]

2021

The global market for public cloud services showed growth of 29%

Spending on public cloud services around the world in 2021 reached $408.6 billion against $316.7 billion. Thus, the market grew by 29%, according to data that IDC analysts released at the end of June 2022.

Assessing the market situation, experts considered sales of IaaS (infrastructure as a service), PaaS (platform as a service), SaaS - SIS (software system infrastructure as a service) and SaaS applications.

In 2021, companies continued to actively implement public cloud services available to everyone in order to more accurately link IT investments with business results and provide rapid access to innovation within digital-focused strategies, says IDC analyst Rick Villars. - Over the next few years, leading cloud service providers will play a crucial role in helping companies deal with a host of challenges (inflation, supply chain disruptions, geopolitical tensions).

The report said the share of the top five public cloud providers (Microsoft, Amazon Web Services, Salesforce, Google and SAP) stood at 40% in 2021, while those providers' combined revenue climbed 36.6%. According to the researchers, due to the fact that Microsoft offers solutions in all four main categories of the public cloud market, the American corporation leads it with a share of 14.4%. This is followed by Amazon Web Services with a 13.7 percent result.

Global spending on fundamental cloud services, which are at the heart of strategies that put digital at the forefront, rose 38.5% in 2021, according to the report. Such dynamics, according to analysts, emphasize the growing dependence of companies on computing services, artificial intelligence and data services, as well as fundamental applications that stimulate innovation. IDC expects spending on fundamental cloud services (especially the IaaS and PaaS element) to continue to grow at a faster rate than the entire cloud services market as businesses use cloud technology to overcome current challenges and accelerate the transition to digital business.

SaaS applications remained the largest segment of the global public cloud market in 2021. Their sales for the year increased by 23.5% and reached $177.8 billion. Commenting on the situation in this segment, IDC analyst Eric Newmark noted that the positive impact of the COVID-19 coronavirus pandemic in 2021 still contributed to the accelerated update and replacement of old systems, while the company's goals have not changed.

The business is looking for applications to help improve corporate analytics, improve operational efficiency, and improve decision-making processes. Ease of use, ease of implementation and integration, optimized workflows, access to data and analytics, and payback time are key criteria for purchasing decisions, the expert said.

The study notes that several players dominate the segments of fundamental cloud services and SaaS applications, but there are a large number of companies providing services around the world. In the category of fundamental solutions, leading providers accounted for about three-quarters of revenue in 2021. In the SaaS application segment, Microsoft leads, and the top 3 also includes Salesforce and SAP (IDC data for 2021).^[13]

Spending of companies in the world on cloud services increased by 22%, to $451 billion

In 2021, companies' spending on public cloud services around the world reached $451 billion, an increase of 22% compared to 2020. At the same time, business costs for non-cloud IT solutions in comparison with the same periods also increased, but not so much - by about 5%, to $744 billion. This is evidenced by analyst data Gartner published on February 9, 2022.

The transition to the cloud over the past two years has only accelerated due to the COVID-19 coronavirus pandemic. Thus, organizations reacted to the new dynamics in business and society, "said Michael Warrilow, vice president of research at Gartner, whose words are given in the report.

According to the expert, service and technology providers that are unable to adapt to the growing pace of transition to cloud solutions risk becoming irrelevant or, at best, may be pushed into less promising markets.

To capitalize on the large-scale transition of the business to cloud technologies, Gartner recommends that IT vendors rely on the target segments in which such a migration is taking place most actively, as well as look for new opportunities for developing the cloud business. For example, infrastructure-related segments have lower cloud penetration and are expected to grow faster than, for example, the enterprise systems market, which is much larger. Suppliers should also focus on specific users, projects and strategies for bringing products to market, analysts are sure.

The researchers believe that the transition to cloud projects will be strengthened by the introduction of new technologies, including Distributed Cloud. Many of these innovations will further blur the boundaries between traditional and cloud solutions, the report noted.

Experts also believe that organizations will more often resort to the services of external consultants due to a lack of their own resources and capabilities. The trend will be most pronounced in the field of cloud technologies, which are becoming a key element in achieving digital development goals and supporting a hybrid work format.

According to Gartner, about 81% of companies have already switched to a strategy of using several public cloud services, and 84% of respondents described their IT infrastructure as a kind of multi-cloud environment.

In the magic quadrant Gartner, dedicated to the public cloud services market and published in 2021, Amazon (market share - 32%), Microsoft (18%) and Google (8%) are named its leaders. Analysts included Alibaba, Oracle, IBM and Tencent among the niche players (5% or less for each of the companies).

Analysts attributed the advantage of Amazon Web Services for business to:

• the ability of the company to sharpen databases for specific processes;
• the development of artificial intelligence and machine learning services, making AWS the preferred choice for training such models;
• development of options for using 5G networks, cloud and peripheral computing;
• the ability to migrate more AWS clients to native processors.

The researchers named the advantages of the Microsoft Azure infrastructure:

• Microsoft has the widest range of capabilities covering the entire range of corporate IT tasks, from SaaS to PaaS and IaaS;
• corporate relations: companies often choose Azure because of the trust in Microsoft that has developed over many years;
• implementation of services for working with databases and Big Data.^[14]

Strategic approach to clouds accelerates customer search by 50%

Organizations that view and use cloud services as part of a digital transformation strategy benefit far more than those who choose the cloud only for cost reasons or as a low-cost alternative to a physical data center. This was announced on August 11, 2021 by Accenture. Accenture specialists received such results according to a survey of 4 thousand heads of organizations from 25 countries and 16 industries. The survey was conducted in late 2020 - early 2021.

Companies that have a strategic vision of cloud migration, not just economic motivation to transition, have been ahead of the competition. They are two to three times more likely than industry colleagues to innovate. Such players are twice as fast at reducing operating costs. They also attract customers 50% faster and enter new markets.

The study found that most of those surveyed plan to move at least two-thirds of workloads to the cloud in the next 3-5 years, but only half of them tap into the full potential of cloud technology.

"Most organizations use hybrid infrastructure, combining public and private clouds as well as edge computing. But there is practically no integration between them, "explained Kartik Narain, head of Accenture Cloud First. "The data, innovation and best practices that have already been achieved by one part of the business do not benefit other units at all."

Cloud practice leaders (approximately 12-15% of them depending on the region) act differently. They apply the best practices of public cloud service providers when developing their own IT infrastructure. It can be based on private clouds or edge computing solutions. With this approach, companies gain more benefits, making them more adapted to market turbulence.

"Russian companies also focus on reducing costs and building private clouds without noticing the potential of using the cloud for business. The difficulty of justifying the effectiveness of cloud solutions, not entirely correct assumptions, far-fetched and real risks are the main factor in "do not go to the cloud." Those who realized that moving to the cloud is not just an IT task win, but a business priority and the basis for development and winning competition, "explained Evgeny Filatov, head of Intelligent Cloud & Infrastructure Accenture in Russia.

According to him, this approach is able to meet the needs of the business. Namely: accelerate the withdrawal of new functionality, new products, reduce the cost of error, reduce the time for testing new business ideas, increase the accuracy of forecasts, simplify the connection of partners and customers.

2020

Growth of the public cloud services market by 24%, to $312.4 billion

Global spending on public cloud services in 2020 increased by 24% compared to the volume of one year ago and amounted to $312.4 billion. This is reported by IDC analysts.

Experts include the following solutions as public cloud services:

• IaaS (infrastructure as a service);
• SISaaS (system infrastructure as a service);
• PaaS (platform as a service);
• SaaS (software as a service).

In the cloud market, excluding SaaS, Amazon Web Services holds the first place, which accounted for 24.1% of revenue in 2020. The second position was taken by Microsoft (16.6%), the third - Google (4.2%).

Salesforce remains the leader in the SaaS segment, whose share at the end of 2020 was 9.3%. Microsoft and SAP followed with results of 8.7% and 4.7%, respectively.

The entire market for public cloud services continues to consolidate - the joint share of the five largest providers in 2020 (Amazon Web Services, Microsoft, Salesforce.com, Google, Oracle) increased to 38% from 32% a year earlier. Thanks to the expansion of the portfolio of SaaS and SISaaS products, Microsoft was able to catch up with Amazon, their market shares were 12.8% each.

The fastest growing segment of the cloud market in 2020 was IaaS: here revenue increased by 33.9%, to $67.2 billion. The PaaS segment demonstrated slightly less high dynamics (+ 31.8%). Global spending on software offered as a service rose 18.6% to $148.4 billion. Thus, SaaS remains the largest segment, and Frank Della Rosa, director of market research for SaaS and cloud software, cited the reasons for this.

