Cloud spending hits new heights, tops $110bn


Synergy Research Group has dedicated 2015 as “The Year of the Cloud”, saying it marked the year that cloud services and infrastructure officially become mainstream in the enterprise.

Last week, Synergy posted the results of a study measuring growth rates in six different cloud segments, including the all-important Software-as-Service (SaaS) and Infrastructure-as-a-Service (IaaS) components. The research firm found that total cloud operator and vendor revenues hit $110 billion in the last year, a 28 percent annual growth rate for all of the cloud service and infrastructure market segments.

The most rapid growth was seen in the IaaS and Platform-as-a-Service (PaaS) segment at 51 percent, followed by hybrid and private cloud infrastructure services with 45 percent growth.

Although enterprises continue to spend more on infrastructure hardware and software, spending on cloud services is rapidly catching up, and could well surpass the latter two in the coming years, Synergy said. It noted that companies spent around $60 billion on infrastructure hardware and software during the last year, with over $30 billion of that being spent on private clouds.

Spending on the public cloud accounted for less of the overall growth, though spend has increased much more rapidly in this segment. In total, infrastructure investments by cloud service providers reaped $20 billion in revenues from the array of cloud infrastructure services they offer, while Software as a Service and other Internet services reaped an extra $27 billion.

Synergy Group

“Cloud technologies are now generating massive revenues and high growth rates that will continue long into the future, making this an exciting time for IT vendors and service providers that focus on cloud,” concluded Synergy Research Group’s Chief Analyst John Dinsdale.

Synergy’s report doesn’t really tell us much new, as it’s fairly common knowledge already that cloud spending is on the rise. Nonetheless, the study is helpful because it gives us some solid numbers to support what’s already known.

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