Spending on cloud computing soars during 2016

Services market outlays overtake cloud infrastructure expenditures, says Jeremy Duke.


The cloud computing market continues to grow at a robust pace, according to a new report from Synergy Research Group. Across six key cloud services and infrastructure market segments, operator and vendor revenues for the four quarters ended September 2016 reached $148 billion, up 25 percent on an annualized basis.



Infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) offerings had the highest growth rate (53 percent), followed by hosted private cloud infrastructure services (35 percent) and enterprise software-as-a-service (SaaS), at 34 percent.

Also See: Colorado research initiative moves to the cloud

Last year was notable because spending on cloud services overtook spending on cloud infrastructure hardware and software, Synergy said. In aggregate, cloud service markets are now growing three times more quickly than cloud infrastructure hardware and software.

Companies that featured the most prominently among the 2016 market segment leaders were Amazon/AWS, Microsoft, HPE, Cisco, IBM, Salesforce and Dell EMC the report said.

“We tagged 2015 as the year when cloud became mainstream, and I’d say that 2016 is the year that cloud started to dominate many IT market segments,” said Synergy Research Group founder and chief analyst Jeremy Duke.

Also See: The top 14 data integration companies

“Major barriers to cloud adoption are now almost a thing of the past, especially on the public cloud side,” Duke said. “Cloud technologies are now generating massive revenues for technology vendors and cloud service providers, and yet there are still many years of strong growth ahead.”

More for you

Loading data for hdm_tax_topic #better-outcomes...