Staff Report
Dubai: The worldwide public cloud services market continue to grow 18.5 percent this year, with revenue to reach $260.2 billion, up from $219.6 billion in 2016, according to Gartner, Inc.
“Final data for 2016 shows that software as a service (SaaS) revenue was far greater in 2016 than expected, reaching $48.2 billion,” said Sid Nag, research director at Gartner. “SaaS is also growing faster in 2017 than previously forecast, leading to a significant uplift in the entire public cloud revenue forecast.”
SaaS revenue is expected to grow 21 percent in 2017 to reach $58.6 billion. The acceleration in SaaS adoption can be explained by providers delivering nearly all application functional extensions and add-ons as a service.
“Strategic adoption of platform as a service (PaaS) offerings is also outperforming previous expectations, as enterprise-scale organizations are increasingly confident that PaaS will be their primary form of application development platform in the future,” said Mr. Nag. “This accounts for the remainder of the increase in this iteration of Gartner’s public cloud services revenue forecast.”
The highest revenue growth will come from cloud system infrastructure services infrastructure as a service (IaaS), which is projected to grow 36.6 percent in 2017 to reach $34.7 billion.
