Consainsights logo

Cloud Computing Market

Cloud Computing Market Research Report – Segmented By Service Model (Service Model: Market Drivers, Service Model: Covid-19 Impact, Infrastructure as a Service, Platform as a Service, Software as a Service), By Infrastructure as a Service (Infrastructure as a Service: Market Drivers, Infrastructure as a Service: Covid-19 Impact, Primary Storage, Disaster Recovery and Backup, Archiving, Compute), By Platform as a Service (Platform as a Service: Market Drivers, Platform as a Service: Covid-19 Impact, Application Development and Platforms, Application Testing and Quality, Analytics and Reporting, Integration and Orchestration, Data Management), By Software as a Service (Software as a Service: Market Drivers, Software as a Service: Covid-19 Impact, Customer Relationship Management, Enterprise Resource Management, Human Capital Management, Content Management, Collaboration and Productivity Suites, Supply Chain Management, Others), By Deployment Model (Deployment Model: Market Drivers, Deployment Model: Covid-19 Impact, Public Cloud, Private Cloud), By Organization Size (Organization Size: Market Drivers, Organization Size: Covid-19 Impact, Large Enterprises, Small and Medium-Sized Enterprises), By Vertical (Vertical: Market Drivers, Vertical: Covid-19 Impact, Banking, Financial Services, and Insurance, Telecommunications, IT and ITEs, Government and Public Sector, Retail and Consumer Goods, Manufacturing, Energy and Utilities, Media and Entertainment, Healthcare and Life Sciences, Others), By Region (North America, Europe, Asia-Pacific, Middle East and Africa, Latin America) & Region (North America, Europe, APAC, Latin America, Middle East and Africa) – Analysis on Size, Share, Trends, COVID-19 Impact, Competitive Analysis, Growth Opportunities and Key Insights from 2019 to 2027.

1 Executive Summary

Cloud Computing Market from Consainsights analyses the Cloud Computing Market in the technology-and-media industry over the forecast period to 2025.

The global Cloud Computing market attained a market size of $ 237.68 billion in 2029 and it is anticipated to reach $526.40 by 2025. Cloud computing is the offering of computing services such as analytics, data storage, servers, networking, software, databases, and networking among others via the internet based on use as a pay model. Cloud computing eliminates the need for dedicated on-premise IT infrastructure for companies.

Some of the benefits of cloud computing adoption include cost savings, flexibility, insight, quality control, security, mobility, disaster recovery, collaborations, prevention of loss, automatic software updates, scalability, business continuity. Infrastructure as a Service, Platform as a Service, and Software as a service are the major cloud computing delivery models. COVID-19 has impacted the industry positively. COVID-19 protocols have forced many industries to adopt cloud computing to enable employees to work from home and deliver services online efficiently.

Cost savings due to lower investments in IT infrastructure and storage, increasing adoption of Software as a Service, increasing digital transformation projects in companies, and increasing adoption of artificial intelligence, big data, edge computing, Internet of Things, and machine learning are the major drivers of the market. The increasing number of data breaches due to cyber-attacks, concerns related to information security and data privacy, and stringent compliance and regulatory frameworks are major restraints in the market. The emergence of new technologies and industrial solutions, growth in adoption of hybrid cloud services, and expansion of 5G networks are anticipated to provide growth opportunities for the major players in the market.

The market is segmented by deployment model, service model, enterprise size, and industrial verticals. By deployment type, the market is segmented as public cloud and private cloud. By service model, the market is segmented as Infrastructure as a service, Software as a Service, Platform as a Service, and Serverless Computing. By enterprise size, the market is segmented as small and medium enterprises and large enterprises. By industrial vertical, the market is segmented as BFSI, government, manufacturing, telecommunication, and retail among others.

The market is segmented geographically as North America, Europe, Asia-Pacific, Middle East and Africa, and and Latin America. The North American region is having the largest share in the global cloud computing market. Asia-Pacific region is anticipated to continue to grow with the highest CAGR of xx% during the forecast period.

