Global cloud computing market is expected to grow at a CAGR of 28.5% during the forecast period of 2023 to 2030. The concept of Cloud computing has been emerged with increasing demand for Big Data Management. Big data is a collection of large volume of structured and unstructured data generated out of Internet. The management of big data has become crucial with the arrival of Internet era. Big Data drives the demand for data management, information processing, and analytics. It requires a lot of storage space and a cluster of servers to host different users. Thus, cloud computing is a technology derived to manage the issues of Big Data.
Increasing Data Volume and Need for Data Intelligence Compelling the Growth of Cloud Computing
Cloud provides simple IT process and tools in place to support business decision making. Cloud provides organizations with an opportunity to transform their business models and gain a competitive edge. Companies are expanding their business globally with headquarters in multiple regions. Thus, they need to improve efficiency of their business by using collaborative solutions and real time information exchange. Cloud provides flexibility, scalability and cost benefits to the business through its various services. Thus, organizations are keen to adopt an effective cloud based service to enhance their capabilities. Moreover, the e-commerce trend has increased the flow of data over the internet, thus cloud provides various enterprise solutions that help in managing this data and deriving a relevant knowledge from it. Cloud vendors are constantly looking for development in enterprise cloud. A wide range of enterprise cloud services are available including solutions for Sales, Marketing, CRM, Finance, Human Resource, and so on.
Cost Saving Remains as The Most Impactful Motivator for Cloud Migration
There are several reasons why a company or an industry is desperately migrating into cloud. However, the major reason is cost reduction. Cloud services are allowing the businesses to reduce their capital expenditure by eliminating the cost of IT Infrastructure. This section of the report discusses the perspective of the buyers for selecting a cloud service.The buying perspective for choosing among different cloud services varies with the size and type of the business clients are dealing in. For example, a large business firm will pay lesser attention over the cost and go for private cloud for security concerns. However, SMBs are more receptive towards a cost effective solution and are more likely to choose public cloud. Similarly, public organizations, Security Agencies and other firms which cannot compromise with the confidentiality of their data are going for Private Cloud.
SMEs are Significant Target Market Promising Opportunities
The developing economies all over the globe forms a large part of the world economy and are witnessing a higher growth in Small Medium Enterprises. Moreover, now days every business is likely to adopt technological changes to cope up with the competition. SME’s are more likely to implement Software as a Service with public cloud deployment method. Moreover, Public cloud is cost effective that most of the business startups are much inclined towards adoption of public cloud. However, cloud providers prefer to deliver service through local reseller as SMEs are more likely to trust on local vendors they know. Public cloud is preferred by various enterprises as it reduces complexity of workloads and helps the organization in focusing on its core activities. Since public cloud services are hosted outside the organization no internal infrastructure or manpower is needed for maintaining the system. It can be done with just a simple configuration screen.About 30% are using cloud computing to provide agility to their business.
Hybrid Cloud Solutions as Way Forward
The public cloud market is growing extensively as it is much better than the traditional infrastructure and provides a cheaper and quick self-service access to the IT resources. Yet security reason inhibits most of the firms to migrate to a multi- tenant cloud infrastructure. Especially large enterprises are thinking constantly over issues such as compliance, security, isolation, and control. Thus, for firms and industries which are working on customer’s private data or any other confidential information private cloud is the option. However, these firms have to keep all their data in a private cloud which incurs a higher cost.Thus, the need of the time is to develop a hybrid cloud solution so that the company has to keep only confidential data in private cloud while keeping the less sensitive data in public cloud. The issue with the private cloud is that they resemble the traditional IT infrastructure.
Enterprise Users Remain the Largest Users for SaaS Solutions
Software as a service is a cloud service in which the all the applications are managed at the vendor’s side and is accessible to the client only through a web based user interface. The enterprise working on SaaS, need not to install hardware or download any software as the whole application is managed at the server side. At this level companies are only managing the application part, however, platform, storage, operating systems, network bandwidth are all managed outside the organization at the server side. With its Enterprise CRM solutions Salesforce is the market leader in SaaS followed by Oracle, LinkedIn, Netsuite, Concur Technologies and Workday.
Maturing Market in North America, Finds Significant Opportunities in APAC
North America is the world’s largest market for cloud computing with a great diversity of providers and higher adoption rates. However, it is a mature market in cloud computing as compared to the other geographies, thus signifies a slow growth rate. North America is also a leading region for cloud computing innovation. The excellent startup culture and encouragement by the local government to take an investment risk are probably driving the innovation rates. Another reason for the cloud computing growth in North America is high degree of industrialization and, growing use of software solutions in business act ivies. Moreover, Health care is the fastest growing sector. Due to the increasing pressure on healthcare industry to lower the cost of healthcare services, companies are focusing upon Cloud Computing to reduce the cost and resources. Asia Pacific being a home to many developing economies is seen as a great opportunity for cloud computing in near future. Despite of various challenges such as highly fragmented markets, significantly varying regulations among countries and underdevelopment of key underlying technologies such as broadband in some countries that inhibit the growth of multitenant infrastructure, APAC nations are highly competitive in adopting the new technological trends.
Specialized Players to Aggressively Compete with Market Leaders During the Forecast Period
The Cloud Market has witnessed a large number of technological innovations, product launches, mergers and acquisitions, by the key players to boost up their market share. The major players in the market are Salesforce, Amazon, Microsoft, Oracle, Google, IBM, and Rackspace. However, companies such as Engine Yard, Red Hat, HP, Service Now, LinkedIn, and Concur Technologies who have specialized in a particular service model are enforcing tough competition to the market leaders.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Cloud Computing market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Deployment
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Service
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
