Report: Public Cloud Now Generating Over $20B In Quarterly Revenues For IT Companies
In addition, $12 billion is being generated from selling IaaS, PaaS, and SaaS to enterprise customers.
New Q2 data from Synergy Research Group shows that public cloud is now generating well over $20 billion in quarterly revenues for IT companies, with $10 billion going to companies supplying public cloud operators with hardware, software, and data center facilities and $12 billion being generated from selling IaaS, PaaS, and SaaS to enterprise customers. In addition the public cloud is helping to support huge revenue streams from a variety of internet services such as search, social networking, email and e-commerce platforms. On the supply side the companies with the biggest share of revenues are Cisco, HP, Dell, IBM and Equinix. On the cloud services side the market leaders are AWS, Microsoft, Salesforce, Google, and IBM.
The public cloud continues to make big inroads into the total IT market. Hardware and software used to build public clouds now account for 24% of all data center infrastructure spend, while public cloud operators and associated digital content companies accounts for 47% of the data center colocation market. While the total IT market grows at less than 5% per year, IaaS/PaaS revenues have grown by 49% over the past year and SaaS has grown by 29%.
“Public cloud is now a market that is characterized by big numbers, high growth rates and a relatively small number of global IT players,” said Jeremy Duke, Synergy Research Group’s founder and chief analyst. “While there is still a place for small-medium sized public cloud players, especially on the service side within a specific region, the public cloud really is dominated by hyperscale cloud operators that can afford to build huge data center footprints that span multiple continents,” added John Dinsdale, a chief analyst and research director.
This article was originally posted “Report: Public Cloud Now Generating Over $20B In Quarterly Revenues For IT Companies” from Cloud Strategy Magazine.