Companies across industries have rushed to replace legacy business applications with a new generation of SaaS solutions that are data-driven, intuitive, built, and ideal for more distributed cloud architectures. Organizations that need industry products can choose from an ever-growing range of vertical applications, the analyst said.

He stressed that the SaaS solutions market is dominated by a large group of suppliers whose joint share exceeds 65%.

IDC's 2020 study said the IaaS and PaaS segments have grown faster than the market in the past four years, pointing to companies' increasing reliance on cloud infrastructure, software-defined data, computing and process management solutions in service format, and cloud platforms to implement enterprise applications. IaaS and PaaS costs are expected to increase at a higher rate than the entire cloud market.

Cloud service providers are rapidly expanding their portfolio of infrastructure and platform services for sensitive computing, high-performance computing, and hybrid environments, "says Dave McCarthy, vice president of Cloud and Edge Infrastructure Services at IDC. - Extending these fundamental cloud services to customer LANs and communication networks provides a broader set of use cases than previously possible.

IDC analyst Lara Greden added that the high sales growth rates of PaaS, IaaS and SISaaS solutions, which together account for about half of the public cloud services market, reflect a trend in demand for technologies that can speed up and automate the development and delivery of modern applications. The rise of these segments is facilitated by the growing use of DevOps approaches, she said.^[15]

Growth of the public cloud market by 11%, to more than $270.03 billion - Gartner

Global spending on public cloud services in 2020 exceeded $270.03 billion, Gartner analysts calculated in a study released in April 2021. Experts did not specify the dynamics in comparison with 2019, but earlier they reported the volume of this market at $242.7 billion following the results of this 12-month period. Thus, there was an 11 percent increase.

From the Gartner report, it follows that the segment PaaS in 2020 recorded costs of $46.34 billion, and the largest result came from - SaaS defits ($102.8 billion). Technology sales IaaS in 2020 reached $59.23 billion. In the category of business platforms offered as a service (), BPaaS global spending in 2020 amounted to just over $46.13 billion.

Against the background of the mobilization of organizations associated with large-scale global production and supply work vaccines from, experts say, COVID-19 SaaS-based solutions that ensure the automation and operation of supply channels have become critical., Software offered as a service, continues to demonstrate uptime in scaling vaccine management processes, which, in turn, will further spur Chief information officers to migration to the cloud.

The events of the last [2020] year have allowed Chief information officers to overcome any reluctance to move critical processes from the local environment to the cloud, says Sid Nag, vice president of research at Gartner. - Even in the absence of the [coronavirus COVID-19] pandemic, the appetite for data centers will still decline. New technologies, such as containerization, virtualization, and edge computing, are becoming more common and resulting in additional cloud computing costs. Simply put, the pandemic has increased the interest of Chief information officers in the clouds.[16]

2019

Public Cloud Market Reaches $233.4 Billion - IDC

In August 2020, the analytical company IDC released a study on the global market for public cloud services.

The data presented covers areas such as IaaS (infrastructure as a service), PaaS (platform as a service) and SaaS (software as a service). In 2019, the volume of the industry in monetary terms amounted to $233.4 billion. This is a quarter (26%) more than the result for 2018, when income was $185.2 billion.

The lion's market share is held by SaaS services. In 2019, they accounted for approximately $148.5 billion, or 63.6% of the total recorded revenue. In second place are the IaaS platforms with $49 billion and 21% of the industry. Finally, another $35.9 billion was brought by PaaS solutions, which accounted for 15.4%.

It is noted that at the end of last year, five leading providers occupied more than a third of the global market for public cloud services: Amazon, Microsoft, Salesforce.com, Google and Oracle. Moreover, the growth rate of these companies is ahead of the industry average: + 36% on an annualized basis.

In terms of revenue from IaaS and PaaS, Amazon leads, whose share in 2019 was 33.6%. Microsoft followed with a result of 18%, and Google closed the top 3 (4.9%).

In the segment of software provided as a service, the first line is shared by Salesforce.com and Microsoft. The difference in shares between them is only 0.4 percentage points. The third place in terms of SaaS revenue in 2019 was taken by SAP with an indicator of 4.1%.

At the end of 2020, the market is likely to also show impressive growth. This will be facilitated by a pandemic that has created an additional need for cloud services.

The cloud goes far beyond niche e-commerce and contextual advertising. It underlies all the digital activities that people and companies depend on in a pandemic. Business talked about moving to cloud computing for up to 10 years. Now he hopes to complete the migration twice as quickly, "said IDC analyst Rick Villars (Rick Villars).

As indicated in the study, since 2016, the market for public cloud services has more than doubled. Over the same period, the combined costs of IaaS and PaaS almost tripled. This highlights the growing reliance on cloud infrastructure and platforms used by companies to run internal applications.

IDC believes that the global costs of IaaS and PaaS will continue to grow at a higher rate than the entire public cloud market, as sustainability, flexibility and agility have become determining factors in the choice of IT platforms.

The study cites Deepak Mohan, IDC Director of Services Market Research for Cloud Infrastructure Deployment. He says that economic uncertainty draws new attention to the main advantages of IaaS: low financial obligations, flexibility to support businesses and operational stability.

Cost optimization and business sustainability have become the main drivers of investment decision making in IT, and IaaS solutions are designed to provide both. The COVID-19 crisis has accelerated the introduction of cloud technologies by both traditional corporate IT organizations and digital service providers that are increasingly using IaaS for their technology platforms, the specialist emphasized.

According to Larry Carvalho, Director of Market Research at PaaS at IDC, digitalization of processes has become a priority for companies in all industries, and this increases the demand for new applications, as well as spurs the repurposing of existing solutions. Modern PaaS technologies based on containers and serverless computing provide developers with the necessary tools to meet these needs. The growth in revenue in the PaaS market reflects the business's need for tools designed to accelerate and automate software development, he added.

IDC SaaS and Cloud Software Research Director Frank Della Rosa points out that SaaS market growth continued to decline in 2019, but in the context of the coronavirus pandemic, the introduction of such solutions may accelerate due to a surge in demand for tools for remote work.^[17]

More companies in the world are expressing their willingness to actively apply the public cloud as the main tool for technological innovation. The number of successful commercial cases is growing, including in the large business segment.

Some of the leaders in the consumption of cloud products were retail and wholesale, as well as the financial sector and production. The main driver of consumption growth was the ability to introduce innovations and technologies based on clouds, such as big data analytics, artificial intelligence and the Internet of Things.

According to experts, the cloud has become a daily service for companies of all sizes and in all industries. However, companies do not always completely change the physical infrastructure to the cloud, in particular if the systems are optimally loaded, but not   when there are unpredictable peak loads on the network. IT-intensive companies are looking for a balance between using clouds and their own physical infrastructure, so a hybrid model is often implemented that allows you to combine the scalability of computing resources and the security of critical business systems, the study says.

Public cloud market reaches $242.7 billion - Gartner

Analytical company Gartner estimated the global public cloud services market at $242.7 billion at the end of 2019. Experts did not give a comparison with 2018 in numbers or percentages and only noted that the costs of such services are on the rise.

Analysts call SaaS (software as a service) the largest segment of the global cloud market. Sales of such solutions in 2019 exceeded $102 billion.

The growing demand for SaaS is driven by the continued refusal of manufacturers to sell licenses for software installed on client computers in favor of subscription products. Another driver is the popularization of SaaS tools for remote work and remote equipment in the context of the COVID-19 coronavirus pandemic.

The use of public clouds gives Chief information officers of two clear advantages during the COVID-19 pandemic: the use of budgets for the right tasks and deferred costs, says Sid Nag, research director at Gartner. - chief information officer can spend less money on upfront payments using cloud technology instead of building local data center capacity or buying traditional software licenses.

According to the analyst, the coronavirus crisis has postponed all talk about the advantages and disadvantages of using public cloud services. Companies are actively resorting to such tools for implementing employee collaboration, managing corporate mobile devices, distance learning of employees and ensuring information security, Nag added.

The second place in terms of revenue in the cloud market was taken by services BPaaS (business processes as a service) - at the end of 2019 we are talking about an amount of $45.21 billion. The three largest cloud categories included solutions of the type (IaaS infrastructure as a service), the annual implementation of which amounted to $44.46 billion.

The study also shows the cost of services for managing and securing cloud infrastructure - $12.84 billion. In addition, Desktop as a Service (DaaS) services are mentioned, within which the virtual desktop is provided according to the cloud service model. DaaS offers an inexpensive way to implement remote work for a large number of employees and opens them up to access corporate systems from different devices and from different places, Gartner explains.

Analysts agree that the cloud services market will grow due to the current economic crisis, because there will be a redistribution of the IT budgets of companies and more money will be invested both in communication channels and in storage. Cloud services not only organize remote work and data storage, but often best protect information.

