Cloud computing is an on-demand IT service delivery approach that provides storage, networking, database, and analytics over the internet. With the shift to a work-from-home model taking the spotlight during a pandemic, it is expected to see an exponential evolution. Advancing technologies like AI, big data, and Machine Learning are catering to this rapid growth of cloud computing, aiming toward the Industry 4.0 revolution. With the focus of all businesses on the flexibility of moving and story data, achieving scalability, mitigating any risks, and reducing any complexities in storage and infrastructure, the cloud computing market is on a galloping rise.
The cloud computing market is evaluated at USD 219,000 million in 2020 and it is expected to grow up to the value of USD 750,100 million by 2027. The CAGR of this growth is expected to be 30.10%. This shows that the market is gearing up for galloping growth in the near future, With the innovations and trends taking the cloud computing market by storm, it is expected that cloud computing will constantly evolve at lightspeed.
Amidst Exponential Growth in Cloud Computing Adoption, What Trends Should We Look Forward to?
- Hybrid Cloud Model: Businesses are balancing the hybrid strategy which allows them to frequently access data through public servers as well as insensitive data through private services which required monitored access. The organization's flexibility improvement is an important factor in adopting this cloud model. The power to encrypt and replicate data between your own network before transferring is one of the benefits of a hybrid cloud model.
- Multi-cloud Model: Multiple services provided by a diverse group of suppliers are increasingly propelling the multi-cloud environments organizations are gradually embracing. This will allow them to close multiple cloud offerings and use them to the tailored requirements of their individual application environments, and business needs.
- Kubernetes for Blockchain: Blockchain is a distributed ledger that records data over a private and public network. Kubernetes is an open-source container orchestration platform and helps in rapidly scaling data, deployment, and managing the infrastructure of the container. It provides upgradeability and simplified deployments of big data while blockchain cannot scale data when it comes to big data storage and management,
- Serverless Computing: Serverless functions of computing allows organizations to eliminate any risk of back-end failures and provide space for their safe implementation of code. It is beneficial in the case of the pay-as-you-go model as the organizations only have to pay for services that they are actually using without any significant capital investment.
- Edge Computing: Edge computing is one of the most typed trends when it comes to cloud computing. It is a decentralized computing infrastructure that helps in increasing the speed of data processing, decreasing latency issues, increasing the perforation of applications, security, and privacy support, increasing and better connectivity, and decreasing the volume of transmitted data. For companies looking to develop operational efficiency, edge computing is the answer to it.
- Artificial Intelligence: The interweaving of AI and cloud computing is significant in delivering AI services. It helps cloud services to expand their consumer base. The application goes hand in hand with providing data insights and managing it as well as data backing up and recovering it in a virtual environment. Advanced machine learning functions and AI-enhanced business services access shows the evolution of this mutual relationship between AI and cloud computing.
- Cloud Gaming: Cloud gaming is gradually taking over the market as this emerging technology allows players an unlimited option of games for a flat monthly fee which can be played from any smart device without wasting on any expensive console. Storage spaces, piracy issues, high over cost, and non-sustainability are some of the issues that cloud-gaming tackles. Providing a diverse choice for players, the cloud gaming market’s major players like Amazon, Nvidia, Apple, Samsung, Google, Microsoft, and Sony are gradually climbing up the proverbial ladder.
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Let’s Look at the Top 5 Startups That are Taking the Cloud Computing Market by Storm
With the shift of enterprise IT to the cloud, tech startups are trending with more than USD 1.3 trillion in capitalization which is expected to grow up to US 1.8 trillion by 2025. They specialize in Software-as-a-Service (SaaS), data analytics, storage, and monitoring and management.
- Amperity: This company uses AI to cater to identifying, understanding, and connecting with their customers, and providing transparent, intelligible, and actionable insights. The company recently unveiled Ampertity profile Accelatorw which helps businesses in creating marketing cloud activations from a proper and user-friendly dataset. AWS has recently collaborated with Amperitt to help companies with digital transformation. It provides cloud-based customer-centric tools and AI-driven insights to help them achieve record results.