Key companies operating in the market include Adobe, AWS, Microsoft, IBM, Salesforce, Google, Oracle, SAP and so on. This report covers the detailed analysis of the company profiles such as business segments, product portfolio, key brand insights and growth strategies adopted, company SWOT and Strategy analysis along with the financial analysis and analyst insights on the key companies operating in this market.

2 Market Overview

Cloud computing is the hosted IT resources services delivery on demand via the internet with a pricing model of pay as you go. Cloud computing allows client devices in accessing data via the internet from remote databases, computers, and servers. The central server utilizes middleware and software for managing connectivity between various cloud servers and client devices. The computing services include analytics, artificial intelligence, databases, intelligence, natural language processing, networking, software, storage, and servers.

The major cloud computing services are Infrastructure as a Service, Software as a Services, and Platform as a Service. The cloud can be public, private, or hybrid. Cloud computing. offers flexible resources, economies of scale, and speedy innovation. The companies can save money by not incurring initial investment, not owning data centers or computing infrastructure, and also by avoiding the complexity of maintaining their own IT infrastructure.

Currency, Year & Forecasts Overview

Market Dynamics

3 Drivers: Increasing Adoption of Software as a Service

Software as a Service provides subscription and connection to IT services created on the shared infrastructure through the cloud via the internet. This allows companies to use software or services on demand than having to maintain an IT infrastructure to deploy, store and manage. It saves companies a huge amount of money with the elimination of initial investments in infrastructure for software deployment. Emails, ERP software, CRM software, Salesforce software, IT helpdesk, SAP software, etc are some of the widely subscribed software services worldwide.

COVID-19 pandemic has necessitated small and large enterprises to subscribe to SaaS for the smooth flow of their services and accessibility of software for the employees who work from home. Large enterprises are early adopters of SaaS and their subscription is anticipated to continue during the forecast period. Small and Medium enterprises are adopting the SaaS significantly and it is anticipated to aid the growth of the segment. SaaS generates more revenue than PaaS and IaaS. SaaS is anticipated to generate XX billion in revenues for IT vendors.

Restraints

Increasing Number of Data Breaches Due to Cyber Attacks

Norton recorded nearly 4 billion record exposures in 2019. According to HelpNet Security, there were more than 7098 breaches that exposed 15.1 billion records in 2019. According to Security Magazine, nearly 500 million personal records were stolen in 2018. According to Risk based Security, there was 36 billion record exposure due to data breaches in 2020. SolarWinds cyber-attack has affected hundreds of companies worldwide and it exposed millions of records in 2020.

The hackers from Russia planted malware in the systems of companies and government agencies. Microsoft has reported that SolarWinds hackers have carried out cyberattacks against the US and other countries in May 2021. The number of ransomware attacks is progressively increasing annually. The Healthcare system is the most affected sector. As the data breaches threaten the security of critical business data, many companies are reluctant to adopt cloud computing, even though there is good cybersecurity protection attached to the services.

Opportunities: Increasing Adoption of Hybrid Cloud Services

A hybrid cloud solution combines one private cloud with one or multiple public cloud services along with a third-party vendor. The hybrid cloud solution allows companies to deploy their workloads in public clouds or their private IT environments, and it is moved between them as per the computing requirements and change of cost. Hybrid cloud services provide enterprises more control over their critical private data. The reliability of the hybrid cloud is more as the services are distributed across numerous data centers.

Flexibility, cost savings, agility, scalability, resiliency, interoperability, and compliance are the major factors that drive the increasing adoption of hybrid clouds. Hybrid cloud allows enterprises to expand their IT infrastructure and applications as per the requirement. It enables the faster performance of the services and better delivery to the users. There are more SME’s and large enterprises adopting digital transformation and hence there is greater opportunity for the adoption of hybrid cloud. AWS, Google, and Microsoft among others provide hybrid cloud services at competitive rates and it also drives the adoption of hybrid cloud.

Trend Analysis

More enterprises are adopting multi-cloud and hybrid cloud. The adoption of the public cloud is anticipated to grow significantly and continue to increase. AWS, Microsoft, and Google dominate the public cloud computing segment. Major traditional IT vendors are under pressure to retain their enterprise market share by developing public cloud integrations. Due to the two waves of the COVID-19 pandemic, the increasing cloud expenditure of many enterprises is beyond control. It also has made virtual cloud desktops offerings ideal for those working from home due to shared licensing, pay-as-you-go subscriptions, and security advantages.

