The worldwide public Cloud services market is expected to grow 17.2 percent to total $208.6 billion this year -- up from $178 billion in 2015, market research firm Gartner said on Thursday.
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The highest growth will come from Cloud system infrastructure services which is projected to grow 42.8 percent this year, the report said.
"Growth of public Cloud is supported by the fact that organizations are saving 14 percent of their budgets as an outcome of public Cloud adoption," Sid Nag, Research Director, Gartner, said in a statement.
Cloud application services is also expected to grow 21.7 percent to reach $38.9 billion this year.
IT modernization is currently the top driver of public Cloud adoption, followed by cost savings, innovation, agility and other benefits, the report added.