In the segment of public cloud services, annual growth is expected at 23%. Several factors will contribute to this rise, including the growing adoption of the Internet of Things, the development of the IT industry and the advantages that public clouds provide.

In addition, the growing need for companies to reduce operating costs and improve their efficiency and quality of service will further spur market growth.

Among the world's largest providers of public cloud services, the researchers included the following companies (listed in alphabetical order):

• Adobe;
• Alibaba Cloud;
• Amazon Web Services;
• Google;
• Hewlett Packard Enterprise;
• IBM;
• Microsoft;
• Oracle;
• Salesforce.com;
• SAP.[https://www.gartner.com/en/newsroom/press-releases/2020-07-23-gartner-forecasts-worldwide-public-cloud-revenue-to-grow-6point3-percent-in-2020 Gartner Forecasts Worldwide Public Cloud Revenue to Grow 6.3% in 2020/Ошибка цитирования Неверный вызов: нет входных данных

2018

Public cloud spending rises 27.4% to $182.54 billion - IDC

In 2018, the global public cloud services market amounted to about $182.54 billion, which is 27.4% more than a year earlier. Growing demand for such services was reported at the end of July 2019 by research firm IDC.

According to experts, the market in question is growing more than 4.5 times faster than the entire IT industry. Although the dynamics decreased slightly compared to 2017, this was expected, given that in three years the public cloud market has more than tripled and reached high volumes, the further build-up of which is increasingly difficult, according to the analytical report.

The top five accounted for 35% of revenue and 46.3% of total public cloud spending growth in 2018. The share of these companies in monetary terms increased by 3 percentage points compared to 2017.

These figures, experts say, show a continuing trend towards market consolidation. The even more pronounced dominance of several players is expressed in the IaaS and PaaS segments, in which the top 5 vendors control 63% of costs.

Frank Gens explains the increased concentration of leaders in the PaaS and IaaS segments by the fact that developers and companies have chosen them as the areas on which manufacturers will focus their innovations for 10 years and later.

The demand for platform-as-a-service products is fueling a shortage of highly qualified developers in companies, says Larry Carvalho, director of market research at PaaS at IDC.

Its own cloud infrastructure has led to an increase in demand for platform tools designed to accelerate the development and deployment of applications through abstracted container applications. Despite the fact that the Asia-Pacific region [in 2018] accounted for only 11% [of the PaaS market], revenue there grew faster than in the rest of the world, Carvalho said.

Global spending on IaaS solutions in 2018 amounted to $35.98 billion, an increase of 45% compared to the previous year. In other segments of the cloud market, growth rates were lower, with costs for PaaS and SaaS rising 39.9% and 20.8%, respectively.

Frank Della Rosa, director of SaaS market research at IDC, draws attention to the fact that the segment of software provided as a service remains the largest in the cloud market with a share of 62.4% at the end of 2018.

Adoption of cloud enterprise solutions such as ERP, SCM and HCM has also accelerated across all segments. Most buyers, launching new applications, choose either SaaS in the first place, or along with other technologies, the expert noted.

The IDC study also cites the opinion of another analyst, Deepak Mohan, who specializes in studying the market for services for cloud infrastructure. According to him, the IaaS segment in 2018 stopped growing slowly, as it was before. The reversal of the trend became remarkable, given that in 2017 the cost of infrastructure-as-a-service solutions was measured at a considerable $24 billion. The surge in 2018 was due to the growth of leading providers and increased demand for IaaS in the Asia-Pacific region, especially in China. Thus, the contribution of Amazon Web Services (AWS) and the Asia-Pacific region to the growth of the IaaS segment amounted to 80%, according to IDC.

IDC predicts that the global public cloud services market will grow steadily and reach almost $500 billion by 2023.^[18]

Public Cloud Services Market Growth by 19% to $182.4 Billion - Gartner

In 2018, the global market for public cloud services reached $182.4 billion, an increase of 19% compared to 2017. Analysts Gartner released such data on April 2, 2019.

The largest segment of the market in question remains Solution SaaS, whose global sales in 2018 amounted to $80 billion. The three types of public clouds in which companies invest the most included BPaaS (business processes as a service) and infrastructure as a service (IaaS).

Cloud services are definitely changing the industry in a dramatic way, "says Sid Nag, vice president of research at Gartner NAG. - At Gartner, we do not know a single service provider or manufacturer whose business models and revenue growth would not depend on the growing adoption of strategies in companies in which cloud services are brought to the fore. What we're seeing now is just the beginning. By 2022, as Gartner predicts, the cloud services market will exceed the IT services industry, and the growth rate of the former will be three times higher.

More than a third of organizations include cloud spending among the three priorities for investing, according to a Gartner study. Analysts predict that by the end of 2019, more than 30% of the costs of buying new software from technology companies will come exclusively from cloud services. This means that sales of software licenses will decline, while SaaS and cloud subscriptions will become even more popular, experts explain.

Sid Nag says that almost 19% of corporate budgets for cloud computing are spent not on the products themselves, but on cloud-related services: consulting, system integration, management, etc. By 2022, the share of such services will increase to 28%, analysts predict.Ошибка цитирования Неверный вызов: нет входных данных

Synergy Research Group: Cloud market up 32% to $250 billion

In 2018, the global cloud market exceeded $250 billion, an increase of 32% compared to 2017. Such data are provided in a study that analysts at Synergy Research Group released in January 2019.

Experts called IaaS and PaaS services the fastest growing segment, the costs of which jumped 50% in the world by the end of 2018. Hybrid cloud management software ranked second in terms of growth, with sales up 41%.

In the segment of corporate Solutions SaaS, a 30 percent rise was registered. The same dynamics took place in the field of infrastructure (equipment and software) for public clouds. Global hardware and software costs for private cloud systems rose 29%.

Back in 2016, the cost of cloud services themselves turned out to be higher than on the equipment and software on the basis of which they work. In 2017 and 2018, the gap was even more substantial. Despite the surge in demand for cloud infrastructure in 2018, spending on services is still increasing faster, experts say.

In 2018, total sales of hardware and software used to build cloud infrastructure exceeded $100 billion. Costs between public and private clouds were shared roughly equally, but the first category continues to grow faster.^[19]

Thanks to the growing investments of cloud providers in the expansion of existing and the construction of new data centers, they were able to earn more than $150 billion in revenue from infrastructure services (IaaS, PaaS, private clouds) and corporate Solutions SaaS at the end of 2018. In addition, the infrastructure of these companies is used in the operation of Internet services such as search engines, social networks, e-mail, e-commerce, gaming and mobile applications.

IDC: Industries with the biggest cloud spending

On December 14, 2018, the analytical company International Data Corporation (IDC) published the results of a study in which it named the industries with the highest spending on cloud computing. The first place in 2018 was taken by healthcare, whose representatives spent about $12.1 billion on the relevant services.

In second place in terms of costs for cloud services is the public sector with an indicator of $8.4 billion. The leading three closed the financial market with cloud investments in the amount of $7.3 billion at the end of 2018. This is followed by retail ($6.1 billion) and manufacturing enterprises ($3.6 billion).

The five indicated industries, where the most money is spent on cloud computing, accounted for $37.5 billion in expenses at the end of 2018. It is expected that in 2019 this amount will be measured at $45.4 billion, that is, it will grow by 21.5%, and three out of five markets will show a rise above the market average.

Senior Vice President and Chief Analyst of IDC Frank Gens says that investments in cloud services will grow at an accelerated pace by 2021, and this is unusual for markets with multi-billion dollar turnover.

This growth is due to the rapid digitalization of industries such as healthcare, financial services and manufacturing, where clouds form the basis for the growth of a new generation of technologies and innovative strategies, the expert noted.

According to the results of 2018, companies in the United States spent the most funds on cloud services - about three quarters of the global figure. Most other regions will show growth above the market average: for example, in and an Japan China increase of 54% and 47% is expected, respectively.

World spending on cloud services in medicine in 2018 for the first time exceeded $10 billion, and in Western Europe - for $1 billion. Compared to other developed countries, Japan is lagging behind in the introduction of cloud technologies and will be able to demonstrate the growth of the corresponding market to $1 billion only by 2022. China will obey this mark two years faster, confident in IDC.

Senior research analyst at IDC Zachary Rabel notes that the global cloud market continues to grow faster because users of such services demand niche capabilities from cloud providers in their solutions and industry experience.^[20]

To match this growth, cloud service providers are increasingly shifting their horizontal capabilities toward shaping industry cloud solutions, and industry clouds themselves are creating partner consortia to drive innovation in the marketplace. Health care is driving this trend, but the financial and manufacturing sectors, as well as retail, are adopting the successes and failures of horizontal platforms to create their own development path, Rabel said.