Serverless Cloud Computing is luring more developers and engineers due to the portable scalable platforms. PaaS is anticipated to have huge growth in adoption during the forecast period due to the increasing digital transformation of enterprises. With the introduction of 5G technology, which offers high-speed connectivity, low latency, and the capability of handling huge data from game streaming services, cloud computing is anticipated to grow significantly. Gamers do not need consoles as games are directly run from the server. Cloud-based application development is anticipated to increase as it provides optimal speed and data security. Artificial intelligence will improve the speed and efficiency of cloud computing and it is anticipated to be widely utilized in the workspaces.

The hybrid and on-premise cloud solutions are anticipated to find more acceptability due to the security and control over critical data factors. Cloud computing is making collaboration tools simple and more specific. The Healthcare sector is anticipated to adopt cloud computing significantly as it allows healthcare systems in storing data online. It helps in providing telehealth services, and online medical check-ups and consultations.

Porter's Five Force Analysis

4 By Service Model

Introduction

Based on service model, software as a service is projected to dominate the global market throughout the forecast period. The segment held 37.10% share in 2019.

Infrastructure as a Service

Platform as a Service

Software as a Service

5 By Infrastructure as a Service

Introduction

IaaS is a cloud computing service through which a vendor offers access to users to virtual machines, processing, storage, servers, and networking among other computing resources via the internet by paying as per the use. Service vendor’s infrastructure is utilized by the organizations for using their applications and platforms. IaaS is offered in private, public, and hybrid cloud models. IaaS allows companies to focus specifically on their core business activities.

Primary Storage

Disaster Recovery and Backup

Archiving

Compute

6 By Platform as a Service

Introduction

PaaS is a cloud computing model in which a framework is delivered to the developers, by the cloud service provider, so that they can develop, test and deploy applications by utilizing operating systems, infrastructure, and development tools. Developers could maintain applications management, while the third-party service provider or the enterprise manages all networking, storage, and servers. AWS Lambda, Cisco WebEx, Dropbox, Salesforce Lightening Platform, Red Hat Open Shift, IBM Cloud Foundry, Google Workspace, and Oracle Cloud Platform are some of the major PaaS solutions. PaaS dominates the segment with nearly 30% share.

Application Development and Platforms

Application Testing and Quality

Analytics and Reporting

Integration and Orchestration

Data Management

7 By Software as a Service

Introduction

SaaS is a software licensing and delivery model through which a cloud service vendor hosts applications and makes those available to the users via the internet. The software vendor utilizes third-party cloud providers or hosts in their infrastructure. Business service software such as billing, CRM, ERP, and sales are offered by companies as SaaS. Both B2C and B2B companies make use of this service. Project Management, live chat, help desk, invoice application, analytics, email marketing, etc are some other use cases that are increasing the demand for SaaS globally. SaaS accounts for nearly a quarter of all enterprise software delivered.

Customer Relationship Management

Enterprise Resource Management

Human Capital Management

Content Management

Collaboration and Productivity Suites

Supply Chain Management

Others

8 By Deployment Model

Introduction

On the basis of deployment mode, the private cloud sub segment is expected to witness highest CAGR during the forecast period. The public cloud segment accounted for 74.1% share in 2019.

Public Cloud

Public cloud is computing services offered by third-party service providers via the internet. It is made available to those who want to purchase or use them. It may be available for free or sold on demand, by a mechanism by which customers have to pay based only on storage, bandwidth consumed, or for CPU cycles. It reduces the requirement for enterprises to investing in and managing their own IT infrastructure. The public cloud is having the most demand among cloud computing deployment types. The physical hardware in the public cloud is shared among multiple companies and hence it is easier to divide the infrastructure cost among numerous users.

Private Cloud

With the private cloud, the computing services are offered through either the private internal network or the internet and it is only accessible to select users. Private clouds offer higher security levels and privacy through internal hosting and company firewalls for ensuring sensitive data and operations are not accessible to third parties. The private cloud utilizes virtualization technology for combining resources obtained from physical hardware turn into a shared pool. The private cloud is mostly used by large organizations, financial institutions, and governments among others.

