Cloud Market Prized at $148bn for Past Year, Rising 25% Annually

Operator and vendor returns across the main infrastructure and cloud services market segments hits $148 billion in 2016 rising at the rate of 25% annually.

Platform as a service (PaaS) and Infrastructure as a service (IaaS) experienced the highest growth rates at 53%, trailed by the hosted private cloud infrastructure services, at 35%, and enterprise SaaS, at 34%. Microsoft lead the way in IaaS and PaaS, Amazon Web Services (AWS) with IBM and Rackspace on top for hosted private cloud.

In the four quarters, total spend on hardware and software to build cloud infrastructure overdid $65bn, according to the researchers. Spend on private cloud accounts for more than half of the overall total, but public cloud spend is growing much more rapidly.

2015 is marked as the year when cloud became conventional and 2016 is the year that cloud started dominating many IT market segments . Main barriers to cloud acceptance are now almost a thing of the past, particularly on the public cloud side. Cloud technologies are now generating huge revenues for technology vendors and cloud service providers and yet there are still many years of solid growth ahead.

The most recent examination of the cloud infrastructure market shows that AWS, Microsoft, IBM and Google continue to grow more quickly than their minor competitors and, between them, own more than half of the global cloud infrastructure service market.