After analyzing the data for 2017, analysts found that SAP was the leading provider of cloud solutions in the financial industry with a market share of 21.6%. In the manufacturing industry, the developer of software and cloud systems Veeva Systems distinguished himself, and Lockheed Martin took first place in revenue in the market for cloud solutions for the public sector with an indicator of more than $1 billion.

The only other vendor to conquer the billion-dollar milestone was the developer of software solutions for the sphere, health care Athenahealth whose revenue amounted to 1.2 billion. dollars

Data for the entire 2018 is not provided. Analysts only pointed to the largest cloud providers in healthcare in the first half of the year (see chart below).

2017

Public Cloud Market Growth by 29% to $117 Billion - IDC

In 2017, the global market for public cloud services increased by 29% and in monetary terms amounted to about $117 billion. Such data are provided in the IDC report published on June 22, 2018.

Experts note that the high growth rates of spending on public cloud services in the world have remained for five years in a row, despite the fact that over the past time, revenue in this market has tripled.

From a regional point of view, the United States continues to provide most of the sales, although the country's share of the total cost of public cloud services has slightly decreased. In 2017, the contribution of the United States amounted to 60%, while a year earlier the share indicator reached 62%. The decline occurred against the background of growing participation of other regions.

More than 64% of the revenue in the market under consideration was formed by the SaaS segment (software as a service). Among the main trends in this category, analysts noted the consolidation of vendors against the background of stable growth. In 2017, revenue here rose by 22% and came close to $75 billion. Progress was mainly provided by Enterprise Resource Management (ERM) systems, Customer Relationship Management (CRM) software and Collaborative Applications solutions.

The PaaS segment (platform as a service) accounted for 14.6% of the total volume of the public cloud services market. In 2017, the growth rate here slowed down slightly and amounted to 47% against 48% in 2016, and revenue exceeded $17 billion.

More than 31% of the turnover in the market or about $25 billion was provided by the IaaS segment (infrastructure as a service), which provides for the use of the supplier's computing resources, such as servers, network equipment and data storage. Analysts also noted a slight slowdown here: the growth rate in 2017 was within 40% instead of 45% in 2016.

The rating of vendors in the study is not given. It is only noted that in 2017, the 16 largest providers of public cloud services controlled over 50% of the market.^[21]

Public Cloud Market Growth by 30% to $153.5 Billion - Gartner

On April 12, 2018, analysts Gartner released some of the results of a study of the global public cloud market. The cost of these solutions increased by more than 30% thanks to infrastructure services () IaaS and software provided as a service (). SaaS

In 2017, the total costs of consumers and companies for cloud services provided as part of public access amounted to $153.5 billion against $118 billion a year earlier.

Sales of IaaS solutions jumped from $25.3 billion to $30 billion. SaaS and PaaS segments showed a rise from $38.6 billion and $7.2 billion to $60.2 billion and $11.9 billion, respectively.

Expenses on BPaaS services (business processes as a service) and cloud management and security services in 2017 reached 42.6 and 8.7 billion, respectively.

The largest segment of the public cloud market remains SaaS, which, according to Gartner forecasts, will increase by 22.2% in 2018, and by 2021 these solutions will account for 45% of software expenses in the world. The fastest growing segment of analysts is called IaaS, the volume of which will increase by almost 40% in 2018.

The growing dominance of suppliers of hyperscale IaaS solutions creates both great opportunities and problems for end users and other market participants, "comments Gartner analyst Sid Nag. - While this allows for increased efficiency and savings, organizations should be careful about IaaS providers that can have an uncontrolled impact on customers and the market. Following multi-cloud trends, companies will be looking for an easier way to seamlessly move their workloads, applications, and data through IaaS vendor offerings.

The specialist also noted that the SaaS model has become preferable in many areas, and the demand for services created to solve certain problems is growing among users of such solutions.

IDC: 94% of companies upgrade infrastructure to deliver applications

According to a study by Citrix and IDC, worldwide 94% of companies are actively preparing for modern realities, a focus on cloud technologies: they are engaged in either revising and transforming or modernizing their network infrastructures to simplify application delivery.

About the study

In the course of the study, IDC analysts commissioned by Citrix found out how companies cope with problems in networks in the process of solving important problems of digital transformation, what exactly budgets are spent on and how to optimize them. The survey was attended by representatives of 900 large companies around the world.

Respondents had to answer the following questions:

• What are the challenges of moving to cloud-based application delivery?
• What is the barrier to migrating applications to the cloud?
• Are you looking for a single consolidated approach to system organization?
• Are you in the process of finding a specific solution?

Main abstracts

• Only 24% of organizations are confident that their networks fully meet the requirements for moving software to the hybrid cloud;
• 82% of companies surveyed believe that their current network architecture is too complex to move applications to the cloud;
• 76% of respondents reported that their networks were completely unprepared (36%) or partially unprepared (40%);
• 70% of survey participants have 2-3 ways to remotely access their data centers and cloud.

Conclusions

Analysts have found that the main goals of the transition from a local model to the concept of delivering applications to user devices through the cloud are to increase security and reduce costs, including by optimizing the work of IT departments and specialists. Gradually, hybrid and multi-cloud technologies are becoming the "new normal" for companies that implement cloud environments. However, the very process of adapting the existing architecture for application delivery can be quite difficult and expensive.

At the same time, the study revealed a high need for a comprehensive approach when implementing an application delivery strategy. Most organizations (98%) are inclined to a single solution instead of integrating various systems from several manufacturers.

Expert opinion

Companies may need to change existing applications before they "migrate to the cloud." Therefore, software development budgets are more efficient to spend on the development and modernization of their applications. In some cases, they need to be completely rewritten, Citrix and IDC said in a report.

According to experts, companies should also consider integrating with other applications for migration purposes, consider how to use data with multiple applications, and check for a programming interface that will simplify workflows.

There are many ready-made SaaS applications on the market, but judging by the results of the IDC survey, companies are trying to invest in the development of their own applications and the modernization of data centers, since when implementing ready-made SaaS, it is impossible to influence cloud performance, choose tools to control user activity, and it is also necessary to create a single secure login to applications.

In some cases, funds could be spent more efficiently, and IT departments would need to change their usual operating principles when switching to hybrid cloud technologies.

External cloud solution providers can take on tasks that are typically performed by local field professionals. The placement of resources is carried out in just a few clicks with the mouse instead of deploying a new local server. At the same time, the provided security measures can protect against threats aimed at local and cloud resources.

Delivering virtual applications through the cloud enables companies to have a flexible and dynamic infrastructure. But they can take advantage of it only if they abandon the processes and methods of work that are used for traditional data centers. Otherwise, all resources and investments will be in vain.

Survey participants

Companies from different industries took part in the IDC survey: finance, insurance, medicine and many others. On average, their revenue is about $300 million per year, and the cost of IT infrastructure is about $3 million.

Price war

In April 2017, the analytics company 451 Research published the results of a study showing a new price war, which was unleashed by the leaders of the cloud computing market.

The April 20, 2017 report says that if earlier price competition developed only in the segment of virtual machines in the cloud, now it has affected storage services, and in the next 18 months price pressure will be observed in other segments, including cloud databases.

Object storage prices in the cloud began to decline in the third quarter of 2016. Then the first step in this direction was taken IBM in relation to the platform. SoftLayer Then the competitors followed suit, and Amazon Web Services (AWS). Google Microsoft

As a result, by April 2017, the cost of object storage services fell by 14%, while prices for virtual machines decreased by only 5%.

Large cloud providers are apparently actively playing catch-up, lowering prices for object storage so as not to stand out as expensive, says 451 Research analyst Jean Atelsek. - This is the first case of a big price war outside of computing solutions and indicates that object storage is becoming mainstream. While price cuts are good news for cloud users, they are now facing a new challenge with the difficulty of choosing suppliers.

The researchers believe that the cheapening of cloud services is due to the maturity of the market, the growing number of cloud implementation projects, the confidence of companies in these solutions and increased competition for orders to transfer data from local infrastructure to the cloud.

Relational databases are expected to be the next price war field for cloud providers.^[22]

2016

Gartner: Public cloud market growth of 20% thanks to IaaS

On February 22, 2017, the analytical company Gartner released the results of a study of the global market for cloud services provided to a large number of customers using public data centers. Expenses here increased by 20% thanks to infrastructure services (IaaS).

According to Gartner estimates, in 2016, the total costs of consumers and companies on public clouds amounted to $209.2 billion against $175 billion in 2015. Sales of IaaS solutions rose 56% to $25.3 billion, fueled by growing demand for cloud-to-cloud IT services and high-performance workloads like artificial intelligence, the Internet of Things and analytics.

A rather big growth rate (23%) in 2016 was also shown by the SaaS segment (software as a service), which amounted to $38.6 billion.