9 By Organization Size

Introduction

Based on organization size, the large enterprises sub segment is expected to occupy significant share in 2019. The segment is anticipated to maintain its dominance over the forecast period.

Large Enterprises

According to OECD, enterprises with more than 250 employees are large enterprises. Large enterprises are adopting cloud services as part of their IT modernization. Many of them implemented cloud-first strategy or SaaS solutions. Large enterprises use private clouds mainly due to the privacy and security aspects. Moreover, it offers increased control over their IT environment. Flexibility in bandwidth and resources, Data governance, increased productivity, decrease in carbon footprint, applications and services hosting, portability of employees, less investment in on-premise infrastructure, document control, and competitiveness are some other factors that drive large enterprises to adopt cloud computing. Covid-19 regulations have forced large enterprises to let a significant percentage of their workforce work from home. This has helped in the increased adoption of cloud computing and increased investments related to it by large enterprises.

Small and Medium-Sized Enterprises

Small & Medium Size Enterprises: Enterprises with 50 to 250 employees are generally considered as small and medium-sized enterprises. However, the yardsticks of revenue, assets, and number of employees vary from country to country. Cloud computing has emerged as beneficial for SMEs in terms of quicker access to low-cost and flexible Information Technology resources, services on-demand, no requirement for high investment on-premise IT infrastructure, portability, payment as per usage, data security, software updates, protected data storage, emergency data backup and recovery, and better collaboration among others. Cloud computing adoption among SMEs is more in developed countries when compared to that in developing and less developed nations. The demand for migration to cloud computing from SMEs when compared to large enterprises is anticipated to increase significantly during the forecast period.

10 By Vertical

Introduction

On the basis of verticals, IT and ITeS sub-segment is anticipated to hold maximum share over the forecast timespan i.e., 2020-2025. The segment held 20.20% in 2019 and expected to witness remarkable growth during the forecast period.

Banking, Financial Services, and Insurance

Increasing online banking and other financial transactions have forced BFSI enterprises to adopt digital transformation and it necessitated the use of cloud computing. COVID-19 has increased online transactions in the BFSI sector. Cloud integration helps BFSI institutions to capitalize modular capabilities and reduce investments related to hardware and software of IT infrastructure. Cloud computing allows BFSI companies to adapt to technology demands, customer requirements, and changing markets. Data backup of information, virtualized security applications, and data security with denying unauthorized access to cybercriminals, data-driven insights, and increase in productivity related to various applications have made cloud computing more useful to BFSI enterprises. Having more information related to the customers allows BFSI enterprises to serve their customers better with better products and personalized information.

Telecommunications

IT and ITEs

Government and Public Sector

Governments have critical data related to various departments to store. Many governments are digitalizing their departments. Cloud computing reduces the overall cost of ownership and maintenance of IT infrastructure for governments and pay as you use the service model provides cost savings. Security, agility, interoperability, portability, fast deployment, transparency, measured services, elastic services, and awareness are some of the factors that are driving the adoption of cloud computing by governments. Cloud computing allows collaboration between various government agencies. Nearly 50% of all US Government agencies use cloud services for securing IT infrastructure and saving costs.

Retail and Consumer Goods

Manufacturing

Energy and Utilities

Media and Entertainment

Healthcare and Life Sciences

Others

11 North America

Introduction

North America is the largest regional cloud computing market with an xx% global share. The presence of major cloud computing service providers such as IBM Corporation, Google LLC, AWS, and Oracle Corporation among others helped in the early adoption of cloud computing in the region. Moreover, the companies in the region are adopting digital transformation and new technologies that necessitate the requirement of cloud computing. Cost savings related to the elimination of on-premise IT infrastructure has induced a huge number of companies to adopt cloud computing. Higher adoption of cloud-based services is also driving the growth of the market. Citrix acquired collaboration platform Wrike with $2.25 billion.

