Cloud service providers are looking to grow their market share by offering specialized compute solutions, according to a new report.
Integration of data-intensive workloads, such as artificial intelligence and machine learning, for enterprises will help increase the off-premise cloud service market to $374 billion by 2022 with a five-year compound annual growth (CAGR) rate of 17.7%, according to a report by IHS Markit.
Cloud service providers (CSPs) are also adding value and seperating themselves from the competition, by offering their enterprise customers blockchain technology in platform-as-a-service solutions (PaaS). CSPs are also taking aim at introducing new services across growing verticals such as healthcare, engergy, financial services and translation monitoring.
“Amazon made a smart move when it integrated Alexa into Amazon Web Services business applications, and by launching several machine learning services, further expanding its breadth of intelligent solutions,” said Clifford Grossner, senior research director and advisor, cloud and data center research practice, IHS Markit, in a prepared statement. “Google and Cisco also upped their AI and ML game, targeting hybrid cloud deployments with a collaboration aimed at running these tasks, both on-premises and from Google Cloud.”
As for measuring the impact that telecom service providers have had on cloud service providers' bottom lines, Grossner said the revenues would be "pretty small at this point," and that their use of off-premises cloud services was in the early stages.
The cloud-as-a-service (CaaS) category is slated to increase by 56% this year, with a five-year CAGR of 29% while platform as a service will grow 55% with a five-year CAGR of 31% over the same time frames.
North America will continue to be the market leader through 2022 for off-cloud services by raking in 53% of the global off-premises cloud service revenue, according to the report.
Among the cloud providers, IBM continued to lead the market for software-as-a-service (SaaS) in 2017, with 18% of the revenue. Amazon led infrastructure-as-a-service (IaaS) with 41% of the revenue and Microsoft led PaaS, with 26% of the revenue.
Microsoft’s lead in CaaS continued, with 21% revenue; while Equinix led the physical facility market with 15%.