A period of stabilization begins in the global public cloud market. In 2017, the growth rate will reach a peak of 18%, and in subsequent years they will decline, says Sid Nag, director of research at Gartner. - While some organizations only assess the role of clouds in their IT strategy, efforts to optimize costs and embark on a transformation path are promising and productive for IT outsourcing customers.

Companies are choosing cloud solutions for their flexibility, scalability, innovation and opportunities to grow businesses and reduce costs, Sid Naga said.

The study also says that in 2016, the implementation of PaaS solutions (platform as a service) was measured at $7.2 billion against $3.8 billion a year earlier. Revenues in the cloud advertising, BPaaS services (business processes as a service) and cloud management and security services segments were $90.3, $40.8 and $7.2 billion, respectively.^[23]

Mark Hurd, Oracle CEO: 80% of IT budgets will "go to the clouds" by 2025

In a speech at Oracle OpenWorld 2016, Mark Hurd, CEO Oracle he spoke global economy about and about the problems facing IT in the context of weak growth. In GDP 2015, this figure increased by only 2.5% on average worldwide. In such a situation, the CEO of companies has to solve the most difficult problems.

Is it possible to increase market share while reducing costs? In the current state of IT, when 80% of the corporate IT budget is spent on supporting and maintaining hardware and software, bringing outdated IT in line with information security requirements, this is very problematic, but possible.

Many arguments speak in favor of the clouds: reducing capital and maintenance costs, supporting and updating IT, reducing labor costs, and the possibility of clearly planning IT investments. At the same time, clouds are safer, more reliable, easier to use, and better scalable than locally deployed solutions. They contribute to business innovation: they allow you to respond faster to demand and enter the market with new products or services.

As Mark Hurd noted, Oracle is investing in the development of cloud technologies: in fiscal 2016 alone, investments in research and development amounted to 5.1 billion. dollars Over the past six years, they have grown by $2 billion. 10 thousand Oracle engineers are working on innovative cloud solutions.

In 2015, at Oracle OpenWorld 2015, Mark Hurd announced that in 10 years, 80% of industrial applications will be transferred to clouds, 80% of the global SaaS market will be owned by two large suppliers, all software development and testing will be carried out in the cloud, almost all corporate data will be stored in clouds, and enterprise clouds will become the safest IT.

Confirming its forecasts, Oracle CEO added that by 2025, 80% of IT budgets will be spent on cloud rather than traditional IT systems, almost all new applications will become SaaS applications, and investments in cloud infrastructure will grow rapidly in the next 10 years.

This IT transformation will have far-reaching consequences. The number of corporate data centers will decrease by 80%. Such data centers will remain only to support legacy IT systems. In turn, such a shift will contribute to the redistribution of IT budgets from maintenance and IT support to innovation. "If all this happens by 2025, then 80% of CIO's IT budgets will be spent on innovation, not support," says Mark Hurd. "Clouds will change the IT economy." Cloud providers will focus on reducing cost and simplifying their offerings. And customers will have new opportunities to innovate, bring new products to market, and grow profits.

Gartner: 16% market growth forecast for 2016

In 2016, companies around the world will spend $204 billion on public cloud services. This is 16.5% more than in 2015 ($175 billion), predicted. Gartner For comparison, the global IT market as a whole in 2016 should grow by only 0.6%^[24]. Thus, the growth rate of the public cloud services market is 27.5 times higher than the growth rate of the IT market as a whole.

The largest growth, as expected in Gartner, will be shown by the Infrastructure as a Service - segment IaaS. According to analysts, in 2016 the growth of this direction in monetary terms will amount to 38.4%. Cloud advertising - the largest segment of the global cloud services market - will demonstrate 13.6-growth in 2016 and reach $90.3 billion. While the volume of the IaaS segment is $22.4 billion.

IDC, in turn, calls the largest segment "software as a service" (Software as a Service -). SaaS It is assumed that in the coming years this type of cloud services will account for more than two-thirds of the total market in monetary terms. At the same time, the annual growth rate of the IaaS segment, according to IDC, will average 27% in the period from 2015 to 2019, and the Platform as a Service - segment - PaaS 30.6%.

 

Market Trends:

• More Enterprise Workloads Move to the Cloud
• The cost of clouds has decreased, but there are problems optimizing costs
• Security is no longer a major cloud issue
• Significant growth of hybrid clouds. Emphasis on multivendor.
• Using Open Source
• Rapid proliferation of containerization and DevOps technologies
• Growth in cloud platform usage. OpenStack Interest in Bare-metal cloud
• Automated Software Defined Storage DSS
• Next-generation networks today are built at the junction of the clouds, SDN (Software-Defined Networking)  and NFV (Network Functions Virtualization)

IDC:

• By 2017, 35% of all applications will be deployed in the cloud
• Revenues from public cloud services will grow by 22.8% per year over the next few years, which is 6 times the growth rate of traditional IT products.

2015

Amazon, Microsoft, IBM and Google cloud business grows faster than market

In February 2016, analysts at Synergy Research Group published the results of a study of the global cloud services market. Its volume, as experts found out, increases more slowly compared to the growth rate of leaders.

Synergy Research estimates that the cloud deployment services market (including IaaS, PaaS, and private and hybrid cloud solutions) grew 52% in 2015, reaching $23 billion.

Amazon remained the largest cloud provider, having recorded a market share of 31%. Following Microsoft and IBM are far behind the leader, having 9- and 7-percent indicators, respectively. The top five in 2015 also included Google (4%) and Salesforce (4%).

According to experts, Amazon continues to strengthen its position and increase market share despite the fact that competitors Microsoft and Google are growing much faster. In October-December 2015, their revenue in the cloud infrastructure services market increased by 124% and 108%, respectively, while Amazon's business increased by 63%. In addition, IBM showed a rise of 57%, Salesforce - by 40%. The four largest players control more than half of the cloud market and grow faster than it, the study said.^[25]

"Second tier operators are either niche players, or providers of a wide range of IT services, or companies that don't have the big business, focus and investment opportunities needed to combat the four hyper-scalable cloud providers. This second tier includes Salesforce, Rackspace, Oracle, NTT, Fujitsu, Alibaba and HP Enterprise, says Synergy Research analyst John Dinsdale.

Amazon's cloud business is bigger than Microsoft, IBM, Google and Salesforce.com combined

On April 27, 2015, analysts at Synergy Research Group published some excerpts from their study, according to which Amazon unconditionally leads the global public services market, ahead of Microsoft, IBM, Google and Salesforce combined.

According to experts, in the first quarter of 2015, the market for services designed to deploy cloud infrastructures exceeded $5 billion, where Amazon's share (or rather, its division) Amazon Web Services/AWS amounted to 29%. This is more than the cumulative presence of such large competitors as Microsoft, IBM, Google and Salesforce.com. As you can see in the illustration presented by analysts, similar leadership AWS took place in 2014.

Growth dynamics of companies' revenue in the cloud services market

Synergy Research experts note that in this study they considered only cloud services, including IaaS and PaaS solutions, as well as private and hybrid clouds (sales of software and equipment for cloud infrastructures were not taken into account). In 2014, the volume of this market amounted to more than $17 billion, an increase of 45% on an annualized basis. Excluding the negative impact of the high dollar exchange rate, the rise was measured at 48%.

The fastest growth rate in the cloud services market is demonstrated by Microsoft - 96% in the first quarter of 2015 compared to the same period of the previous year. The software giant predicts its cloud business, covering products such as Office 365, Azure and Dynamics CRM Online, will reach $6.3 billion in 2015.

In terms of the dynamics of increasing sales of cloud services, AWS is inferior not only to Microsoft, but also to Google and IBM, which in January-March 2015 increased the volume of this business by 74% and 56%, respectively. Income from Salesforce.com. rose by 34%

Six major cloud service providers - AWS, IBM, Microsoft, HP, Cisco and Salesforce.com - could well earn more than $5 billion in the market in 2015, according to Synergy Research Group analyst John Dinsdale. At the same time, each of these companies claims leadership in various segments of the cloud industry, the expert noted.^[26]

2014

IDC data on the public cloud services market

IDC analysts estimated the volume and structure of the global public cloud services market in 2014. In addition, experts made a forecast in the horizon of 2018 (forecast from November 2014).^[27]

According to experts, in 2014, global spending on public clouds reached $56.6 billion, where SaaS solutions accounted for $39.8 billion in revenue. The rest of the market was divided by IaaS products ($8.7 billion) and PaaS ($8.1 billion).

Experts explain the dominance of the SaaS segment by the fact that the main demand in the public cloud market is concentrated around applications. At the same time, PaaS and cloud storage solutions are the fastest growing categories due to the increasing popularity of Big Data analytics tools and Internet developer services, the IDC report says.

