The public cloud services market is expected to maintain its pattern of growth, fueled by the demand for Desktop-as-a-Service (DaaS) and Software-as-a-Service (SaaS) solutions.
This is according to a new report from market analyst Gartner, which predicts the market will grow to $257.9 billion this year - a 6.3 percent increase year-on-year.
The most significant growth is expected from the DaaS segment, with Gartner predicting a rise of 95.4 percent to $1.2 billion.
“When the COVID-19 pandemic hit, there were a few initial hiccups but cloud ultimately delivered exactly what it was supposed to,” said Sid Nag, Research Vice President at Gartner.
“It responded to increased demand and catered to customers’ preference of elastic, pay-as-you-go consumption models.”
Despite strong growth in DaaS, SaaS remains the largest market segment, expected to grow to $104.7 billion this year.
This growth is reportedly fueled by businesses looking to move away from on-premises licensed software. These firms, according to Gartner, were partially forced into SaaS by Covid-19 and the need to move into a home-working environment.
In terms of size, SaaS is followed by cloud system infrastructure services (IaaS), which Gartner expects to grow 13.4 percent, hitting $50.4 billion this year. Analysts believe that spending in this sector will rise even faster once Covid-19 had passed and businesses being spending more freely.
“The use of public cloud services offers CIOs two distinct advantages during the COVID-19 pandemic: cost scale with use and deferred spending,” said Nag.
“CIOs can invest significantly less cash upfront by utilizing cloud technology rather than scaling up on-premises data center capacity or acquiring traditional licensed software.”
“Any debate around the utility of public cloud has been put aside since the onset of COVID-19. For the remainder of 2020, organizations that expand remote work functionality will prioritize collaboration software, mobile device management, distance learning educational solutions and security, as well as the infrastructure to scale to support increased capacity.”