Cloud investment now a top priority for over a third of organisations

Public cloud services revenue expected to surpass $200bn this year, claims Gartner

The public cloud services market is set to see massive growth as a third of organisations now see cloud investments as a key priority, according to Gartner

The analyst firm also expects that more than 30 per cent of technology firms' new software investments will move from cloud-first to cloud-only by the end of 2019.

"Organisations need cloud-related services to get onboarded onto public clouds and to transform their operations as they adopt public cloud services," stated Sid Nag, research vice president at Gartner.

"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.

"This complementary approach will drive both transformation and optimisation of an organisation's infrastructure and operations."

Almost 19 per cent of cloud budgets are spent on cloud-related services, such as cloud consulting, implementation, migration and managed services. The analyst firm predicts that this will rise to 28 per cent by 2022.

The global public cloud services revenue market is expected to grow considerably in the next three years as companies continue their cloud investments, the research house added.

The market is expected to grow 17.5 per cent this year to hit revenues of $214.3bn (£162.7bn), with Gartner expecting revenue to surpass $300bn by 2022.

According to Gartner the fastest-growing market segment will be infrastructure as a service (IaaS), which is projected to grow 27.5 per cent to total $38.9bn in 2019. This is followed by platform as a service (PaaS) which is set to see a growth rate of 21.8 per cent.

Cloud services are definitely shaking up the industry," said Nag.

"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 times the growth of overall IT services.