Public cloud revenue growth has vastly exceeded expectations for 2017, with Amazon and Microsoft leading the way.
Global tech research firm, Gartner, has forecast worldwide public cloud revenue to hit $260 billion this year, with SaaS and IaaS driving growth in 2017.
It is expected that SaaS will experience 21 per cent growth in 2017, pushing it up to a robust $58.6 billion in revenue.
While the growth driven by SaaS is strong, its 2017 performance is set to be exceeded by major revenue growth generated by infrastructure as a service (IaaS), expected to haul in growth of 36.6 per cent, amounting to $34.7 billion.
Sid Nag, research director at Gartner, said: “Final data for 2016 shows that software as service (SaaS) revenue was far greater in 2016 than expected, reaching $48.2 billion… SaaS is also growing faster in 2017 than previously forecast, leading to a significant uplift in the entire public cloud revenue forecast.”
A driving factor behind the revenue growth of SaaS is in its ability to out-perform traditional software by being specifically engineered to provide a more formidable business solution.