Drive Growth in Cloud Computing Industry

More Chief Information Officers and Chief Technology Officers are embracing hybrid IT infrastructure models & incorporating multi-cloud solutions.

· According to the latest worldwide market study, five large industry groups are expected to spend a total of USD 37.52 billion on industry cloud solutions in 2018. The five industry groups are healthcare, public sector, finance, retail, and wholesale, plus the manufacturing sector. Among them, manufacturing grew the most, while retail and wholesale were next to increase their investment.

· The overall market reached USD 45.41 billion in 2019 with three of the five groups growing above the market average of 21.51%. Healthcare providers and public sector spending are both forecast to grow below the market average, although their 2019 growth rates were higher than those for 2018.

· Industry cloud growth rates will continue to accelerate over the next three years, which is very unusual for multi-billion-dollar markets. This growth is being driven by rapidly-digitizing industries like healthcare, financial services, and manufacturing, where industry clouds are becoming the cornerstones for next-generation growth and innovation strategies.

Businesses that take advantage of productivity-enhancing cloud services grow 20% faster than their counterparts.

57% of European enterprises view cloud services as “very important” to digital transformation. By 2020, the cloud services segment in Germany is forecast to amount to USD 20.42 billion and there is a great growth opportunity in France and Germany for cloud computing services with low adoption rates of 11% to 12%.

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Adoption of Multi-cloud Strategies by Enterprises

More than 90% of enterprises are using ‘multiple infrastructure clouds’ for their business operations. The breakdown below gives a more detailed look into how enterprises are using multiple clouds today: 80% use multiple public clouds and one or more private or dedicated clouds.

Why Multi-Cloud is Strategic?

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Key Elements of Multi-Cloud

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Cloud computing is driving IT spending overall

In 2019 global IT spending increased 3.21% to USD 3.76 trillion with as-a-service models fueling everything from data center spending to enterprise software. A large enterprise may consume cloud computing services from every vendor in this guide. The real cloud innovation may be from customers that mix and match the public cloud vendors in unique ways.

Key factors contributed are as follows:

Pricing power: Google raised prices of G Suite and the cloud space is a technology where add-ons exist for most new technologies. G Suite, which competes directly with Microsoft’s Office 365, is raising its prices for the first time. G Suite Basic will raise prices from USD 5 per user per month to USD 6. G Suite Business will go from USD 10 per user per month to USD 12. According to Google, G Suite Enterprise, which runs USD 25 per user a month, isn’t impacted by the price increase. While computing and storage services are often a race to the bottom, tools for machine learning, artificial intelligence, and serverless functions can add up. There’s a good reason that cost management is such a big theme for cloud computing customers — it’s arguably the biggest challenge. Look for cost management and concerns about lock-in to be big themes. cloud cost optimization is a big priority for large companies all the way down to small businesses. Container adoption may also be contributing to cost optimization issues.

About Goldstein:

Goldstein Market Intelligence helping businesses to be successful at strategy and take informed decisions to grow the business in the future. Goldstein Market Intelligence is one of the leading professional services firms, providing Intelligence Services, Consulting & Advisory, and research-related services to clients. We, at Goldstein Market Intelligence practice, work side by side with chief executives and their teams to create effective strategies and secure alignment across the organization.

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