The newmarket report from the Synergy Research Group shows that -associated markets, such as the public , are growing at rates ranging from 10% to over 40% and the annual spending on the may double in four years.
IaaS & PaaS Biggest Growth
Synergy’s half-yearly report shows that, across the seven keyservice and infrastructure market segments, revenues for operator and vendors in the first half of 2019 exceeded $150 billion, which is a rise in growth of 24% from the first half of 2018.
The biggest area of growth in theinfrastructure sector was in the infrastructure as a service (IaaS) and platform as a service (PaaS) market segments where there was a massive 44% growth rate. IaaS is online, virtualised computing resources over the internet, and PaaS is where a provider hosts the hardware and software on its own infrastructure with PaaS products enabling developers to build custom applications online without having to worry about data serving, storage, and management.
The Synergy report also showed growth rates of enterprise SaaS at 27%, UCaaS at 23% and hosted privateinfrastructure services at 20%. The report also shows that spending on services is now much greater than spending on supporting data centre infrastructure.
In the first half of 2019,service provides spent $55 billion on the hardware and software used to build infrastructure (evenly split between public and private clouds). These infrastructure investments helped service providers to generate over $90 billion in revenues from their infrastructure services (IaaS, PaaS, hosted private services) and enterprise SaaS.
The Synergy report shows that the leaders in the IaaS and PaaS segments in the first half of 2019 are Microsoft, Amazon/AWS, Dell EMC, Cisco, HPE and Google. Back in February, Amazon’s Web Services (AWS) reported a massive 45% growth in the revenue of the fourth quarter, mostly fuelled by big profits in its publicarm.
Other big names in that market segment include Salesforce, Adobe, VMware, IBM, Digital Realty, Equinix and Rackspace.
All these big players together account for over half of all-related revenues.
What Does This Mean For Your Business?
The publicis being embraced by businesses as they seek to outsource and ditch traditional capital investment and maintenance problems and costs while reaping the benefits of having the pay-as-you-go scalability, security, and outsourced expertise that allows them to free up more of their own resources. service providers are now investing heavily to win large slices of the market with Amazon and Microsoft as market leaders, and as the Synergy report shows, this investment is delivering big revenues and impressive growth rates, particularly in the IaaS and PaaS market segments.