Global Cloud Computing Service Market to grow at 16.5% in 2016

Global Cloud Computing Service Market to grow at 16.5% in 2016 and it is projected to touch the US $127 billion by 2017. According to Gartner, Inc. the growth in this arena would be driven by Infrastructure as a Service (IaaS), one of the verticals of cloud computing services, which is likely to grow by 33.4 percent. The report suggested that cloud advertising to cross the US $90.3 billion, with a pace of 13.6 percent in 2016.

The search engine giant, Google forayed into cloud computing last year.  Over Google’s entry into this arena, Urs Hölzle, Senior Vice President for Technical Infrastructure at Google said, “My goal is for us to talk about Google as a cloud company in 2020”. For long it has been perceived that the search giant was not focusing on its cloud business, but not the company has a vision for its cloud business.

Google is still lagging behind in cloud infrastructure services as per the market share. Amazon Web Services (AWS) by Amazon is at the top with 31 percent market share in 2015, whereas, Microsoft and IBM hold 9 percent and 7 percent, respectively. While, Google, and Salesforce hold 4 percent market share.

However, Google Cloud Platform (GCP) by Google has registered a phenomenal growth in the last quarter of 2015 giving a tough challenge too big market players. Considering the potential growth in cloud computing, Google plans to add around 12 GCP regions to its network by 2017.

Companies, enterprises, software vendors are adopting the digital business strategy. Major software companies entered into the cloud computing services, due to the cost-effective and pay-for-use system.  IT companies, enterprises can slash their cost by around 35 percent by adopting cloud computing services, a report suggested.