Cloud compute services market to hit $68.4 bn in 2020

New Delhi, April 5 : Global Cloud compute services market is expected to grow from $23.3 billion in 2016 to reach $68.4 billion in 2020 and 90 per cent of organisations will adopt hybrid infrastructure management capabilities, market research firm Gartner predicted on Wednesday.

Traditional data centre outsourcing (DCO) spending is expected to decline from $55.1 billion in 2016 to $45.2 billion in 2020.

"As the demand for agility and flexibility grows, organisations will shift toward more industrialised, less-tailored options," said D.D. Mishra, Research Director at Gartner, in a statement.

Spending on co-location and hosting is also expected to increase from $53.9 billion in 2016 to $74.5 billion in 2020. 

In addition, infrastructure utility services (IUS) will grow from $21.3 billion in 2016 to $37 billion in 2020 and storage as a service will increase from $1.7 billion in 2016 to $2.7 billion in 2020, the findings showed. 

In 2016, DCO and IUS together represented 49 per cent of the $154 billion total data centre services market worldwide, consisting of DCO/IUS, hosting and Cloud infrastructure as a service (IaaS). 

This is expected to tilt further toward Cloud IaaS and hosting, and by 2020, DCO/IUS will be approximately 35 per cent of the expected $228 billion worldwide data centre services market.

"By 2019, 90 per cent of native Cloud IaaS providers will be forced out of this market by the Amazon Web Services (AWS)-Microsoft duopoly," Gartner said.