Cloud professional services market to reach $65B by 2020

Posted by Mike Vizard on May 17, 2016 9:34:27 AM

cloud_computing_forecast.jpgThanks to the rise of cloud computing in all its forms, Technology Business Research Inc. (TBR) is now forecasting that the size of the cloud professional services market will grow to $65 billion by 2020.

At the moment, Gartner predicts that the public cloud computing market will be worth $204 billion by the end of this year alone. TBR, meanwhile, says a smaller private cloud hosting market will grow to $43 billion by 2020. But perhaps most interesting of all to IT services providers is the TBR suggestion that the size of the hybrid cloud computing market has doubled since 2013.

Admittedly, hybrid cloud computing adoption has lagged behind other forms of cloud computing. For many IT organizations, the complexity of managing a true hybrid cloud computing environment is still too great. But with an on-premise IT market that is still measured in the trillions of dollars, it’s only a matter of time before cloud computing by definition becomes hybrid.

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In addition, IT services providers should take note of the rise of hyperconverged infrastructure platforms that unify server, storage, and networking in a way that makes it simpler to stand up a private cloud. As the platforms become more widely deployed, it is expected that IT organizations that are sensitive to security and regulatory concerns will favor this approach to building, managing, and deploying their own private clouds.

Growing demand for IT services

Whatever the approach is taken, though, there will be more workloads than ever running in more places. The end result will be increased demand for help integrating those application workloads as well as for managed service expertise to run them as internal IT organizations continue to outsource lower level tasks in favor of concentrating on strategic digital business initiatives.

The only two caveats to this growing need for IT services expertise will be advances in IT automation and in application integration technologies delivered via integrated platform-as-a-service (iPaaS). The latter are cloud services that promise to make it simpler for end users to integrate disparate applications without any intervention from an internal or external IT services provider. But even allowing for those advances, complex cloud application integration projects spanning multiple business processes and partners are still expected to increase demand for managed services.

Automation and transformation

It's less clear to what degree cloud computing deployments can actually be automated, though. While IT services providers tend to benefit most from IT automation because it lowers their total cost of operations, there may come a day when IT automation turns provisioning and deploying cloud services into a set of on-demand resources that can be easily managed by the average internal IT administrator.

Regardless of the ultimate outcome, there is more transformation occurring across IT than at any other time in its august history. While that certainly portends challenges ahead for IT services providers, the potential rewards for participating in that transformation far outweigh any of the risks.

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Photo Credit: Christian Schnettelker via Flickr.com. Used under CC 2.0 License

Topics: IT Services Trends

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