According to analysts, by 2018, companies and consumers will spend about $20.3 billion on PaaS solutions. The largest segment of the public cloud market will remain SaaS, where revenue will be measured at $82.7 billion, which will more than triple the IaaS sector (the expected volume is $24.3 billion).

Thus, in 2018, an investment of $127.5 billion will take place in the public cloud services market, and their size by this time will increase by an average of 22.8% per year, which is six times the projected growth of the global IT market. Public clouds are expected to account for more than half of global software, server, and storage spending growth in 2018.

This progress is facilitated by both the vendors themselves, who prioritize cloud strategies, and their customers, who willingly implement new solutions. IDC believes that the cloud services industry has reached an "innovative stage" that will give a huge number of new products and provide them with additional cost.

As innovations develop in the cloud market, competition will increase, and this, in turn, may lead to consolidation of companies. For example, EMC's largest disk storage manufacturer is often cited by analysts and market participants as a potential target for uptake by vertical cloud suppliers, EnterpriseTech writes.^[28]

"This combination of turbulent innovation and intense competition will make 2015 important for current market leaders and those who strive for them," said Frank Gens, lead analyst at IDC.

Technology Business Research (TBR): Private Cloud Creation Market

According to Technology Business Research (TBR), released in July 2014, in 2014 the global private cloud market should reach $41 billion, and at a CAGR of 14% from will increase to $69 billion in 2018. According to Research and Markets, the CAGR of the private cloud solutions market in the period 2013-2018 will be 22% (this is also a forecast from 2014).

TBR points out that IBM, Microsoft, HP, and Cisco are the leading vendors in the global market for private cloud solutions, and the latter has a higher level of customer satisfaction, although it also offers more narrowly sharpened solutions. Forrester, in its study Forrester Wave, published in late 2013, names BMC Software, VMware, as the key market providers in addition to the above .

Also, according to the TMR study, if 30% of already operating private clouds in 2013 were serviced independently, and 70% were serviced by the provider, then in the first half of 2014 this proportion was already 35% to 65% and in the future the number of independent implementations will only increase.

Security solutions providers continue to play an important role in the private cloud market, since for most companies (59%), TMR points out, it is security that comes first when using this model. For information, the market for security solutions for cloud structures will grow from $2.1 billion in 2013 to $3.1 billion in 2015. The top 3 cloud security solutions include email security, IAM (identity and access control), and web security services, according to Gartner.

EU boosts cloud costs

Targeted European Union cloud market development policies will see spending on public cloud services in the region rise from €35.2 billion to €77.7 billion by 2020, according to IDC^[29]

Gabriella Cattaneo, Vice President of IDC EMEA, noted that migration towards a new IT paradigm will have a direct impact on economic growth in the European Union. as well as the creation of new workplaces. According to IDC, if the EU government takes a non-interference position on the cloud solutions market, that is, it will provide it with the opportunity to develop freely, the contribution of this market to the GDP of the European Union by 2020 will amount to 88 billion euros.

However, if the Eurozone authorities choose the option of tighter market management, it will generate up to 250 billion euros in the region's GDP by 2020, which is 162 euros more than in the first scenario. The cumulative effect calculated for the first and second scenarios for the period from 2015 to 2020 is 357 billion euros and 940 billion euros, respectively.

According to IDC, the main barriers to the wide penetration of cloud services in the European market remain some legislative uncertainties, concern of potential users about the possible level of security of services, the economic effect of the transition to the cloud model is not obvious for business.

In addition, in the same row, experts include user fears regarding the difference in cloud approaches among vendors, transparency and control, guarantees of access to data. To this, it is worth adding problems with support locally, including in local languages, low Internet connection speeds in a number of regions and other factors.

The IDC believes that concrete measures will be required from the European Commission to overcome these barriers. In particular, it is necessary to bring to a single denominator regulatory regulations in the field of data protection throughout the European Union, to develop common standards for the interaction of cloud systems, as well as uniform data protection requirements for all providers, regardless of which countries they are from. It will also require pan-European certification of cloud vendors for security and data protection guarantees that they can provide.

Eurostat: Finland is the leader in the number of enterprises using cloud services

A survey conducted by the statistical service European Union (Eurostat) in December 2014 showed that 51% of companies use cloud services in Finland, this is the maximum level of distribution cloud computing in Europe. Traditionally, other northern countries have high rates in this area - 39% of companies Sweden in and 38% in Denmark resort to cloud services (these countries took third and fourth places). Of the five Northern countries Europe , Norway has the worst result (28%), but this is also noticeably higher than the European average. But in the second place according to the results of the survey, it was completely unexpected (40%), which Italy had never before been distinguished by special achievements in the field of ICT. The average penetration rate of cloud services by is To the European Union 19%. The survey involved 150 thousand companies from 28 countries The^[30]

Experts consider the outsourcing strong tradition of IT services in this country to be the reason for the special popularity of clouds in Finland. According to analysts, Gartner Finnish companies are used to buying the services of third-party companies, they do not have a high barrier to adopting this model. Industry experts consider the level of cloud penetration in the country even higher: for example, Pete Niemainen of Atea Finland, a provider, IT infrastructures estimates it at 75% for Finland and 40% for other Nordic countries. One of the reasons for this (as confirmed by Gartner analysts) is the widespread distribution of model services in Finland, the SaaS penetration of which reaches 90% and which form most of its market; in cloud computing particular, according to Niemainen, almost all financial and HR applications work in the cloud.

For companies working with clouds, the most popular of the services is, predictably, e-mail, 66% of all such enterprises use it. By country, their share is highest in Italy (86%) and Croatia (85%). The second most common service is cloud storage, used by 53% of enterprises that resort to cloud services. The most popular storage services are in Ireland (74% of companies), Iceland (74%) and the UK (71%).

The rest of the services, according to Eurostat, are used by less than half of those dealing with clouds: database hosting - 39%, office applications - 34%, financial or accounting software - 31%, CRM systems - 21% and computing power for own software - 17% of companies. Interestingly, Finland's indicators for service types are very close to average: 66% of companies use e-mail, 54% use data storage services and 38% use databases.

The main factor limiting the expansion of cloud services is security problems, it was named by 39% of respondents already familiar with the clouds. In second or third place is the high cost of cloud computing and uncertainty about their legislative regulation (32% each).

The main reason why enterprises do not switch to cloud services at all remained a lack of knowledge about them in 2014 (42% of companies that do not use clouds called this reason); in second place is the risk of information leaks (37%). Other factors cited include uncertainty about where the data is (33%), uncertainty about legislative regulation (32%) and the high cost of services (31%).

Forrester Predicts Burgeoning Cloud Computing Market

The analytics company Forrester Research predicts that from 2011 to 2020, the global cloud computing market will grow sixfold - from 40.7 billion dollars to more than 241 billion. At the same time, the cost of the "public cloud" (applications and services delivered through) Internet will increase even more over the same period - from $25.5 billion to $159.3 billion.

By 2020, according to forecasts of analysts at Forrester Research (data from May 2014), the volume of the global cloud services market will reach $191 billion. Recall that three years ago, experts talked about $159 billion. The global platform services market will grow to $44 billion by 2020, and the cloud business services sector will increase to $14 billion, the SaaS segment will reach $131 billion.

Cloud growth drivers also include an increase in the number of enterprises in which managers seek to improve adaptability without significantly increasing costs, giving mobile users more opportunity to work, combining functionality and upgraded applications. Today, more and more companies are using cloud technologies not as an addition to the IT infrastructure, but as a complete replacement for classic local solutions.

Some companies, however, are in no hurry to go into the clouds. Managers' concerns are most often about data security, performance, and integration costs. As for the first point, the most exciting question is where the data will be stored, since it is absolutely unacceptable for many companies to store their internal data outside their country. In addition, not everyone still understands the principles of work, payment and is not sure about the reliability of the service. Some consumers believe that cloud storage cannot guarantee them the security of information. Another problem is the binding of customers to the provider and the difficulty in accessing the Internet of individual users. So far, non-cloud services are more profitable for customers, but over time and with the emergence of new players in the market for these services, consumer interest will increase. This will depend on lower prices and the emergence of qualified specialists in the industry.

As for the issue of the costs required to move to the cloud, it is more complex than it seems at first glance. Indeed, working in the cloud costs companies significantly less, but migration costs, especially for large companies, can be very significant.

2013

IDC Review of 5 Public Cloud Services Sub-Segments

According to IDC^[31] according to ^[31], in 2013 the global public cloud services market reached $45.7 billion and, as analysts predict, the CAGR of this market until 2018 will be 23%. As IDC analyst Frank Gens commented, in the coming years, the market will face a real battle for leadership and innovation. Moreover, penetration figures are growing in all 19 product categories, into which IDC divides the public cloud services market, and in all regions of the world. The final redistribution of the market with the installation of leading players is expected in the next 2-3 years.

