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IaaS set to grow strongly

Gartner is forecasting an uptake in public cloud spending with IaaS getting the largest cut of that investment

Those resellers that have taken the effort to specialise in infrastructure as a service (IaaS) should be set for a good few months.

Forecasts from Gartner are highlighting IaaS as the main area to benefit from a general upswing in customer spending on public cloud services.

The analyst house expects worldwide spending on public cloud services to increase by 18% this year, which equates to $246.8bn in monetary terms.

Breaking that down into technology the IaaS market is expected to grow by 36.8% this year with SaaS not too far behind with a 20.1% year-on-year increase on the cards.

The SaaS market is expected to slow a bit quicker because it is further along in the maturity cycle and a lot of customers are already using HR and sales applications in the cloud.

Customer attitudes towards public cloud have improved as firms like AWS wage a relentless war of positive pr around the idea of putting data onto their platforms.

Fears about security are still out there but with pressure to crank up digital transformation strategies so does an acceptance from most users that the public cloud will play some role in their future.

"The overall global public cloud market is entering a period of stabilization, with its growth rate peaking at 18% in 2017 and then tapering off over the next few years," said Sid Nag, research director at Gartner.

"While some organizations are still figuring out where cloud actually fits in their overall IT strategy, an effort to cost optimize and bring forth the path to transformation holds strong promise and results for IT outsourcing (ITO) buyers. Gartner predicts that through 2020, cloud adoption strategies will influence more than 50% of IT outsourcing deals," he added.

There are various reasons why customers are looking to include a public cloud dimension, including the flexibility and scalability that it offers.

The vast majority of resellers are already pitching a hybrid message and Gartner is also stressing that public cloud will be a feature of a wider strategy, not necessarily the complete end goal.

"While all external-sourcing decisions will not result in a virtually automatic move to the cloud, buyers are looking to the 'cloud first' in their decisions, in support of time-to-value impact via speed of implementation," said Nag.

Read more on Infrastructure-as-a-Service (IaaS)