Market Monitor, a service of 451 Research, announced on Tuesday it has released a new Cloud as a Service Overview report projects that cloud market revenue will increase at a 36 percent compound annual growth rate to reach nearly $20 billion at the end of 2016.
Industry research company MarketsandMarkets released two separate reports which projected the government cloud market will be worth $18.48 billion by 2018, and that the cloud community market will be worth $2.49 billion by 2018.
Included in the report is the current market size and five-year growth rates for the infrastructure as a service, platform as a service and infrastructure software as a service segments.
In addition, the report faetures a competitive landscape analysis for each of these three category, along with projected revenue generated by 309 cloud services providers and technology vendors across 14 sectors.
Using 451 Research’s insight into established cloud vendors and startups, Market Monitor is aided by active participation from sector analysts to incorporate the traits, strengths and weaknesses of each market participant.
When coupled with the qualitative research from 451 Research, Market Monitor provides a “deep, holistic view of the cloud computing marketplace,” according to the press release.
“Cloud computing is on the upswing and demand for public cloud services remains strong,” said Yulitza Peraza, analyst for quantitative services at 451 Research and coauthor of the report. “However, public cloud adoption continues to face hurdles including security concerns, transparency and trust issues, workload readiness and internal non-IT-related organizational issues.”
Other findings in the report included IaaS accounting for the majority of total market revenue in 2012, with more than 50 percent of the total public cloud market share, and a 37 percent CAGR through 2016.
The PaaS layer represented 24 percent of the total public cloud revenue in 2012, and will see a projected CAGR of 41 percent between 2012 and 2016.
The infrastructure SaaS sector, which does not include enterprise SaaS revenue, represented 25 percent of total cloud revenue in 2012 and is expected to generate a 29 percent CAGR through 2016.
Publicly traded companies make up 23 percent of the cloud vendors tracked, and generate 78 percent of the total revenue. Meanwhile, the majority of vendors are still below the $5 million revenue mark, and vendors that constitute the cloud ‘midmarket’ (between $5 million and $50 million in revenue) accounted for 25 percent of total revenue in 2012.
Only a dozen vendors generated more than $75 million each in revenue in 2012, and 83 percent of all services provider generated $15 million or less each in 2012 revenue.