Top 5 subsegments of the public cloud services market

Сегмент	Revenue 2013, thousand dollars	Market share 2013	Growth per year in the period 2013-2018
ERM(ERP)	10 780	24%	18%
CRM	8 135	18%	20%
Серверные решения	3 981	9%	26%
Приложения совместной работы	3 374	7%	26%
Решения для безопасности	2 922	6%	18%
Другие	16 556	36%	26%
Всего	45 748	100%	23%

IDC, 2014

In the public cloud services market in 2013, 72% of revenue was accounted for by SaaS, on average, during the period until 2018, this segment will grow by about 20% annually. The main tone in this segment is set by corporate solutions, including ERM, CRM, as well as solutions for collaboration, and the contribution of cloud security services, system management and cloud storage. The top three in the SaaS world segment in 2013 were (in descending order of share) Salesforce, ADP and Intuit, in fourth and fifth place were Oracle and Microsoft.

The segment PaaS accounted for 14% of the global public cloud services market in 2013, annual growth here is predicted to be even higher than in SaaS - at 27%. In 2013-2014, the driver for this segment will be the active use of data management solutions and intermediate-level services for application servers. In this segment, they are in the lead, and Amazon.com, Salesforce and Microsoft close the top five GXS and. Google

As for IaaS, the growth rate of this segment will be the maximum 31% per year, in 2013 its volume was $3.6 billion. The top five here include Amazon.com (40% of the market), RackSpace, IBM, Lumen Technologies (formerly CenturyLink) and Microsoft.

Regionally, 68% of the global public cloud services market in 2013 was concentrated in the United States, Western Europe accounted for 19%. By 2018, according to IDC forecasts, the US share will decrease to 59%, and Western Europe will grow to 23%.

Results from Parallels SMB Cloud Insights

The results of the Parallels SMB Cloud Insights study show an increase in the penetration of cloud services and a combined annual growth rate (CAGR) of the global market of 26%. According to the company's forecasts, this market will reach 125 billion by 2016. dollars USA

• The growth rate of the communications and collaboration solutions market, including corporate e-mail and virtual PBXs, is significantly ahead of the rest of the cloud market. They make up 37%: from $4.8 billion in 2012 to $6.5 billion in 2013. This market is expected to reach $20 billion by 2016;

• IaaS services (infrastructure as a service) form the second fastest growing market (27%): it will amount to $42 billion by the end of 2016;

• In mature markets, each SMB enterprise currently uses an average of five cloud services. According to the company's forecasts, by 2016 there will be nine of them.

• In 2013, the global cloud services market grew to US $62 billion. It will continue its growth at 26% by 2016 at $125 billion;

• In the United States, the cloud market for small and medium-sized businesses is now $24 billion, the forecast is at a CAGR of 17% by 2017. The drivers of this growth are cloud-based unified communications services and other business applications, which grew by 32%. The pace of development of the US cloud market, according to preliminary estimates, will reach 16% by 2017;

• In Brazil, Parallels analysts predict 31% growth in the SMB market. It will reach US $4 billion by 2017;

• In Mexico, the cloud market growth rate for SMB will be 36%: from only US $650 million in 2014, the market will reach 1.5 billion in 2017, confirming its status as the developing and one of the fastest growing among the world's cloud markets;

• The cloud services market Russia is comparable in size to the Mexican market. In 2013, its volume amounted to US $633 million, CAGR - 32%, bringing it to $1.7 billion by 2016, also relating to emerging cloud services markets.

The Parallels SMB Cloud Insights report divides cloud services for SMB into four key categories: infrastructure as a service (IaaS), web presence and web application services, communications and collaboration solutions, and cloud business applications (SaaS). Since the release of the previous report, services such as cloud servers ( in the IaaS category) and new popular applications for communication and collaboration have been added to it, which is why this category is now called "United Communications."

The Parallels SMB Cloud Insights study includes reports for 14 countries:,,,, the Great Britain France Spain Germany Netherlands, Poland, China,,, India Japan Australia and Russia, as well as general reports for regions such as Europe Southeast. Asia

SAP: By 2016, 70% of CIOs will consider the transition to the clouds as task No. 1

By 2016, more than 75% of all new IT expenses will be associated with cloud services, more than 70% CIO will consider the transition to cloud solutions as strategic goal No. 1, and more than 80% of IT decisions will be made jointly with business leaders - these are the prospects for the development of the cloud services market (data SAP December 2013). Russia cloud market Growth is ahead of the global level: according to forecasts, IDC the domestic cloud services market will grow much faster than the IT market as a whole, and by the end of 2016 the volume of this segment will be more than 460 million, and the CAGR will be more than 50%.

2012: Cloud Services Market $40bn

According to IDC, the overall cloud services market will grow from approximately $40 billion in 2012 to $98 billion in 2016. This figure is made up of forecasts for the growth of software services to $37 billion. (SaaS), growth of infrastructure services up to $30 billion. (IaaS), the development of infrastructure software services up to $20 billion and the growth of platform services (PaaS) up to $10 billion by 2016.

2011

Forrester's forecast for the public cloud market through 2020

In April 2011, the analytical company Forrester Research published a forecast for the development of the public cloud computing market until 2020. According to the report, by 2020 the volume of the cloud market will be $241 billion, which is $200 billion more than in 2011.

Among the most interesting conclusions of the report, it should be mentioned the forecast that the peak of the IaaS market will be in 2014, when its volumes will reach $5.9 billion. After that, the market will gradually shrink due to the satisfaction of demand and increased competition.

As for the SaaS segment, it will experience steady growth: if in 2011 its volume will amount to $21.2 billion, then in 2016 it will reach $93 billion. At this point, the SaaS segment will be close to saturation. As for the PaaS market, its volumes will remain relatively small compared to SaaS, although in 2014 the PaaS segment will surpass IaaS in volume. In addition, analysts at Forrester Research predict that the virtualization market will also gradually shrink due to their replacement with newer technologies.

Cloud Computing Market Size Growth Forecast by Segment

Forrester Research, 2011

It is noteworthy that the BPaaS segment, which today not everyone agrees to classify as cloud computing, according to Forrester Research forecasts, will surpass the traditional segment of IaaS infrastructure cloud services by 2020 and approach the PaaS segment. The main growth of BPaaS will occur from 2015 to 2020.

SMBs are drivers in cloud consumption

According to IDC, in 2011 the cost of cloud services grew four times faster than the entire IT market.

At the Parallels Summit 2012 held on February 14-16, 2012 in Orlando (USA), Parallels (Parallels Software) presented its own study of the purchasing power of medium and small businesses (SMB) as the main consumer of cloud services. The study continues a series of reports explaining why Parallels itself and service providers should focus on developing services for SMB. Confirmation is the fact that most SMBs will double the consumption of cloud services in the next three years.

Here are some data from the SMB Cloud Insights study:

• SMB is still the growth driver of the cloud services market: in 2011, US SMBs consumed cloud services by 25% more than in 2010, bringing the market volume to $15.1 billion;

• The global cloud services market will increase by 26% (CAGR) from $34 billion in 2011 to $68 billion by 2014;

• In 2011, SMB spent $14 billion on infrastructure hosting (IaaS - virtual and dedicated servers, rental of virtual machines); $7 billion - for services to ensure the presence on the Internet (web presence - domains, sites, SSL, widgets for online stores); $4 billion - for communication and collaboration services (mail, email security and archiving, telephone exchange rentals including PBX and VoIP); $9 billion - for business applications (SaaS - content management systems, file sharing, accounting, recovery and backup, CRM , HR, payroll);

• 75% of companies with fewer than twenty employees already rent their IT infrastructure, and do not support it independently;

• SMBs consume much more than just web presence services: 45% of SMBs in the United States use Facebook pages to promote their business. This is a signal to service providers to include vertical cloud services in the web presence package, such as presence in social media, content management and customer relationship management (CRM);

• Over the next three years, SMB plans to double the consumption of paid cloud applications. The structure of demand for applications will be highly dependent on the size of the company: micro-businesses and small companies are interested in backup, file sharing, accounting and mail archiving applications, while medium-sized enterprises need, for example, more telephone conference services. According to experts, the volume of use of services based on "cloud" solutions will grow in other market segments. For example, according to a recently published study by Cisco, which provides a forecast for the development of global mobile traffic for 2011-2016, it is noted that due to the fact that users of mobile communication services are increasingly in need of receiving content "on demand," the volume of "cloud" traffic transmitted over mobile networks will increase by 28 times by 2016, and its average annual growth rate will be 95%.

