Market Trends of Function As A Service Industry
Hybrid Cloud to Drive the Growth of the Market for Security and Privacy Concerned End Users
- The hybrid cloud market is expected to drive market growth as they are highly used compared to other clouds. Hybrid cloud deployment helps companies reduce their investment for handling short-term spikes in demand and when the business needs to free up local resources for more sensitive data or applications.
- With the rise in fluctuating demand for computing and processing, hybrid cloud deployment allows companies to scale their on-premises infrastructure up to the public cloud to handle any overflow without giving third-party data centers access to the entirety of their data. These developments have adequately addressed the concerns of the end-users, who were concerned about their data security and were earlier hesitant to switch to this solution.
- The growth of cloud and industrialized services and the decline of traditional data center outsourcing (DCO) indicate a massive shift towards hybrid infrastructure services. While the conventional DCO market is shrinking, spending on colocation and hosting is increasing along with infrastructure utility services. This is expected to drive the shift toward cloud infrastructure-as-a-service (IaaS) and hosting. Owing to its benefits, hybrid cloud deployment occupies a continuously increasing share of the cloud market.
- Moreover, hyper-scale activity leveled out at the end of the previous year as demand drivers that spiked in recent years began to plateau, including enterprise clients utilizing hybrid IT solutions to accommodate remote working mandates. This trend will likely continue, albeit faster than in the last few years.
- Furthermore, the hybrid cloud market has experienced significant overall growth in the past few years compared to other cloud services. It offers certain benefits to organizations with a vast data set. Using a hybrid cloud allows companies to scale computing resources and helps eliminate the need to invest massive capital in handling short-term spikes in demand when the business needs to free up local resources for more sensitive data or applications.
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North America to Hold Highest Market Share
- North America holds the highest market share. The region is among the lead innovators and pioneers in adopting new technologies such as 5G, autonomous driving, IoT, blockchain, gaming, and artificial intelligence (AI), among others. This trend will likely fuel the region's adoption of function as a service.
- As more communication service providers (CSPs) decide to deliver their 5G services in collaboration with hyper-scale cloud providers, a hybrid and multi-cloud future is quickly developing. The significant growth in data consumption is further boosting the 5G technology, thereby contributing to the market growth rate.
- Through collaborations with hyper-scale cloud providers (HCPs), communication service providers (CSPs) are growing their cloud infrastructures and are increasingly implementing a hybrid and multi-cloud strategy.
- Over the last two decades, IBM and AT&T have collaborated on innovations and supported enterprise clients' transformation. The two organizations announced intentions to demonstrate the possibilities of edge computing and 5G wireless networking for digital transformation. In February last year, AT&T and IBM launched virtual environments that allow business clients to physically experience the power of combining IBM hybrid cloud and AI technologies with AT&T connection.
- The growth of new business insights contributes to expanding the market in the United States as many data sources increase. FaaS can also dramatically boost computing performance and improve results that directly strengthen business performance. Furthermore, the rise in demand for business agility and flexibility is also increasing the market demand in the region.
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