Future Scope of Cloud Computing Industry

Worldwide spending on cloud computing services reached USD 151.32 billion in 2018, a boost of 21.48% from USD 124.56 billion in 2018. Driven by the fact that organizations across all industries, from financial services to healthcare, are transitioning to being technology providers.

The top 10 cloud service providers — Alibaba, Amazon, Baidu, Facebook, Google, Microsoft, and Tencent–collectively spent more than USD 61 billion in 2019 on data center infrastructure.

AWS is poised for further growth as Amazon invests in new enterprise sales and marketing resources, expands its AWS Outposts, and launches AWS Local Zones.

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Microsoft Azure gained more ground in enterprise accounts and expanded its channel reach. Microsoft also worked with channel partners to push customers to adopt Azure as support for Windows Server 2008 came to an end. Google Cloud succeeded in generating new enterprise customers and developing its network of channel partners. Alibaba Cloud remained the leader in China as growth took off. Alibaba is looking to expand its customer base across the rest of the Asia Pacific and Europe.

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Key Findings

Cloud technology is a critical enabler of the Industrial Revolution 4.0. As the new Industry Revolution starts the ignition, cloud computing is effectively supporting the developments on the Internet of Things (IoT), automation, and robotics. For the customer, industry cloud services can provide benefits such as lowered entry barriers to cloud adoption, cost efficiencies, speed, business agility, future-proofed solutions, data security, and compliance with specific industry requirements.

In 2019, around 38.54% of companies are already using industry cloud services and approximately 20% of them plan to do so within the next 2 years. Salesforce is the top choice for cloud services in IT & technology companies. While the educational sector prefers StudyRoom over other cloud services.

Market Barriers: Challenges with migration/adoption, difficulty integrating with existing business processes and cost were the three most negative outcomes from using industry cloud services.

In addition to that, major challenges that companies cite in adopting the cloud are comfort levels that bandwidth over the Internet or other networks will be adequate for large data transfers and for real-time information exchanges with on-premises applications; concern about cloud performance; and fear of a loss of control.

Enterprise Resource Planning (ERP) and Customer Relationship (CRM) software are the most go to (popular) applications provided by the cloud. Accounting for more than 60% of total usage, Software as a Service (SaaS) is one of the most in-demand methods used for leveraging cloud computing. It helps the vendor in controlling the application and provides better support. For users, it permits remote access and easy installation.

The global Cloud Computing market size was valued at USD 151.32 billion in 2018 and is expected to expand at a Compound Annual Growth Rate (CAGR) of 23.86% from 2017 to 2025. Factors such as growing digital transformation among industries, rising penetration of internet and mobile devices across the world, and an increase in consumption of big data are the primary drivers fostering the market growth. The development of next-generation industrial solutions will be cloud enhanced and require a cloud platform to showcase their digital business capabilities. The rise in adoption of the Internet of Things (IoT), edge computing, 5G, use of real-time analytics enabled by Artificial Intelligence (AI) and Machine Learning (ML) is likely to boost the utility of this computing technology among organizations.

Written by

Goldstein Market Intelligence helping businesses to be successful at strategy and take informed decisions to grow the business in future.

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