The global cloud computing service, as an emerging computing technology that enables both IT infrastructure and software to be delivered directly over the Internet has been in the significant growth over the recent years. The global cloud computing service market revenue is set to reach $209.9 billion in 2014, while the latest report shows that the global cloud services market is expected to grow to $555 billion worth in 2020, representing a CAGR of 17.6% from 2014 to 2020, according to Global Cloud Services Market Report by Allied Market Research.

The cloud computing service, which enables to save over 35% of the IT cost, has surged even during the recent economic slowdown. Since then the cloud computing service has become the best solution for cost effectiveness with minimum to zero investment and reduced management of IT resources. Although, the cost and functional benefits such as scaling ability and multi-tenancy still driving much of the cloud services market growth, evolution of much value-creating productive solutions has become the current growth function of the market.

The biggest growth in terms of segments has seen on healthcare segment which is expected to garner revenue of $1 billion in 2014. Other segments with strong growth include infrastructure as a service (IaaS), software as a service (SaaS), platform as a service (PaaS), business process as a service (BPaaS), cloud advertisement services, and cloud management & security services. Cloud advertising services is another fastest growing segment followed by BPaaS with about 47% and 28% market share respectively in 2013. The cloud management & security services are expected to have the highest growth rate at a CAGR of 28.4% during the forecast period.

When it comes to the geographic market segments, North America, as the earliest adopter of these services, will still be in the leading position market share throughout 2020. Although Asia Pacific only represents a small market for cloud computing service, it is expected to have the fastest growing pace of CAGR 23.5% during the forecast period. Economic benefits from cloud services acts as the key driving factors in developing countries of Asia Pacific.