(The Hosting News) – The cloud market will near $20 billion in worth as the industry approaches 2016, 451 Research service Market Monitor found recently.
The projection accounts for the idea that revenue from the cloud market will increase at a 36% compound annual growth rate.
While admitting that cloud was on the “upswing” and that demand for public cloud services remained strong, 451 Research Analyst Yulitza Peraza warned of some challenges the market faces. “However, public cloud adoption continues to face hurdles including security concerns, transparency and trust issues, workload readiness and internal non-IT-related organizational issues,” Peraza explained.
Market Monitor also found that IaaS services covered most of total market revenue during the course of last year while PaaS accounted for 24%. Meanwhile, SaaS (not including enterprise SaaS revenue) accounted for 25%.
Regarding cloud venders, just ten companies actually hauled in more than $75 million during last year. Generating 78% of cloud revenue were publicly trades companies; that’s despite that they only make up 23% of the cloud vendors the report tracked.
451 Research focuses its studies on enterprise IT. Market Monitor regularly releases five year forecasts. To access the report, go here (451Research.com).