09 Aug
2016

IaaS Adoption is Expected to Surge by 2020

In the last couple of years, Infrastructure-as-a-Service (IaaS) providers have been putting forward a compelling argument as to why businesses should ditch their on-premise hardware and instead purchase server capacity that provides flexible, virtual and scalable IT infrastructure. Their message seems to have hit home, and industry projections point to a surge in IaaS adoption by 2020.

A July 2016 report from global research giant IDC boldly predicts that public cloud IaaS revenue will more than triple, moving from $12.6 billion in 2015 to $43.6 billion in 2020. This would represent a compound annual growth rate (CAGR) of just over 28 percent during the forecast period.

Many organizations are transitioning to full cloud services by starting with a hybrid cloud. IDC reports that 80 percent of IT organizations will be committed to hybrid architecture by 2018. The cloud market is dominated by 10 services that provide over 56 percent of global IaaS services, with Amazon Web Services (AWS) as the largest. The North American region is the most developed in terms of IaaS adoption, but the rise of cloud services like OpenStack are driving the growth of regional public cloud service providers, particularly in the Asian Pacific region. One of the most sophisticated and powerful providers of IaaS is SoftLayer from IBM. With data centers in the U.S., Asia and Europe integrated via one platform, SoftLayer is another great example of a service that is perfect for organizations looking to migrate to the cloud.

So why is IaaS surging? Cloud specialist at Datapipe Chris Bateman claims that it makes sense for IaaS to be increasing more quickly than other cloud applications. He explains that IaaS is the most basic level of cloud computing, and customers can find software and hardware that powers the rest of their cloud infrastructure, such as storage,  processing power and network resources. As the baseline for cloud computing, Platform-as-a-Service (PaaS) and Software-as-a-service (SaaS) applications can be added on top of IaaS. 

As the move to the cloud gathers pace and becomes the new norm, managed service providers that make cloud adoption simple and safe for consumers are likely to experience unprecedented growth.

Related Posts: