Market Trends of Professional Cloud Services Industry
This section covers the major market trends shaping the Professional Cloud Services Market according to our research experts:
Hybrid Cloud is Expected to Have High Growth in the Market
- A hybrid cloud is an overall combination of a public cloud provider, such as Google Cloud or Amazon Web Services, with a private cloud, i.e., one designed to be used by a single organization. The hybrid cloud has given businesses more flexibility and more ways to deploy data by letting workloads move between public and private clouds as their computing needs and costs change.
- Currently, many organizations of any size, be they small or large, are transforming from traditional to digital modes of business. This transformation is creating a market for hybrid cloud because of the benefits provided, like reduced total cost of ownership (TCO), high security, flexibility, and agility. IBM stated that 89% of IT leaders expect to move business-critical workloads to the cloud, and the growth in digitization drives all of this.
- Various firms are launching significant offerings based on cloud services. For instance, in August last year, Ridge, an edge cloud provider, introduced a new comprehensive cloud solution, Hybrid Cloud. Ridge stated that its distributed cloud architecture enables businesses to unify business-critical apps across all their locations, whether they are managed or on-premises locations run by Ridge. With the help of this solution, businesses can thus manage their workloads through a single portal, providing companies with a cohesive cloud experience across all public and private locations.
- As of August last year, around 5,000 services and products were offered on the Google Cloud Marketplace, of which about 1,230 belonged to the virtual machine category. The Google Cloud Marketplace is primarily a digital catalog on which independent software vendors can list their total services and products. This allows Google Cloud customers to pick from various solutions that run on Google Cloud to cater to their various specific needs.
- As per IBM, with hybrid platforms as the central strategy for supporting key application workloads, organizations and firms are widely reaping the business benefits of improved workload efficiency. In the last year, the most prevalent advantage of running applications on a hybrid cloud, as reported by IT leaders, was the overall ability to optimize business continuity and disaster recovery.
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North America to Have the Largest Market Share Over the Forecast Period
- North America holds a significant portion of the professional cloud services market share. It is primarily due to the presence of large firms in the region. Some key firms include Cisco Systems, Inc., Microsoft Corporation, Oracle Corporation, Hewlett-Packard Company, Dell EMC, and many others.
- North American companies are actively involved in making strategic mergers and acquisitions. For instance, in May last year, American technology giant IBM declared that it had signed a Strategic Collaboration Agreement (SCA) with Amazon Web Services, Inc. (AWS), with plans to deliver a broad array of its software catalog as Software-as-a-Service (SaaS) on AWS. Building on IBM Software being available as-a-Service (aaS) on IBM Cloud, this first-of-its-kind agreement between IBM and AWS would offer customers and clients easy and quick access to IBM Software that spans data, automation, and AI, security, and sustainability capabilities built on Red Hat OpenShift Service on AWS (ROSA) and runs cloud-native on AWS.
- Companies in the region are introducing new products or services to gain a competitive advantage. For instance, in June last year, Hewlett Packard Enterprise announced that Eclit had selected the HPE GreenLake edge-to-cloud platform to introduce a new cloud portfolio and expand its overall infrastructure as a service and managed IT services offerings. The comprehensive service suite allows customers to deploy custom-built solutions with a scalable, agile, and pay-per-use cloud experience across all workloads.
- Canadian companies are also increasingly adopting the BYOD trend. With the increase in the adoption of tablets and smartphones for accessing business-critical information, the growth of BYOD in the country is expected to increase, which, in turn, is expected to impact the professional cloud services market during the forecast period.
Moreover, the Government of Canada has a "cloud-first" strategy, whereby cloud services are identified and evaluated as the principal delivery option when initiating information technology investments, initiatives, strategies, and projects. The cloud will also allow the government of Canada to harness the innovation of private-sector providers to make its information technology more agile. These kinds of projects are likely to give the market a lot of chances to make money, since this model allows private cloud security and public cloud flexibility.
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