Global spending on cloud services surpasses $300 billion, report
Cloud Services have become an integral part of business operations for many large companies and in 2020 the industry earned an estimated revenue of over $300 billion globally.
According to data presented by TradingPlatforms.com, global public IT cloud services market revenue for 2020 was at $312.4B - a 34% Increase from 2019.
In 2016, global spending on public IT cloud services was just under $100B. In 2021 that figure has ballooned to a healthy $312.4B after experiencing a 34% increase from 2019's $233.4B revenue. In the 4 year period from 2016-2020 revenue from spending on cloud services grew at an impressive compound annual growth rate (CAGR) of 36.31%.
Of the three main types of cloud services, Software as a Service (SaaS) still accounts for the largest share of total revenue with a 63% share. In 2020 SaaS revenue amounted to $197.6B which is a 33% increase from 2019's $148.5. S From 2016-2020 SaaS revenue grew at a CAGR of 34.1%
Infrastructure as a Service (IaaS) held the second-largest share of the revenue accounting for 21.5% of total revenue. IaaS experienced the largest growth among the three main types of cloud services with a 37% increase in revenue from $49B in 2019 to $67.2B in 2020. From 2016-2020 IaaS had a staggering CAGR of almost 40%.
Platform as a Service (PaaS) revenue accounts for just 15% of total revenue and experienced a 32.6% increase from $35.9B in 2019 to $47.6B in 2020. PaaS experienced a CAGR of 42.42% from 2016-2020, the highest out of the three main types of cloud services despite experiencing the lowest YoY growth.
Rex Pascual, editor at Trading Platforms, commented: "The cloud services industry was already gathering strong momentum prior to the outbreak of the COVID-19 pandemic in 2020. Lockdowns across the world resulted in many businesses rapidly shifting to cloud-based services giving the industry its highest YoY growth to date. Expect the industry to sustain this growth as many more businesses see the value in the adaptability of cloud services even in a post-pandemic world."