Just how much is Cloud Computing growing?

Blog

Just how much is Cloud Computing growing?

Posted 02 March 2021

Put simply, Worldwide end-user spending on public cloud services is forecast to grow 18.4% in 2021 to total $304.9 billion, up from $257.5 billion in 2020, and the Cloud Computing industry is set to grow to $832.1 Billion by 2025, at a CAGR of 17.5%. 💰

But what does this really mean? 🤔

Digital business transformation has entered a more challenging and urgency-driven phase due to the COVID-19 pandemic. Global giants are providing customers with cost-effective and productive digital solutions as every industry is economically hard-hit from the pandemic. The sudden shutdowns of offices, schools, and enterprises have increased the demand for cloud solutions and services. 🏠

The spending may come from one or more of the 11 industries whose output is expected to grow over the next 12 months, including chemicals, forestry and paper products, automobiles and auto parts, beverages and food, household and personal use products, banks, other financials, pharmaceuticals and biotechnology, construction materials, technology equipment and software and services. 👔

Even before the pandemic, customers of tech infrastructure companies were increasingly seeking the ability to transition to a variable cost model for their core computing, storage and networking capabilities. And they were looking at cloud-style offerings and pay-as-you-go services to enable this transition. The current crisis has only intensified this preference for OpEx versus CapEx solutions. 💥

In a recent PwC survey, almost 75% of finance leaders said they were planning for a more agile business environment going forward; the cloud’s flexible cost and scalable service can be an important component of this agility. In that same survey, 83% of CFOs cited plans to scale back capital expenses. 📉

Businesses and government entities alike will likely continue to need greater infrastructure capacity — computing, storage and networking. However, they are increasingly seeking cloud-centered hybrid architectures to provide those services. 🌳

The cloud market in verticals such as IT, telecom, BFSI, and media and entertainment has impacted positively due to the work from home initiative. Employees are using cloud collaboration platforms for communicating and consuming OTT streaming services heavily as they need to stay at home amidst lockdowns. 👩🏽‍💻

IaaS (Infrastructure as a Service) enables enterprises to leverage their IT infrastructure without paying for the construction of the physical infrastructure. Moreover, it provides flexibility, mobility, easy, and scalable access to applications, and enhances collaboration to help enterprises focus on their core businesses. 💪🏼

The increasing internet access through smartphones and other devices has spurred the digitalization trend among enterprises that generate large volumes of business data daily. These factors have increased the enterprises' concerns over losing the focus on core business operations and meeting the demand for clients. IaaS helps in reducing the cost of deploying IT infrastructure, hardware, and in hiring skilled resources. These benefits, in turn, are expected to drive the adoption of IaaS. 📲

The retail and consumer goods vertical is one of the fastest-growing verticals with respect to the adoption of emerging and innovative technologies, such as cloud computing, big data analytics, DevOps, digital stores, and social networks. Various factors driving this adoption are the rising purchasing power of customers and the need to satisfy customer expectations leading to the existing customer retention and new customer acquisition. Online retailing and cloud technologies have significantly disrupted the retail and consumer goods vertical leading to the adoption of cloud computing mainly for storage, backup, and security services. 🛒

North America is the most mature market in terms of cloud computing services adoption, due to several factors, such as the presence of many enterprises with advanced IT infrastructure, and availability of technical expertise. APAC is expected to offer significant growth opportunities for cloud computing vendors during the forecast period. Rapid advancements in emerging technologies, IT infrastructure services, and the Internet of Things (IoT) have led many organizations to adopt cloud computing services. 🌏

Amazon retained its market lead, and saw significant growth. According to Synergy, AWS has a worldwide market share of 32 percent, followed by Microsoft which increased its share to 18%. 📈

Google (8%), Alibaba (5%), and Tencent (2%) are also growing their own market share. All three saw revenues increase by 45% or more year on year. ⚙️

If your business is struggling to attract and secure top cloud engineers then get in touch to discuss your hiring needs with UMATR and how we are able to help. 🍕​

☁️☁️☁️☁️🚀☁️☁️

Research Links:

- https://www.globenewswire.com/news-release/2020/08/21/2081841/0/en/Cloud-Computing-Industry-to-Grow-from-371-4-Billion-in-2020-to-832-1-Billion-by-2025-at-a-CAGR-of-17-5.html

- https://www.datacenterdynamics.com/en/news/cloud-providers-see-aggressive-growth-amidst-covid-19-outbreak/

- https://www.pwc.com/us/en/industries/tmt/library/covid19-cloud-infrastructure.html

- https://www.gartner.com/en/newsroom/press-releases/2020-11-17-gartner-forecasts-worldwide-public-cloud-end-user-spending-to-grow-18-percent-in-2021#:~:text=Proportion%20of%20Enterprise%20IT%20Spending,%2C%20according%20to%20Gartner%2C%20Inc.

Share this article