- Filebase: Filebase deems itself the world’s first object storage platform. It is powered by multiple decentralized storage networks. It utilizes Web3 by providing object storage which is built on decentralized networks and can be accessed from any location in the world. It allows the users to store data more securely in a decentralized platform. It also provides file management configurations, NAS device configurations backup client configurations, and so on.
- Kong: Kong is popular for its API ( Application Programming Interfaces) Gateway, based on Konnect Cloud and Kuma which provide end-to-end connectivity. This startup is a creator of software and managed services that allow connection to APIs and microservices across clouds, data centers, and Kubernetes using intelligent automation. Reliability and security are the top factors. Expanding it operations in the UK and Europe this startup aims to boost productivity, and innovation cycles and bridge old as well as novice systems and applications.
- Wasabi Technologies: This startup provides cloud storage to its customers by helping organizations store and access an unlimited amount of data, which is 1/5th the price of normal cloud storage. It serves over 100 countries providing secure and affordable storage to organizations. With USD 275 million in its total funding, it is expanding its market in the Asia Pacific. It caters to customers helping them store data from backups, video surveillance, ransomware recovery, and many others.
- Privacera: This startup is a data security and governance platform based on SaaS. It allows analytics teams to access any data without imposing local regiuloations. It allows securing sensitive data across multiple cloud services like Google Cloud Platform, AWS, Azure, Snowflake, and Databricks. It is used by Fortune 500 customers for automation of sensitive data discovery and ease of policy management. With the release of PriveceraCloud 4.3 and Privacera Platform 6.3, complete automation of data governance and support across the cloud partner ecosystem are provided.
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Hybrid Cloud Models and Shift in Workplace Mode, How does the Future Cloud Computing Market Look Like?
More than a 300% increase in 8x8 Videos Meeting cloud solution has been observed, as per SkyQuest’s analysis in the advent of the pandemic across 150 countries. The rise in traffic and usage of platforms like Zoom, Google Hangouts, Slack, Ding Talk, and so on caused by the pandemic shows a glimpse of where the market is headed in the future. Streaming platforms, too, have seen a sharp rise in their demands as Netflix, Amazon, Disney+, Twitch, Hulu, Youtube, and Apple TV take over the video streaming market.
However, other sectors are not to be underestimated when it comes to using cloud computing to their advantage. For instance, in September 2021, Salesforce unveiled Health Cloud 2.0. This innovation gave enhanced safety to its employees and customers using models like Dreampass and Contact Tracing. Another such innovation can be traced back to December 202, when AWS unveiled Amazon Helathlake for providing solutions to customers from the healthcare and life science industry.
As the growth of the cloud computing market is categorized as per 2021’s data, it is observed that the IT and Telecom market holds a 25% share in the revenue of this market. With an increase in the implementation of cloud computing for privacy, security, and enhanced scalability purposes, the IT market is seeing exponential growth. For instance, in November 2020, IBM Cloud for Telecommunications was introduced with more than 35 partners joining the IBM ecosystem. It focuses on edge computing and 5G technology. It is followed by a 20% share held by the BFSI segment. The Healthcare sector is rapidly catching up with an 18% market share. As per SkyQuest’s analysis, the healthcare sector is expected to grow at the fastest rate based on recent trends.
There is a vast scope in the SME segment when it comes to the adoption of cloud services which remains open. According to SKyQuest’s survey employees between 1 and 999 are segmented under the SME. The benefits of scalability, reduction in operational cost, tailored business offerings for businesses, and flexibility are expected to cause the rise in demand in the SME segment.
The increasing need of implementing cloud computing while overcoming the changes in security and privacy causing business losses and shutdowns will leave the market open for growth in related areas. As per the trends, the hybrid cloud model is one of the newest hypes which will change the future of the cloud computing market. It will provide the organizations with increased security, efficient integration with DevOps teams as well as an improved workload management. The potential in hybrid CSP is vast and opens options and scopes for businesses to fulfill.
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