Public cloud service market will be a $331.2 billion economy in 2022

Authored by Mr. Vinay Chhabra, CEO,  Real Time Data Services

Digital is revolutionizing the world of constant connectivity and cloud computing is the key component of this revolution. Cloud computing, a billion-dollar economy, has grown to a vast and complex ecosystem of advanced technologies. Organizations are increasingly moving towards a reliable path for business innovation as it provides them with the agility to scale.

The global cloud computing services market size is driven by many factors including cost-effectiveness and its functional capabilities. Gartner provides some interesting insights into the current and future landscape of public cloud computing. It predicts that the worldwide public cloud service market will grow at a compound annual growth rate (CAGR) of 12.6%, to $331.2 billion in 2022, a huge rise from $182.4 billion in 2018.

The Evolving Business Ecosystem

Online delivery services, aggregators, and cloud kitchens have disrupted the retail space. According to Orbis Research, the Global Retail Market is valued at $20.11 billion with a CAGR of 17.7% over the period 2020-25 and companies like Amazon, Alibaba, eBay are expected to be the pioneers of this growth. Moreover, the global healthcare cloud computing industry is expected to reach $35 billion by the year 2022, according to BCC Research Report.

The rate at which some of the industries have been adopting cloud technologies is impressive. Industries like Retail, Healthcare, Banking, Entertainment and Media, Manufacturing, Education, and Logistics are expected to benefit the most from cloud technology.
Currently, organizations spend almost 19% of cloud budgets on cloud-related services, including cloud consulting, implementation, migration, and managed services. Gartner expects this rate to increase to 28% by 2022. The report also predicts cloud system infrastructure services or infrastructure as a service (IaaS), to be the fastest-growing market segment, which is forecast to grow by 26% in 2020 to reach $49.1 billion, up from $38.9 billion in 2019.

The Right Cloud Model

As the cloud goes mainstream, it will continue to dominate enterprise IT decisions. Moving to the cloud offers countless benefits such as the ability to scale, integration with security, integration with applications and/or application development, ease of use, and integration with underlying infrastructure, among many others. However, just like anything else, there are some challenges with implementing a cloud design as well – complexity around security, governance, risk, legacy infrastructure, and so on.

Cloud Data Security

As companies increasingly adopt cloud computing services, cloud security remains the biggest concern. CIOs across multiple business verticals consistently name the security of corporate and customer data as their biggest worry about cloud services, far outweighing other concerns, according to a study conducted by Oxford Economics.

If your business is in a sector like healthcare or finance that must meet regulatory and audit requirements, being unsure of the location of data or losing control of it, can be really troublesome. However, cloud services providers have learned how to better secure their cloud systems. They are building services where they offer the ability to automate and control how the data is managed, stored, processed, utilized, and accessed in the cloud.

It is a fact that constant cloud vigilance is happening. Cloud service providers are getting better at providing security assurance to their customers, and even the enterprises are now aware that they must ensure the security of their data within the cloud services they use.

Towards the Connected Future

Cloud is the future of business and we have moved into what is sure to be the decade of the cloud. Technology leaders are leveraging intelligent converged infrastructure solutions to revolutionize the way they manage data and applications. Multi-cloud favoring the growth of specialized service providers, multi-cloud management platforms becoming the new industry battlefront, next-generation virtual machines powering multi-cloud computing, rising AIOps environment, hybrid cloud computation targeting the AI/ML performance benchmarks are among the major trends that cloud computing industry will witness in coming years.

While it is sure that the pace of cloud adoption is only going to increase, one must design their cloud extension solutions wisely, making sure that it supports the cloud and infrastructure choices today, tomorrow, and beyond.