Gartner: Cloud computing revenues to jump in coming years

STAMFORD — Public cloud-services technology revenues are projected to grow by more than 50 percent in the next three years, to about $355 billion in 2022, according to a new report from IT consulting and research firm Gartner.

Cloud-application services, also known as software-as-a-service, would remain by far the largest segment of the cloud-computing market. Its predicted returns would surge by about 75 percent in the next three years, to approximately $151 billion in 2022, reflecting companies’ ability to scale up their use of such subscription-based software.

Cloud-system infrastructure services, also known as infrastructure-as-a-service, would see their revenues more than double, to about $74 billion, by 2022, Gartner projected. The firm attributes the growth to the demands of modern applications and workloads, which they say require infrastructure that traditional data centers cannot meet.

“At this point, cloud adoption is mainstream,” Gartner research vice president Sid Nag said in a statement. “The expectations of the outcomes associated with cloud investments therefore are also higher. Adoption of next-generation solutions are almost always ‘cloud-enhanced’ solutions, meaning they build on the strengths of a cloud platform to deliver digital business capabilities.”

As organizations increasingly rely on cloud technology, IT teams are embracing cloud-built applications and relocating existing digital assets, according to Gartner.

By 2022, up to 60 percent of organizations would use an external provider’s “cloud-managed service offering,” double the rate in 2018, Gartner predicted.

“Building, implementing and maturing cloud strategies will continue to be a top priority for years to come,” Nag said. “The cloud managed service landscape is becoming increasingly sophisticated and competitive.”