Drive Growth in Cloud Computing Industry 2020 - Goldstein Market Intelligence

Goldstein

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Market Intelligence

AUGUST 2020

DRIVE GROWTH IN CLOUD COMPUTING INDUSTRY 2020 Goldstein Market Intelligence

WRITTEN BY: Dennis Abraham Vice President Goldstein Market Intelligence

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TM

Market Intelligence

INTRODUCTION More Chief Information Officers and Chief Technology Officers are embracing hybrid IT infrastructure models & incorporating multi-cloud solutions.

According to the latest worldwide market study, five large industry groups are expected to spend a total of USD 37.52 billion on industry cloud solutions in 2018.

The five industry groups are healthcare, public sector, finance, retail and wholesale, plus the manufacturing sector. Among them, manufacturing grew the most, while retail and wholesale were next to increase their investment.

The overall market reached USD 45.41 billion in 2019 with three of the five groups growing above the market average of 21.51%. Healthcare provider and public sector spending are both forecast to grow below the market average, although their 2019 growth rates were higher than those for 2018.

Industry cloud growth rates will continue to accelerate over the next three years, which is very unusual for multi-billion-dollar markets. This growth is being driven by rapidly-digitising industries like healthcare, financial services, and manufacturing, where industry clouds are becoming the cornerstones for next-generation growth and innovation strategies.

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Businesses that take advantage of productivityenhancing cloud services grow 20% faster than their counterparts.

57% of European enterprises view cloud services as “very important” to digital transformation. By 2020, the cloud services segment in Germany is forecast to amount to USD 20.42 billion and there is a great growth opportunity in France and Germany for cloud computing services with low adoption rates of 11% to 12%.

Cloud Spending (USD Billion) By Cloud Services, 2020

35.77

PaaS

46.12

IaaS

122.76

SaaS 0

25

50

75

100

125

Adoption of Multi-cloud Strategies by Enterprises More than 90% enterprises are using 'multiple infrastructure clouds' for their business operations. The breakdown below gives a more detailed look into how enterprises are using multiple clouds today: 80% use multiple public clouds and one or more private or dedicated clouds.

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Why Multi-Cloud is Strategic?

Pick the right cloud tool for the job

Reduce risk of service disruption

Reduce pricing risk

Key Elements of Multi-Cloud

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Cloud computing is driving IT spending overall In 2019 global IT spending increased 3.21% to USD 3.76 trillion with as-a-service models fueling everything from data center spending to enterprise software. It's possible that a large enterprise will consume cloud computing services from every vendor in this guide. The real cloud innovation may be from customers that mix and match the public cloud vendors in unique ways.

Key factors contributed are as follows: Pricing power: Google raised prices of G Suite and the cloud space is a technology where add-ons exist for most new technologies. G Suite, which competes directly with Microsoft's Office 365, is raising its prices for the first time. G Suite Basic will raise prices from USD 5 per user per month to USD 6. G Suite Business will go from USD 10 per user per month to USD 12. According to Google, G Suite Enterprise, which runs USD 25 per user a month, isn't impacted by the price increase. While compute and storage services are often a race to the bottom, tools for machine learning, artificial intelligence and serverless functions can add up. There's a good reason that cost management is such a big theme for cloud computing customers--it's arguably the biggest challenge. Look for cost management and concerns about lock-in to be big themes. cloud cost optimization is a big priority for large companies all the way down to small businesses. Container adoption may also be contributing to cost optimization issues.

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Scan the QR code or click the link below for our study on future of cloud computing industry.

https://bit.ly/3av4qbW

About the author Dennis Abraham Ph.D, senior vice president at Goldstein Market Intelligence, leads GMI's syndicated health and wellness research. Before joining Goldstein Market Intelligence, Dennis held a variety of senior leadership positions in global and regional consulting roles covering consumer and retail insights across a broad range of healthcare categories. Dennis has been providing crosscategory strategic insights to healthcare brands for over 12 years on topics including digital disruption, ecommerce, and healthcare technology. Dennis holds a Ph.d from Havard University.

bit.ly/3acISRt

About Goldstein Market Intelligence Goldstein Market Intelligence helping businesses to be successful at strategy and take informed decisions to grow the business in future. Goldstein Market Intelligence is one of the leading professional services firms, providing Intelligence Services, Consulting & Advisory and research related services to clients. We, at Goldstein Market Intelligence practice works side by side with chief executives and their teams to create effective strategies and secure alignment across the organisation. ŠGOLDSTEIN MARKET INTELLIGENCE

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