The worldwide public cloud services market revenue is projected to grow 18.5 percent in 2017 to total USD 260.2 billion, up from USD 219.6 billion in 2016, according to Gartner, Inc. SaaS revenue is expected to grow 21 percent in 2017 to reach USD 58.6 billion. The acceleration in SaaS adoption can be explained by providers delivering nearly all application functional extensions and add-ons as a service.
The highest revenue growth will come from cloud system infrastructure services (infrastructure as a service [IaaS]), which is projected to grow 36.6 percent in 2017 to reach USD 34.7 billion.
Although public cloud revenue is growing more strongly than initially forecast, Gartner still expects growth to even out from 2018 onwards. This stabilization reflects the increasingly mainstream status and maturity that public cloud services will gain within a wider IT spending mix.