United States

The presence of top cloud computing service providers and third-party IT vendors are driving the adoption of cloud computing in the US. The Cross Border Privacy Rules necessitates companies to demonstrate compliance with data privacy protection regulations recognized by international agencies. As many American enterprises have a presence in various nations, cloud computing compliant with the regulations helps in the faster geographic expansion of services. Accenture has an agreement to acquire Imaginea, a cloud-native platform, and product engineering company.

Canada

12 Europe

Introduction

The progressive growth in the digital transformation of companies in various industries drives the growth of the European cloud computing market. Increasing adoption of SaaS, hybrid cloud, and cloud computing services in various countries in Europe further enhances the growth of the market. European Commission targets enabling European businesses access to sustainable, interoperable, and secure cloud services and infrastructures. EC is trying to increase data sovereignty and they have invested heavily in cloud computing initiatives. This is driving the adoption of cloud computing services with the European Union. They expect that nearly 80% of the global data to be processed in smarter data centers based on edge computing closer to the user. Finland, Italy, Sweden, Denmark, Holland, Ireland, Croatia, and Belgium are the leading enterprise-level cloud computing nations within the European Union.

United Kingdom

Greater rate of adoption of cloud services by the enterprises in the UK drives the growth of the cloud computing market in the UK. According to Cloud Industry Forum, nearly 48% of the organizations are already using some form of cloud computing. After Brexit, the UK government has initiated ‘The One Government Cloud Strategy’ that deals with cloud services in the public sector. The government invested significantly in cloud computing and promoted public cloud for public sector companies. SaaS is the dominant cloud computing delivery model in the United Kingdom.

13 Asia Pacific

Introduction

Asia-Pacific region is anticipated to grow with the highest CAGR of xx% during the forecast period. The growth in industries in Australia, China, India, and South East Asian countries are driving the growth of the market. Huge investments made by governments in cloud computing for various government agencies also enhanced the growth of the market. Many large companies have moved their core business to cloud computing platforms. The presence of AWS, Alibaba, HCL Technologies Limited, Huawei, and other major tech companies is driving the adoption of cloud computing. The stringent regulations that necessitate the storage of data within the country have forced cloud computing service providers to set up data centers in specific countries. The adoption of the public cloud is growing on a large scale in the region due to the increasing subscription of Infrastructure as a Service. The introduction of 5G technology services has led many telecommunications companies in the region to adopt cloud computing and many of them are providing cloud services to other companies. Wipro acquired Ampion, an Australian company, with $117 million for expanding the cloud services.

14 Middle East & Africa

Introduction

The digitalization initiatives by governments, smart city projects, and companies migrating their IT infrastructure to the cloud are driving the growth of the cloud computing market in the MEA region. The investment in cloud technologies in countries such as Saudi Arabia, Qatar, Egypt, UAE are anticipated to rebound after the waning of the COVID-19 pandemic. The increasing adoption of cloud computing by SME’s, increasing investments in IaaS by large enterprises, increasing adoption of SaaS subscriptions, and growing investments in digital technologies are further driving the growth of cloud computing in the MEA region. Retailers in the region migrated their business operations online and it generated more demand for cloud computing. Larger cloud computing vendors are making partnerships with smaller vendors to benefit from the cloud computing potential in Latin America and MEA. Cloud computing adoption in Africa is gathering pace with the increasing adoption of enterprise cloud services. Nearly 66% of the businesses in South Africa benefit from the adoption of cloud services. Banks in Africa are adopting cloud to get hold of money laundering. The entry of major companies such as IBM Corporation, AWS, Huawei, and Microsoft with the deployment of data centers provided the base for cloud computing in Africa. Increasing internet connectivity, affordability of smart devices among enterprises, and digital transformations of enterprises are anticipated to drive the growth of the market in Africa during the forecast period.

15 Latin America

Introduction

The increasing adoption of cloud services and increasing popularity of service-oriented architecture are major factors in the growth of the cloud computing market in the Latin American region. Increasing adoption of IaaS subscription, initiatives of governments to develop digital economies, entry of new telecom firms is further driving the growth of the market in Latin America. In the post-COVID era, Latin American companies are anticipated to increase investments in IT, hybrid cloud, IaaS, and SaaS.

