Global Cloud compute services market is expected to grow from $23.3 billion in 2016 to reach $68.4 billion in 2020 and 90 percent of organizations will adopt hybrid infrastructure management capabilities, market research firm Gartner predicted on Wednesday. Traditional data centre outsourcing (DCO) spending is expected to decline from $55.1 billion in 2016 to $45.2 billion in 2020. Also Read - WeTransfer partially banned in IndiaAlso Read - Global smartphones sales to decline by 3.2% in 2019: Gartner
“As the demand for agility and flexibility grows, organizations will shift toward more industrialized, less-tailored options,” said D.D. Mishra, Research Director at Gartner, in a statement.
Spending on co-location and hosting is also expected to increase from $53.9 billion in 2016 to $74.5 billion in 2020. In addition, infrastructure utility services (IUS) will grow from $21.3 billion in 2016 to $37 billion in 2020 and storage as a service will increase from $1.7 billion in 2016 to $2.7 billion in 2020, the findings showed. ALSO READ: Public Cloud services market to grow 18% to reach $246.8 billion in 2017: Gartner
In 2016, DCO and IUS together represented 49 percent of the $154 billion total data centre services market worldwide, consisting of DCO/IUS, hosting and Cloud infrastructure as a service (IaaS). This is expected to tilt further toward Cloud IaaS and hosting, and by 2020, DCO/IUS will be approximately 35 per cent of the expected $228 billion worldwide data centre services market.
“By 2019, 90 percent of native Cloud IaaS providers will be forced out of this market by the Amazon Web Services (AWS)-Microsoft duopoly,” Gartner said. ALSO READ: Public Cloud market in India to reach $1.8 billion by 2017: Gartner