The figure of $204bn represents a 16.5 percent increase from $175bn in 2015, which Sid Nag, research director at Gartner, said underlined the huge demand for outsourced cloud services among firms of all types.
“The market for public cloud services is continuing to demonstrate high rates of growth across all markets, and Gartner expects this to continue through 2017,” he said.
“This strong growth continues to reflect a shift away from legacy IT Services to cloud-based services due to the increased trend of organisations pursuing a digital business strategy.”
Infrastructure-as-a-service (IaaS) offerings will account for the bulk of this growth, rising 38 percent to account for $22.4bn, and Nag noted that large enterprises increasingly use cloud-based IaaS for their needs.
Source: New feed