Business Cloud News

Money cloudCloud services boomed in 2015 as the barriers to adoption toppled and confidence surged, says a new study. Operators and vendors in the six major cloud services and infrastructure market groups earned $110 billion in the four quarters ending in September 2015, according to new data from Synergy Research Group. This represents an annual growth rate of 28% on average.

The fastest growing sectors, Public Infrastructure as a Service (IaaS) and Platforms as a service (PaaS) grew at almost double the average rate, however, with a 51% increase in revenues in the 12 month period. Perhaps surprisingly, the public cloud is still growing at a faster rate than the hybrid cloud, which many pundits have tipped to be the immediate future for enterprise computing as companies hedge their bets between on and off-premise computing models.

The private and hybrid cloud infrastructure service markets grew by 45%. However, spending on infrastructure hardware and software is still higher than spending on cloud services, but the gap is narrowing rapidly. The top six companies in the hybrid cloud sector were identified as Cisco, HP Enterprise (HPE), AWS, Microsoft, IBM and Salesforce.

Even the lowest performing cloud sectors grew by 16%, Synergy reported.

The latest yearly figures, measured in the period from Q4 2014 to Q3 2015, showed that the total spend on infrastructure hardware and software to build cloud services exceeded $60 billion. Of that $60 billion, at least $30 billion was apportioned to private cloud projects. However, spending on public cloud projects, while in the minority, is growing much more rapidly.

The investments in infrastructure by the cloud service providers brought a return, the analyst says, as the figures show it helped them to generate $20 billion in revenues from cloud infrastructure services (IaaS, PaaS, private & hybrid services) and a further $27 billion from SaaS. There was also a return from additional income sources arising out of supporting internet services such as search, social networking, email and e-commerce. A new sector is emerging, as unified communications as a service (UCaaS) began to show healthy growth and, according to Synergy, is showing signs of driving some radical changes in business communications.

Last year the cloud became mainstream and moved beyond the early adopter phase as barriers to adoption fell, according to Synergy Research Group’s Chief Analyst Jeremy Duke. “Cloud technologies are now generating massive revenues and high growth rates that will continue long into the future,” said Synergy Research Group Chief Analyst John Dinsdale.