Gartner thinks cloud services industry revenues will increase by 17.5% during 2019, reaching a high of $214.3 billion by the end of the year, up from $182.4 billion at the end of last year.
The most significant rise will be in infrastructure-as-a-service (IaaS), which the research firm is predicting will grow by 27.5% over the 12-month period. Platform-as-a-service (PaaS) revenues will also experience a hefty jump this year, with 21.8% year-on-year growth.
Other big players in 2019 will be those focusing on business process-as-a-service that's set to accelerate fast by 2022, with forecasted revenues of $61.1 billion compared to 2018's revenues of $45.8 billion and cloud management and security, with revenues increasing from $10.5 billion up to $17.9 billion.
"Cloud services are definitely shaking up the industry," said Sid Nag, research vice president at Gartner. "At Gartner, we know of no vendor or service provider today whose business model offerings and revenue growth are not influenced by the increasing adoption of cloud-first strategies in organisations. What we see now is only the beginning, though. Through 2022, Gartner projects the market size and growth of the cloud services industry at nearly three time the growth of overall IT services."
Tech providers are taking this seriously and are shifting towards a cloud-only model, from the previous cloud-first approach. By scrapping legacy systems, vendors can generate higher ongoing subscription revenues, while businesses benefit from lower upfront costs.
"Organisations need cloud-related services to get onboarded onto public clouds and to transform their operations as they adopt public cloud services," Nag said.
"As cloud continues to become mainstream within most organisations, technology product managers for cloud related service offerings will need to focus on delivering solutions that combine experience and execution with hyperscale providers' offerings," said Mr Nag. "This complementary approach will drive both transformation and optimisation of an organisation's infrastructure and operations."