Adobe

Company Description

Adobe offers solutions related to creativity and design, marketing and commerce, pdf and e-signatures and business solutions. A few of the creativity and design solutions include Photoshop, Lightroom, Illustrator, Premiere pro, InDesign and, Adobe Stock amongst others. The company offers advertising cloud, analytics, audience manager, campaign, experience manager and, real time CDP amongst others. Adobe offers solutions for large, medium and small enterprises. Moreover, the company operates across different industry verticals such as financial services, healthcare, media and entertainment, retail, travel and hospitality, government, telecommunication, manufacturing and education amongst others. Furthermore, the solution offered by Adobe can be deployed both on iOS and android. Additionally, the company has several offices across continents.

Key Growth Strategies

The company adopts organic growth strategies to strengthen their foothold in global market. Some of the strategies include product launches and innovations, strategic mergers and acquisitions, and R&D investments. For instance,

In November 2020, the company announced to acquire Workfront for $1.5B. Workfront is one of the major developers of work management platform. The contract is intended to help marketing companies to manage their marketing campaigns and execute workflows to the Adobe Experience Cloud.

In March 2019, Adobe announced the launch of Commerce Cloud, a fully managed cloud-based version of the Magento platform. The new platform is integrated with Adobe’s Advertising Cloud, Marketing Cloud, and Analytics Cloud.

16 Research Methodology

This research study involved the usage of extensive secondary sources, directories, and databases such a Hoovers, Bloomberg Business, Factiva, and Avention, in order to identify and collect information useful for this technical, market-oriented, and commercial study of the global virtual data room market. The primary sources were mainly industry experts from the core and related industries. These include service providers, technology developers, standards and certification organizations, and organizations related to all segments of the value chain.

In-depth interviews were conducted with various primary respondents, which include key industry participants, subject-matter experts (SMEs), C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information as well as to assess future prospects.

Various secondary sources were referred to for the identification and collection of information for this study. Secondary sources include annual reports, press releases, and investor presentations of companies, white papers, medical journals, certified publications, articles from recognized authors, gold standard and silver standard websites, directories, and databases.

Secondary research was mainly used to obtain key information about the industry’s supply chain, market’s monetary chain, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, geographical markets, and key developments from both market-and technology-oriented perspectives.

After the market engineering process (which includes calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation) was completed, extensive primary research was conducted to verify and validate the critical numbers arrived at. Primary research was also conducted to identify the segmentation types; industry trends; key players; the competitive landscape of global virtual data room market; and key market dynamics such as drivers, restraints, opportunities, challenges, and key industry trends.

In the complete market engineering process, both top-down and bottom-up approaches were extensively used along with several data triangulation methods to perform market estimation and market forecasting for the overall market segments and sub segments listed in this report.

17 Appendix

Available Customisations

With this full-market report, Consainsights offers customization options to our clients.

Custom Research: Consainsights offers custom research services across the Industries we track. In case of any custom research requirement, please send your inquiry at [email protected]

Related Reports

Drivers: Increasing adoption of Software as a Service

The digitalization initiatives by governments, smart city projects, and companies migrating their IT infrastructure to the cloud are driving the growth of the cloud computing market in the MEA region. The investment in cloud technologies in countries such as Saudi Arabia, Qatar, Egypt, UAE are anticipated to rebound after the waning of the COVID-19 pandemic. The increasing adoption of cloud computing by SME’s, increasing investments in IaaS by large enterprises, increasing adoption of SaaS subscriptions, and growing investments in digital technologies are further driving the growth of cloud computing in the MEA region. Retailers in the region migrated their business operations online and it generated more demand for cloud computing. Larger cloud computing vendors are making partnerships with smaller vendors to benefit from the cloud computing potential in Latin America and MEA. Cloud computing adoption in Africa is gathering pace with the increasing adoption of enterprise cloud services. Nearly 66% of the businesses in South Africa benefit from the adoption of cloud services. Banks in Africa are adopting cloud to get hold of money laundering. The entry of major companies such as IBM Corporation, AWS, Huawei, and Microsoft with the deployment of data centers provided the base for cloud computing in Africa. Increasing internet connectivity, affordability of smart devices among enterprises, and digital transformations of enterprises are anticipated to drive the growth of the market in Africa during the forecast period.