The Channel logo


By | Kat Hall 17th June 2015 08:29

Brace yourselves: Public cloud is coming. When? Er... soon, possibly

Will still be a fraction of overall spend by 2018

Spending on Platform-as-a-Service and Infrastructure-as-as-Service is rapidly increasing, but will still add up to less than 10 per cent of the overall infrastructure services market by 2018, research from analyst firm TechMarketView has concluded.

Widespread uptake of the public cloud is not happening anytime soon, despite strong growth from the likes of Amazon Web Services, it added.

However, this is up from IaaS/PaaS accounting for just three per cent of the total infrastructure services market in 2014, the report, titled Public cloud providers: Unlocking enterprise spend, found.

Kate Hanaghan, analyst at TechMarketView, said a large number of enterprises view migration to cloud-delivered services as "too complex and costly" to be worthwhile right now.

She said there is an appetite for IaaS and PaaS, but "CIOs can’t simply ‘turn off the tap’ and shift the entire IT infrastructure into the cloud."

In April, Amazon revealed AWS' results for the first time. Full-year sales were up 49 per cent to $4.6bn (£2.9bn), with first quarter sales also up 49 per cent to $1.5bn (£1bn).

Hanaghan warned against interpreting the results as a sign of the immediate demise of established providers.

"In terms of size, AWS is still a relatively small player versus the industry heavyweights such as HP, IBM and Fujitsu who between them generate infrastructure services revenue in the UK of almost £5bn a year," she said.

She concluded: "There is no denying the impact public cloud has had on the market, but we do encourage caution regarding whether these ‘new world’ players are about to become the dominant force in enterprise." ®

comment icon Read 3 comments on this article or post a comment alert Send corrections


Frank Jennings

What do you do? Use manual typwriters or live in a Scottish croft? Our man advises
A rusty petrol pump at an abandoned gas station. Pic by Silvia B. Jakiello via shutterstock

Trevor Pott

Among other things, Active Directory needs an overhaul
Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella


League of gentlemen poster - Tubbs and Edward at the local shop. Copyright BBC
One reselling man tells his tale of woe