What awaits the IaaS market: briefly on the trends

    Yesterday, we prepared for you a digest of events on IT infrastructure and cloud technologies that will be held at Russian sites this year.

    Today - we suggest you take a look at the trends of the IaaS and PaaS markets. According to Gartner forecasts , their valuation in 2018 will amount to $ 186.4 billion (compared with 153.5 billion in 2017). / photo by Edgardo W. Olivera CC




    IaaS is growing fastest


    Analysts at Gartner believe IaaS is the fastest growing market segment. According to analysts, in 2018 the value of the IaaS market will grow by 35.9%: from $ 30 to $ 40.8 billion. By 2021, this market will be valued at $ 83.5 billion.

    Gartner estimates that by 2021, the 10 largest cloud providers will account for 70% of the IaaS market (compared to 50% in 2016). And this is not surprising, given how much companies spend on expanding and developing their virtual infrastructure . For example, in March last year, Google announced that their spending on expanding their data center network over the past three years amounted to $ 30 billion.

    For example, earlier this year, the company owning Snapchat signed an agreement with Google for five years. Under its terms, Snap will spend $ 400 million annually on the IT giant’s cloud services. Snapchat needs a virtual infrastructure for storing and managing data, analytic work, security and other tasks.
    In the domestic market, the IaaS segment is also a leader in terms of revenue growth. According to the end of 2016, the revenues of the 10 largest providers in Russia increased by 76% (from 3.8 billion rubles in 2015 to 6.7 billion in 2016). According to a Cnews study, IT-GRAD took first place in revenue from the provision of IaaS services - more than 1 billion rubles.
    Another trend is the active migration of corporate IT infrastructures to the cloud. For example, the manufacturing company Jotun has already deployed the entire office infrastructure in the IT-GRAD cloud: The provider’s cloud now runs business-critical services such as SQL, file server, and Domino. And Aeroflot intends to transfer up to 90% of its IT infrastructure to the cloud by 2020.

    Most companies are beginning to fully transition to the clouds, because, according to them, the cloud environment is easily scalable, managed and helps save on IT infrastructure. According to experts, in the future the IaaS market will only grow. According to451 Research, in 2016, 6% of world companies in one form or another adapted IaaS technologies for themselves, but experts expect this indicator to double by 2018. At the same time, the total share of workloads in the cloud will be 60%.


    / photo Horia Varlan CC

    PaaS - the second segment by growth rate


    As forecast at Gartner, the market value of PaaS will reach $ 15 billion by the end of 2018 (compared to 12 billion in 2017). It is expected that by 2021 the market will be valued at $ 27 billion.

    At the same time, analysts call DBPaaS (database platform as a service) the fastest growing segment of the PaaS market. By 2021, the valuation of this segment will reach $ 10 billion. This is due to the fact that more and more hyperscale providers are adding DBPaaS to the list of services provided.

    Forbes writes that businesses are choosing PaaS because they are confident that in the near future it will become a secure and scalable application development platform. According toCEO of Coca-Cola Germany Ulrik Nehammer, PaaS simplifies communication between employees and increases their involvement in the internal processes of the company. To do this, the company placed in the cloud mobile and other business critical services.

    For example, Levi's uses PaaS for security reasons. The CASB and Identity Management services are responsible for this . Using these solutions allows Levi's to comply with internal information security policies and prevent data breaches. At the same time, Exelon PaaS is used to implement chat bots based on AI systems in order to solve customer problems faster.

    In general, Gartner analysts suggestthat after 2018, the development of the cloud market is stabilizing. The sharp jumps will stop - they will be replaced by steady growth, as is the case with other mature technologies.


    PS Some fresh material from the First Corporate IaaS Blog:


    PPS A couple of other materials from the blog on Habré:


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