According to new research from IHS Markit, the global off-premises cloud services market is expected to reach $414 billion by 2022, growing at a five-year compound annual growth rate (CAGR) of 19.9 percent.
These estimates are slightly higher than previous estimates in May from the research firm, which predicted that this same market would reach $374 billion in the same time frame. According to IHS Markit Senior Analyst Devan Adams who led this research, the reason for the increased projections is that there has been steady growth in established cloud regions and improved growth in developing regions particularly in the Asia Pacific region.
IHS Markit analyst Cliff Grossner told SDxCentral in May that the company refers to the category as “off-premises cloud” rather than public cloud because “public cloud, in our opinion, is an architecture and is only one architecture for services supplied by cloud service providers.”
Adams added that off-premises cloud services include both “public or private network-delivered services offered by a third party.”
The off-premises cloud market research includes the market segments Cloud-as-a-Service (CaaS), Infrastructure-as-a-Service (IaaS), Software-as-a-Service (SaaS), and Platform-as-a-Service (PaaS). Of these categories, IHS Markit predicts that CaaS will have the largest growth, growing at a five-year CAGR of 31.6 percent, with PaaS following closely behind with a five-year CAGR of 31.3 percent.
According to Adams, CaaS targets mainstream enterprises. It provides them with a pre-configured application execution environment, which can also be operated by cloud service providers.
PaaS, on the other hand, is more targeted toward developers. PaaS provides developers with pre-built application components with cloud service providers being able to architect the application infrastructure. This includes architecting databases, web servers, compute, and load balancing for scale and operations.
And as multi-cloud environments become more prominent, Adams noted that there have been a number of cloud service partnerships that are driving the evolution of this market. This is because cloud service provider customers are using more than one for “specific business needs,” which expands the use of multi-clouds for a number of application deployments.
IHS tracked the following cloud service providers for this research: Amazon, Alibaba, Baidu, IBM, Microsoft, Salesforce, Google, Oracle, SAP, China Telecom, Equinix, Digital Realty, Deutsche Telekom, Tencent, China Unicom, and others.