Hyperscale providers will account for 80% cloud market share, will lead in equipment spend

Cloud and SaaS service revenue will surpass USD 200 billion by 2020

Hyperscale providers will account for 80% cloud market share, will lead in equipment spend - CIO&Leader

Hyperscale cloud providers will soon account for over 80% of all cloud and SaaS service revenues and almost 40% of spend on all public and private data center equipment, according to latest research by Synergy Research Group.

Today, 24 hyperscale companies have a global footprint comprising over 360 large datacenters and this figure will continue to grow by almost 20% per year, the research further finds.

Worldwide revenues from cloud and SaaS services will grow at an average annual rate of 23-29% over the next five years, passing the USD 200 billion milestone in 2020, says the SRG research. This will help to pull through 11% annual growth in sales of infrastructure to hyperscale cloud providers. Sales of hardware and software to enterprise datacenters will continue to slowly decline, reflecting the ongoing shift in workloads from privately owned infrastructure to the public cloud, the research ascertains.

Across the major cloud service categories, public IaaS/PaaS will see the strongest growth at an average 29% per year, while managed or hosted private cloud service revenues will grow by 26% per year and enterprise SaaS 23%.

According to SRG, strong growth will continue to be seen across all the major cloud service segments, with database and IoT-oriented IaaS/PaaS services and ERP within enterprise SaaS registering highest growth. Among regions, APAC will be the highest growth region, followed by EMEA and North America, says SRG.


Event date: 
Tuesday, July 18, 2017

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