Gartner has recently released very up-beat figures about projected growth of the public cloud market. In the year 2021, the total spending on public cloud services could surpass the US $332 BN mark.
This translates into a Compound Annual Growth Rate (CAGR) of 23% when compared to the year 2020. In 2020, the total end user spend on public cloud services combined was US $270 BN. The research giant has forecast steady growth over the next few years.
It is expected that by the year 2025, the cumulative size of the public cloud market could reach US $692 BN. This translates into a CAGR of over 16% between the years 2019 and 2025. This is a significant growth given the present economic uncertainty.
According to the research conducted by Gartner, the single most notable factor behind this strong growth is remote work. A record number of enterprises have turned to the Cloud in a bid to sustain remotely working employees.
From a technological standpoint, it is believed that edge computing, containerization and desktop as well as app virtualization quickly became mainstream. Another factor that boosted this growth was shifting of complex workloads to the Cloud.
A sizable chunk of this total spending, 36% to be precise, comes from revenue generated by cloud powered Software as a Service (SaaS) solutions. In dollar terms, this translates into a segment whose total size could exceed US $122 BN.
Customer Relationship Management (CRM) or Customer Experience Management remained the most dominant sub-category within the SaaS segment. Cloud powered Enterprise Resource Planning (ERP) solutions are the second largest SaaS category.
During 2021, it is expected that the Desktop as a Service (DaaS) market will exhibit a phenomenal growth of 67%. Infrastructure as a Service or IaaS will see the second biggest revenue jump of over 38%.
Lastly, the instant scalability that is being offered by leading Cloud Service Providers (CSP) like dinCloud has prompted enterprises to shift towards the Cloud from traditional and legacy, on-premise systems.
According to Gartner, this strong growth momentum may continue till the year 2025. This in turn will increase the influence of Public Cloud Service Providers like dinCloud and their cloud powered solutions to a great extent.