Future of Cloud Computing Sector - Goldstein Market Intelligence
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The global cloud computing market reached USD 151.32 billion in 2018 and is projected to grow at a CAGR of 23.86% through 2025, driven by digital transformation and increased IoT adoption. Major cloud providers, including AWS, Microsoft Azure, and Alibaba Cloud, continue to invest heavily in infrastructure and client acquisition, while SaaS remains the dominant service model. Challenges in migration and integration, as well as concerns regarding performance, pose barriers to full cloud adoption for many organizations.
Future of Cloud Computing Sector - Goldstein Market Intelligence
- 1. FUTURE OF CLOUD COMPUTING SECTOR Goldstein Market Intelligence A U G U S T 2 0 2 0 W R I T T E N B Y : Dennis Abraham Vice President Goldstein Market Intelligence Goldstein Market Intelligence TM Published by
- 2. Goldstein Market Intelligence ©GOLDSTEIN MARKET INTELLIGENCE PAGE 02 MARKET OUTLOOK 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. TM 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. ©Goldstein 2020 | August Update
- 3. 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 Asia Pacific and Europe. Goldstein Market Intelligence SaaS 62.4% IaaS 25% PaaS 12.6% ©GOLDSTEIN MARKET INTELLIGENCE PAGE 02 TM Saas 62.4% Paas 12.6% Iaas 25% 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 educational sector prefer 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.
- 4. Goldstein Market Intelligence In addition to that, major challenges that companies cite in adopting the cloud are comfort levels that bandwidth over 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. data are the primary drivers fostering the market growth. The development of next generation industrial solutions will be cloud enhanced and require cloud platform to showcase their digital business capabilities. Rise in adoption of 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. 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 increase in consumption of big ©GOLDSTEIN MARKET INTELLIGENCE PAGE 03 TM
- 5. Goldstein Market Intelligence Goldstein Market Intelligence helping businesses to be successful at strategy and take informed decisions to grow the business in 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 works side by side with chief executives and their teams to create effective strategies and secure alignment across the organisation. Dennis Abraham Ph.D, senior vice president at Goldstein Market Intelligence, leads GMI's syndicated health and wellness research. Before joining Goldstein Market Intelligence, Dennis held a variety of senior leadership positions in global and regional consulting roles covering consumer and retail insights across a broad range of healthcare categories. Dennis has been providing cross- category strategic insights to healthcare brands for over 12 years on topics including digital disruption, ecommerce, and healthcare technology. Dennis holds a Ph.d from Havard University. ©GOLDSTEIN MARKET INTELLIGENCE PAGE 09 About Goldstein Market Intelligence About the author bit.ly/3acISRt Scan the QR code or click the link below for our study on future of cloud computing industry. bit.ly/3j35QxG TM