Public cloud is big, and it is growing fast. Nobody will deny that.
But Synergy Research Group’s latest estimate that IT corporations earned $20 billion (€17.7 billion) in revenue thanks to the public cloud seems a little high. Is this fuzzy math or is the cloud really this big? It is hard to say for sure. Check out the research here.
Synergy says the largest segment of the public cloud market is made up of hardware and software sales to build public clouds, which created $7 billion (€6.2 billion) in revenue last quarter and is growing at 26% year-over-year.
That seems credible. After all, every day AWS adds as much new server capacity as Amazon used to support its $7 billion business back in 2004. A lot of money is being spent to build up public clouds.
Synergy says that Infrastructure as a Service (IaaS) vendors collected $5.5 billion (€4.8 billion) in revenues last quarter, and it is the fastest growing of the cloud revenue streams at 49% YoY growth.
This figure may be a little high. Amazon Web Services is the largest of the IaaS vendors, and it had about $1.8 billion (€1.6 billion) in sales last quarter. That would mean that all the other vendors in this market had to make $3.7 billion (€3.3 billion) last quarter, which seems unlikely.
Co-location, or the renting of data centre space to host public cloud services, is a $2.8 billion (€2.5 billion) quarterly market, according to Synergy, growing 9% YoY. Again, this seems a little high.
By comparison, research firm IDC predicts that the entire worldwide cloud market will be $70 billion (€62 billion) this year.
Overall, Synergy’s point is that the cloud market is substantial, and it’s growing, which is fair enough. Their figures are likely in the ballpark, but the specifics are arguable.
Brandon Butler, IDG News Service
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