Top Facts You Didn’t Know About Public Cloud market & Impact of COVID-19
Posted by Mrudula Anil Karmarkar on March 30th, 2022
The global public cloud market size is expected to reach USD 596.0 billion by 2027, expanding at a CAGR of 14.6% from 2020 to 2027, according to a new study conducted by Grand View Research, Inc. Owing to the high scalability and reduced operational costs offered by cloud services in the wake of digital transformation of industries, the market is witnessing rapid growth. Moreover, enterprises across the globe are gradually adopting public cloud technology to rapidly build, test, and release quality software products.
The public cloud is a multi-tenant environment, which offers rapid elasticity and high scalability with capability to consume resources on a pay-per-use basis. Governments and institutions are planning gradually to completely integrate its conventional systems with these computing technologies. As a part of the IT Modernization effort, U.S Federal Government had initiated Cloud Smart Strategy in October 2018 to improve citizen-centric services, accessibility, and maintain cybersecurity. Moreover, adoption of the technology is rapidly gaining importance among Small and Medium Enterprise (SMEs) sector due to the cost competitiveness offered in the market.
Currently, most of the enterprises of varying sizes, are revamping from traditional to digital mode of business. The transformation is likely to create potential market for public cloud owing to its benefits such as reduced Total Cost of Ownership (TCO), agility, and flexibility. IBM Corporation states that around 89% of IT professionals expect to move business-critical workloads to cloud, which are driven by the growth in digitization.
Government organizations are also this technology services for storage, disaster recovery, risk compliance management, and identity access management applications. In October 2020, amidst corporate hostility, Microsoft Corporation was awarded the U.S Department of Defense contract, Joint Enterprise Defense Infrastructure (JEDI) worth USD 10 billion. The development of next generation industrial solutions will be cloud enhanced and require a platform to showcase their digital business capabilities. Rise in internet of things (IoT), edge computing, 5G, use of real-time analytics enabled by artificial intelligence (AI), and machine learning (ML) are likely to boost the utility of this computing technology among the organizations.
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The recent outbreak of the pandemic COVID-19 (Coronavirus), has affected several nations and their economies drastically. The industrial operations are being temporarily suspended and national governments being put in crisis mode. The effects of COVID-19 are having a considerable impact on the ICT sector, disrupting the electronics value chain causing an inflationary risk on products. On the other hand, the disruption has accelerated remote working culture and focus on evaluating the end-to-end value chain. With digital transformation, industries are witnessing a change in business models and operational processes. The growth in communication with external partners, other industries, and customers is intensifying, while public cloud is providing a perfect platform for establishing an open inter-company network. Public cloud services cover a large number of functions, from the basics of storage, processing, and networking power through artificial intelligence and natural language processing (NLP) as well as standard office applications.
Public Cloud Market Report Highlights
Public clouds are offered where the physical infrastructure is generally owned and managed by the provider. They may provide either a dedicated or shared operating environment with the ability to scale seamlessly on demand and the benefits of accountability. These services offer features such as unlimited capacity, potentially attractive costs rising from large-scale infrastructures and related operational practices, and a pay-as-you-go pricing model that are making up-front server purchases obsolete.
Partnerships and strategic mergers and acquisitions are anticipated to be the most effective way for industry players to gain quick access in emerging markets and enhance technological capabilities. Also, product differentiation and upgradation is expected to pave the way for the development of companies. Moreover, the rising startup culture and cloud service provider startups such as Snowflake Inc.; Zoom Video Communications.; Slack Technologies; Stripe; Uptake; and Stratoscale will pose potential competition in the market.
In October 2018, IBM acquired the world’s leading open source cloud software provider Red Hat. With the acquisition of Red Hat, IBM is now able to expand its public cloud offerings to a broader range of clients. In the coming years IBM Corporation and Oracle Corporation will not try to gain on the general, hyperscale, global public cloud platform arena that is dominated by Amanzon.com Inc. (AWS), Microsoft Corporation (Azure), Google LLP, and Alibaba. However, IBM will concentrate on helping companies use the OpenShift development platform, to modernize core business applications. Some of the prominent players in the public cloud market include:
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About the AuthorMrudula Anil Karmarkar
Joined: July 2nd, 2020
Articles Posted: 851
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