The new study came from Market Monitor, a 451 Research service, and indicated that takings within the sector will increase at around a 36% compound annual growth rate.
The majority of total revenue for this year came from Infrastructure-as-a-service (IaaS), which represented over half of the market and is expected to expand substantially, with an individual increase of around 41% of the share. Software-as-a-service, meanwhile, currently accounts for 25% of the market revenue, and is expected to grow by around 29% by 2016.
Yulitza Peraza, analyst at 451 and co-author of the new report, said:
“Cloud computing is on the upswing and demand for public cloud services remains strong.
“However, public cloud adoption continues to face hurdles including security concerns, transparency and trust issues, workload readiness and internal non-IT-related organisational issues.”
This year, publicly traded companies represented 23% of the cloud vendors that were tracked, and generated around 78% of the total revenue within the sector. Research also indicates that the majority of cloud vendors are currently below the $5 million revenue threshold as of the time that the report was published. Twelve vendors generated over $75 million each in revenue during the last year.
Greg Zwakman, Research Director at 451 indicated that within the cloud sector, several of the firms that are currently considered “midmarket” are thought to be “titans” within the ICT sector as a whole, indicating that even established firms will need to work hard to succeed.