Symantec: IT Evolution Clouds in the Financial Sector in EMEA

Financial organizations To Europe are more involved in the process of adapting new ones, information technology including virtualization, clouds, and mobile technologies, than companies in other industries. In addition, banks insurance companies EMEA also have sufficient IT budgets for such experiments.

This is the conclusion reached by Symantec experts in a new study called Evolution of IT in the Finance Industry 2011. As part of the study, a survey was conducted among companies in the region, and it turned out that 81% of financial structures really discuss the introduction of cloud technologies, in other industries this figure is only 70%.

Question: At what stage is your organization in each of the proposed areas? (survey among financial sector companies)

Source: Symantec, February 2012 

EMEA financial institutions are also more advanced in the application of virtualization than cloud computing: 60% of financial organizations either use or have already used server virtualization, in other industries this figure is 45%. However, this sector is more restrained on private/hybrid cloud issues - only 17% of respondents plan to move critical applications to hybrid/private clouds in the next 12 months.

The budgets of financial institutions are ready for virtualization and cloud computing: in this sector, more survey participants noted that their companies have an appropriate budget for virtualization and private/hybrid clouds than in other industries.

One of the main factors in making decisions about virtualization implementation remains security issues. 64% of financial companies that noted that they were not going to move to hybrid/private clouds identified security as the main reason. This contrasts vividly with the results of a survey of representatives of other industries, where only 31% gave similar answers.

The study's findings also suggest there is an imbalance between what financial structures expect from these technologies and their real-world capabilities, the report said. The most striking example is the Private Storage-as-a-Service, which reflected all the signs of an immature market. The most realistic were expectations in server virtualization, where most financial corporations really achieved increased flexibility, reliability and reduced the time to transition to new servers.

Cisco estimates cloud traffic growth

Cisco is studying the growth of cloud data traffic. In November 2011, Cisco published its first report on the results of a study of global cloud computing trends - the Global Cloud Development Index from 2010 to 2015 (Cisco Global Cloud Index (2010-2015). It contains a forecast that by 2015 the annual volume of "cloud" traffic will grow 12 times from 130 exabytes to 1.6 zettabytes, and its average annual growth rate will be 66 percent.

One zettabyte is equal to one sextillion bytes or one trillion gigabytes. The traffic volume of 1.6 zettabytes is:

• 22 trillion hours of streaming music;
• 5 trillion hours of business web conferences with webcams;
• 1.6 trillion hours of online high resolution (HD) video streams.

The cloud has become the fastest growing segment of data center (DPC) traffic. By 2015, the total annual volume of data center traffic will grow 4 times to 4.8 zettabytes, and the average annual growth rate of this traffic will be 33 percent. Currently, the share of cloud traffic in total data center traffic is 11 percent. By 2015, it should exceed 33 percent. Thus, the cloud is becoming critically important for the future of information technology, as well as for the delivery of video and content.

The move to cloud services is driving global cloud traffic to grow at twice the rate of global data center traffic. Between 2010 and 2015, global data center traffic will grow 33 percent annually and quadruple, while global cloud traffic will grow 66 percent annually and increase 12 times over the same period.

The average annual growth rate of traffic on the network will be 66% - from 130 exabytes to 1.6 zetabytes, which are equivalent to 22 trillion hours of music playback or 5 trillion hours of web conferences with a webcam, or 1.6 trillion hours of streaming HD video online. The cloud is the fastest growing component of data center traffic, which itself will quadruple and reach 4.8 zetabytes by 2015, Cisco said.

According to her, today cloud traffic accounts for 11% of data center traffic. At the same time, by 2015 it will amount to more than 33% of the total volume. Expanding virtualization and saving enterprises on the scale of data will be key factors for moving to the cloud. Cloud data centers offer better performance, better data utilization, and easier management than traditional data centers.

By 2015, 76% of data center traffic will be created by the data center itself as workloads moving between different virtual machines and background tasks. 17% of the total traffic will be for information delivery to end users, and another 7% will be generated during the exchange between data centers to enhance the performance of "clouds," data replication and updates.

However, according to Cisco, due to the growing demand for consumer video services, data center-user traffic will have significant spikes in activity. The average data center traffic per hour during peak periods is expected to increase by 2.5 times, which will require planning additional capacity, both data centers and the cloud, and the network. At the same time, Cisco believes that the cloud-on-demand service model is optimized for this type of unstable demand.

All this means that the use of cloud technologies will grow in comparison with traditional data centers. In 2010, loads of 21% fell on cloud data centers. 79% were processed in traditional data centers. 2014 will be the first year that the load balance shifts toward the cloud, Cisco said.

At the same time, 51% of the total workload will be in the cloud and 49% in the traditional IT space, according to the company. According to Cisco, data center workloads will nearly triple from 2010 to 2015, while cloud workloads will grow more than sevenfold in the same time period.

The study covered all regions of the world and according to it, taking into account factors such as broadband access, average download and download speeds, average latency - Asia-Pacific, the Middle East and Africa, Western Europe, Central and Eastern Europe, Latin America and North America are currently ready to use basic cloud computing applications such as social networks and web conferences.

For cloud applications such as video chat and high-definition video streaming, the average bandwidth of networks is considered sufficient to support these services in Asia-Pacific, Western Europe, Central and Eastern Europe and North America. However, according to the assessment, no region has the ability to support "advanced" cloud applications, such as HD video conferences and developed gaming applications. However, in some countries in each region, such as South Korea and Japan, these services can currently be implemented, Cisco says.

The study Cisco - Global Cloud Index, is based on modeling and analysis of various main and secondary sources. It includes the results of the exchange of more than 30 TB of data transmitted each month, throughout the year, between different data centers around the world. More than 45 million broadband speed tests were carried out, and third-party market forecasts were also used.

Cloud development in France

The leaders in the development of cloud technologies and services in France are:

• Atos,
• Cap Gemini,
• Steria,
• Orange и
• SFR.

ATOS created Yunano, a joint venture with Ufida, a Chinese company. Together they will release management software in cloud service mode, as well as sell related services.

Systancia is a French software manufacturer operating in Alsace and in the Île-de-France metropolitan area. She is one of the European leaders in turning user programs into cloud services (application and workplace virtualization).

New players emerging in France are entering a market that provides them with conditions that stimulate development. French law provides strong data protection and processing; and data coding legislation (L 2004-575 of 21/06/2004 and D 2007-663 of 2/05/2007) allows, in particular, to take into account the degree of secrecy of data trusted by the player.

Joyent, based in the Île-de-France region since 2010, has been supplying service infrastructure (IaaS) to companies such as LinkedIn, Disney, CNN, Facebook, Yahoo or Vente-privee.com. It also supplies open source PaaS platforms for publishers, hosting, or specialized companies (Dell, First service). The startup company is a pioneer in cloud apps, and it competes with groups like Amazon EC2 and Microsoft Azure. Dell signed an agreement (Original Equipment Supplier) with Joyent in 2010 to use its Smart Technologies application. This allows Dell to offer customers turnkey cloud applications from its own servers.

Eight clusters (competitiveness zones) located in France are currently engaged in cloud applications:

• Cap Digital et System @ tic (Île-de-France region),
• Elopsys (Limousin region),
• Images et réseaux (Brittany and the Loire Lands),
• Imaginove et Minalogic (Rhone-Alpes),
• Solutions Communicantes Sécurisées (регион PACA),
• TES (Lower Normandy).

In 2011, the French government held the first competition for the right to perform a research project in the field of "cloud" applications as part of the "Investment Program for the Future." In total, five projects (19 million euros) will be able to use state support:

• software engineering platform (CloudForce project, Orange Labs),
• application media (Prologue CloudPort project),
• a high-performance software infrastructure project (Bull's Magellan project),
• a cloud project for communities (Nu @ ge by Non Stop Systems) and
• a cloud application project for higher education institutions (INEO's UnivCloud project).

The www.investirdanslenumerique.fr website was created by the French Association of Software Manufacturers (AFDEL) to facilitate the procedure for submitting documents for the creation of the project.

2010: $74bn spent on public cloud services

According to a Gartner report (October 2011), in 2010, $74 billion was spent by companies on public cloud services, which amounted to only about 3% of their total IT spending In 2012, enterprises will spend $2.7 trillion on IT. In EMEA, the financial sector is the most advanced in terms of cloud computing and virtualization.

Global "cloud programming" and related services market revenues reached $68.3 billion in 2010.

In Europe, the cloud services market grew by 20% in 2010. Cloud services could reach a 15% share of the entire European software and related services market by 2015.

The French "cloud applications" market reached 1.85 billion euros in 2010, of which 672 million euros were in small and medium-sized businesses. Thanks to the rapid growth of this market, its volume in 2012 should exceed 2 billion euros: it will account for perhaps 6% of the entire French software market and related services (according to Nexima estimates).

See also