Skip to main content

Cloud IaaS Revenue will Reach $150.7 Billion in 2023

Demand for cloud computing Infrastructure-as-a-Service (IaaS) is expected to drive the current $45.6 billion market toward $150.7 billion by 2023 -- that's a compound annual growth rate of 27 percent, according to the latest worldwide market study by Frost & Sullivan.

Enterprises are using cloud services for strategic benefits such as supporting digital transformation efforts rather than for tactical ones, like reducing IT infrastructure costs and the hardware or software maintenance burden.

This market shift has changed the way enterprises choose and manage their IT infrastructure, and led them to deploy applications across multiple infrastructures, from on-premises private cloud to public cloud (multi- and single-tenant), resulting in higher demand for IaaS offerings.

Hybrid Multi-Cloud Market Development

"As the mix of deployment models and best-of-breed cloud IaaS vendors becomes increasingly diverse, single-tenant IaaS will gain revenue share over multi-tenant services," said Maiara Munhoz, senior industry analyst at Frost & Sullivan.

Meanwhile, the emergence of cloud brokerage and cloud management platforms is boosting the trend of hybrid and multi-cloud deployment strategies, making managed cloud services providers key in supporting enterprises and their CIO or CTO requirements.

Frost & Sullivan analysts believe that managed service providers (MSPs) will support their customers with workload assessment and placement, workload migration, and hybrid cloud integration.

The North America region continues to be the most mature cloud IaaS market globally, followed by EMEA, but they are expected to gradually make room for the APAC and LATAM regions.

Some countries in APAC, such as Japan and Australia, are more mature, while India, China, Singapore, South Korea, and Hong Kong are fast-growing markets.

Outlook for Cloud IaaS Applications Growth

Going forward, it will be essential for vendors of cloud computing IaaS to invest in integrated services, on-premises and in the public cloud. For further growth opportunities, vendors should:

  • Offer more advanced services in the cloud -- such as containers and serverless architecture -- and tools for enterprises to manage, analyze, and act on their data.
  • Support hybrid deployment models, as enterprises realize that a single cloud or deployment model will not address all their application requirements.
  • Partner with MSPs to deliver training, programs and features to support them.
  • Invest in educating clients on cloud computing technology, as enterprises still need guidance on how to use cloud services to meet goals for business innovation and digital transformation.

Popular posts from this blog

AI-Driven Data Center Liquid Cooling Demand

The rapid evolution of artificial intelligence (AI) and hyperscale cloud computing is fundamentally reshaping data center infrastructure, and liquid cooling is emerging as an indispensable solution. As traditional air-cooled systems reach their physical limits, the IT industry is under pressure to adopt more efficient thermal management strategies to meet growing demands, while complying with stringent environmental regulations. Liquid Cooling Market Development The latest ABI Research analysis reveals momentum in liquid cooling adoption. Installations are forecast to quadruple between 2023 and 2030. The market will reach $3.7 billion in value by the decade's end, with a CAGR of 22 percent. The urgency behind these numbers becomes clear when examining energy metrics: liquid cooling systems demonstrate 40 percent greater energy efficiency when compared to conventional air-cooling architectures, while simultaneously enabling ~300-500 percent increases in computational density per rac...