Nevada-based Synergy Research Group says that across six major markets of cloud computing, the industry reached revenues of $110 billion.
Synergy predicts that the cloud market is growing at 28% on average, which are some of the most bullish predictions in the industry.
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Public cloud is the growth leader, chugging along at a 51% growth clip. Private and hybrid cloud computing is the second fastest growing market, followed by SaaS and public cloud hardware sales. The Unified Communications as a Service (UCaaS) and private cloud hardware markets round out the market.
Synergy estimates that on-premises infrastructure and software still outpaces spending on cloud services, but the gap is narrowing rapidly.
Cloud-based infrastructure and software sales reached $60 billion, with half of that being spent on private cloud, Synergy says. Cloud service providers accounted for $20 billion of that figure to build out their offerings. SaaS spending reached $27 billion last year.
The major benefactors of this growth include Cisco and Hewlett Packard Enterprise for infrastructure hardware sales; Amazon Web Services and Microsoft on the infrastructure side; and Salesforce on the SaaS side. Amazon Web Services, considered to be the largest public IaaS vendor, has annualized revenues approaching $8 billion. Salesforce.com, the largest SaaS vendor has just over $5 billion.
“In many ways 2015 was the year when cloud became mainstream,” Synergy Research Group’s founder and Chief Analyst Jeremy Duke. “Across a wide range of cloud applications and services we have seen that usage has now passed well beyond the early adopter phase and barriers to adoption continue to diminish.”