Security News > 2023 > August > IaaS networking services revenue to hit $19.4 billion in 2023
The importance of networking to and within cloud environments has grown significantly for enterprise customers as more and more applications, workloads, and data are moved to the cloud, according to IDC. IDC estimates that worldwide revenue for public cloud-based infrastructure as a service networking services will reach $19.4 billion in 2023.
"IaaS network services play a critical role in helping organizations build modern digital IT and business capabilities that have all the cloud characteristics of agility, flexibility, resilience, elasticity, and scalability," said Taranvir Singh, research manager, Cloud Networking Services, IDC. IDC defines IaaS networking as public cloud-based IaaS network services in which all the network infrastructure and services are elastic and on demand.
The five major segments of the IaaS networking market included in IDC's research are direct cloud connects/interconnects, cloud WAN, ADCaaS, IaaS service mesh, and cloud VPNs. The largest segment of the IaaS networking market is cloud connects/interconnects, which accounts for more than half of all revenue and is forecast to expand at a 21.1% CAGR. The second-largest technology segment, cloud WAN, is also forecast to be the fastest-growing category with a five-year CAGR of 112.3%. IaaS service meshes will see strong growth as well, with a CAGR of 68.2% while ADCaaS and cloud VPNs will experience more modest growth with CAGRs of 17.5% and 11.8% respectively.
"Cloud connects/interconnects are foundational to every cloud strategy as these make it possible for enterprises to quickly and securely connect their on-premises and edge environments to IaaS providers. The rise of multicloud and SaaS applications that meet the demands of the modern distributed workforce in enterprises is the driver of rapid growth in cloud WANs and other IaaS network services," said Rohit Mehra, group VP, Network and Telecommunications at IDC. IaaS cloud providers have recognized the importance of networking to their customers and have invested heavily to expand their dedicated IaaS networking solutions, which have become integral, complementary assets to their core IaaS compute and storage offerings.
In 2022, the top 5 vendors in the public cloud IaaS market were also the leaders in the IaaS cloud networking market, making use of their existing technical expertise and infrastructure capabilities.
The top 5 IaaS cloud networking services providers accounted for 85.7% of the total market spend in 2022 with AWS capturing more than half the total.
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https://www.helpnetsecurity.com/2023/08/04/iaas-networking-services-revenue/