Demand for integrated IaaS and PaaS is driving cloud infrastructure adoption.
Domestic Public Cloud Service Market Continues Strong SaaS Trend
Domestic SaaS End User Spending Exceeds 1 Trillion Won in 2019
On the 13th, Gartner announced its forecast for the global public cloud service market size in 2019.

Gartner predicted that the market size would reach $206.2 billion in 2019, an increase of 17.3% from $175.8 billion in 2018. It also forecasted a 21% growth in 2018 from $145.3 billion in the previous year.

The fastest-growing sector in the public cloud service market is cloud system infrastructure services (IaaS), which is projected to reach $39.5 billion in 2019, a 27.6% increase from $31 billion in 2018.

In 2022, it was expected that 90% of organizations purchasing public cloud IaaS would purchase it from integrated IaaS and Platform as a Service (PaaS) providers and use both of those providers' IaaS and PaaS capabilities.

"Demand for integrated IaaS and PaaS products is driving cloud infrastructure adoption," said Sid Nag, Research Director at Gartner. "As enterprises are expected to demand broader and deeper products for hybrid environments, cloud providers dedicated to IaaS will likely need to target niche markets." "The growth of the IaaS market is already accelerating due to the adoption of multi-cloud and hybrid cloud driven by strategies such as digital transformation projects," he said.
Software as a Service (SaaS) remains the largest segment in the cloud market, and related revenue is projected to reach $85.1 billion in 2019, growing by 17.8%.

The strength of the SaaS sector is expected to continue in the domestic public cloud service market as well. Domestic SaaS end-user spending is projected to reach approximately 840.4 billion won in 2018, accounting for nearly half of total cloud service spending, and is expected to surpass 1 trillion won in 2019.
Craig Roth, Vice President of Research at Gartner, stated, "The increasing adoption of SaaS applications and other cloud services is impacting the management, distribution, and use of enterprise content," adding, "Companies are continuously transitioning their content environments to SaaS." According to Gartner, the Enterprise Content Management (ECM) market will evolve into specialized cloud-based content solutions and solution service applications in 2019,” they said.

Gartner projected that revenue in the Business Process as a Service (BPaaS) sector would reach $50.3 billion in 2019, showcasing a 7.9% revenue growth rate. In particular, the company stated that buyers in this sector not only expect deeper expertise, technology, and global deployment capabilities from vendors, but also anticipate service portfolios that connect existing products and support new automated digital and cloud service delivery paradigms.

Gartner's customers can find more details in " Forecast Analysis: Global Public Cloud Services, 2Q18 Update " and " Forecast: 2016-2022 Global Public Cloud Services, 2Q18 Update ".