Report: IaaS, PaaS make up 12 percent of infrastructure market

Although Software as a Service often takes the majority of the credit for the emerging cloud market, Platform and Infrastructure as a Service are also gaining momentum and encouraging more decision-makers to adopt the cloud. IaaS and PaaS are quickly becoming more critical components in tomorrow's data center, especially as organizations around the world continue to embrace hosted solutions.

A recent study by Synergy Research Group highlighted the growing IaaS and PaaS market, noting that the offerings generated more than $2.7 billion in revenue during the first half of 2012, up 65 percent from the first half of 2011. Furthermore, hosted services now account for approximately 12 percent of the total infrastructure market, up from only 6 percent in 2010.

"We are in the early days of a profound shift in the data center market towards cloud infrastructure services, which presents extremely exciting growth opportunities for emerging cloud providers and traditional service providers the world over," said Jeremy Duke, chief analyst and founder of Synergy Research Group.

A separate report by Gartner also noted that the IaaS market is forecast to be the fastest-growing segment of the cloud market, as analysts said it will generate approximately $6.2 billion in revenue in 2012, up from $4.3 billion in 2011. By 2016, the market for IaaS will be about the same size as that for SaaS.

This is largely because organizations of all sizes are moving beyond their initial testing stages of IaaS and deploying full-scale programs. In doing so, decision-makers and IT departments are becoming more familiar and comfortable with cloud computing in general, encouraging a wider use of hosted services.

"The total public cloud services market size in 2011 was $91.4 billion and it will grow to $206.6 billion in 2016," said Ed Anderson, research director at Gartner. "As the market grows, IaaS will become a larger part of the overall market, while the market share of cloud management and security services will grow as well."

As the cloud market expands, driven by the need for a highly flexible infrastructure capable of scaling on demand, businesses will inevitably become more efficient and turn the private sector into an increasingly competitive landscape. This will further fuel the demand for cloud offerings.

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