Changes in the way businesses manage their infrastructure are driving growth opportunities, finds Frost & Sullivan

Santa Clara, Calif. – May 13, 2019 — The strong market demand for cloud Infrastructure-as-a-Service (IaaS) is expected to drive the $45.6 billion market toward $150.7 billion by 2023, at a compound annual growth rate of 27%. Enterprises are using the cloud for strategic benefits such as supporting digital transformation rather than for tactical ones, such as reducing IT infrastructure costs and hardware/software maintenance burden. This has changed the way enterprises choose and manage their infrastructure, and led them to deploy applications across multiple infrastructures, from on-premises to cloud (multi- and single-tenant), resulting in higher demand for IaaS.

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“As the mix of deployment models and best-of-breed cloud IaaS vendors becomes increasingly diverse, single-tenant IaaS will gain revenue share over multi-tenant services,” said Maiara Munhoz, Cloud Computing Senior Industry Analyst. “Meanwhile, the emergence of cloud brokerage and cloud management platforms is boosting the trend of hybrid and multi-cloud, making managed cloud services providers key in supporting enterprises. Managed service providers (MSPs) will support companies with workload assessment and placement, workload migration, and hybrid cloud integration.”

Frost & Sullivan’s recent analysis, Global Cloud Infrastructure as a Service Market Outlook, Forecast to 2023, analyzes the current global IaaS market and forecasts revenue growth from 2019 to 2023. The analysis is segmented by multi-tenant and single-tenant cloud services, geographic regions (North America, Europe and the Middle East, Asia-Pacific, and Latin America) and by global market share.

“The competitive landscape of the global cloud IaaS market is concentrated between the top two providers, AWS and Microsoft, which now control 74% of the global market share,” noted Munhoz. “North America continues to be the strongest IaaS market globally, followed by EMEA, but they are expected to gradually make room for APAC and LATAM. Some countries in APAC, like Japan and Australia, are more mature, while India, China, Singapore, South Korea, and Hong Kong are fast-growing markets.”

Going forward, it will be essential for cloud IaaS vendors to invest in integrated services, on-premises and in the cloud. For further growth opportunities, vendors need to:

  • Offer more advanced services in the cloud—such as containers and serverless architecture—and tools for enterprises to manage, analyze, and act on their data.
  • Support hybrid deployment models, as enterprises realize that a single cloud or deployment model will not address all their application requirements.
  • Partner with MSPs and deliver training, programs and features to support them.
  • Invest in educating clients on the technology, as enterprises still need guidance on how to use the cloud to meet goals for innovation and digital transformation.

Global Cloud Infrastructure as a Service Market Outlook, Forecast to 2023 is part of Frost & Sullivan’s global Information Technology Growth Partnership Service program.

About Frost & Sullivan

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Global Cloud Infrastructure as a Service Market Outlook, Forecast to 2023



Francesca Valente

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About Francesca Valente

Francesca ValenteFrancesca currently serves as Global Corporate Communications Director at Frost & Sullivan, leading the coordination and alignment of communications strategy and activities in all regions. She speaks italian, spanish, english and french fluently. Her previous experiences include positions in the automotive, cosmetics and fashion industry for companies such as Plastic Omnium, L'Oréal, DIM. Francesca holds a BA in International Business from ESCE (Paris, France), as well as a Master's degree in International Marketing & Communications from the Polimoda International Institute of Design & Marketing (Florence, Italy).

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