More Indications that IaaS is Driving Cloud Growth…What Else is New?

In Gartner’s latest report on public cloud computing adoption, entitled “Forecast Overview: Public Cloud Services, Worldwide, 2011-2016, 4Q12 Update Published: 8 February 2013,” we learned that cloud computing is growing, and much of this growth is coming from the IaaS portion of the market.  We already know that.

Gartner reports that global spending on public cloud services is expected to grow 18.6% in 2012 to $110.3B, achieving a compound annual growth rate (CAGR) of 17.7% from 2011 through 2016. Thus, the total market is expected to grow from $76.9B in 2010 to $210B in 2016.

Moreover, Gartner predicts that IaaS will achieve a CAGR of 41.3% through 2016, which is the fastest growing area of public cloud computing the research firm tracks.  PaaS will achieve a 27.7% CAGR through 2016, with Cloud Management and Security Services attaining 26.7% in the same forecast period.

The interest in IaaS public clouds is driven by enterprise and government growth in IT, and the new and more cost efficient options that IaaS public clouds are offering these days.  Amazon Web Services is now a $2 billion dollar company in this exploding market.

What I find interesting are the offerings from IaaS providers these days.  For instance, with Amazon Web Services now providing development and database services on demand, they are expanding into areas once the exclusive domain of PaaS providers.  Also, Google, once known only for its PaaS offering, now offers IaaS services, such as storage.  It’s unclear if those services are being counted as PaaS or IaaS, and it will be harder and harder to make the distinction in the future.