Professional Cloud Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Professional Cloud Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The professional cloud services market was valued at USD 21.51billion in 2020 and is expected to reach a value of USD 57.54 billion by 2026, at a CAGR of 17.76 %, during the forecast period, 2021 - 2026. The increase in the use of artificial intelligence (AI) with a growing focus on digital transformation initiatives is expected to provide growth opportunities for the cloud services market

Key Highlights

• Moreover, the increase in the service-oriented economy is one of the major factors for the growth of the professional cloud services market. This was supported by cloud computing which helps in database management with reduced cost and those data can be accessed from anywhere.
• Furthermore, in healthcare, the need is 24*7 and this industry provides lots of data which needs to be handled for the benefit of the patients. With cloud services, data can be shared among the medical service providers without ease which will provide healthcare solutions to patients. This is supported by AI and machine learning coming with cloud service because they reduce the time taken by a healthcare professional to analyze the data and give an optimum solution to patients.
• For instance, in January 2019, Walgreens Boots Alliance Inc. and Microsoft Corp. joined hands to develop new health care delivery models, technology, and retail innovations to advance and improve the future of health care. The companies will focus on connecting WBA stores and health information systems to people wherever they are through their digital devices. This will further work with the patients’ health care providers and the companies which will proactively engage their patients to improve medication adherence, reduce emergency room visits, and decrease hospital readmissions
• However, the lack of skilled professionals and an increase in the number of cyber attacks year on year is acting as hurdles for the growth of the cloud market.

Key Market TrendsHybrid Cloud is Expected to Have High Growth in the Market

• Hybrid cloud is a combination of a public cloud provider, such as Google cloud, Amazon web services with a private cloud, i.e., designed to be used by a single organization. By allowing workloads to move between public and private clouds, as computing needs and costs change, hybrid cloud has led businesses to achieve greater flexibility and more data deployment options.
• Currently, many organizations of any size, be it small or large are transforming from traditional to digital mode 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 Cloud and all are driven by the growth in digitization.
• Moreover, Cisco predicted that by 2021, 73% of the cloud workloads and compute instances will be in public cloud data centers, up from 58% in 2016 (CAGR of 27.5% from 2016 to 2021). This huge growth is going to be a catalyst for the hybrid cloud services market.

Asia-Pacific to Witness the Fastest Growth Rate Over the Forecast Period

• Asia-Pacific is going to witness the highest growth in the professional cloud services market, owing to the presence of the two largest economies of the world i.e., India and China. The economies of both nations are growing and China has experienced an explosive growth in its industrial sector, whereas India’s growth has been fueled by the expansion of service-producing industries.
• According to Asia cloud computing, international connectivity has increased by 63% year-on-year, close to 2016’s 62%. Emerging markets took the lead in terms of growth. India, China, Indonesia, and Vietnam all saw per-user speeds grow above 100%. APAC economies also have a slight advantage in terms of cloud regulation. This is the outcome of recent steps to strengthen privacy and intellectual property frameworks.
• For instance, Japan is hosting Olympics 2020 and they have pledged to provide 5G coverage with a range of interconnected devices. This movement is creating opportunities for the cloud services market.

Competitive Landscape

The professional cloud services market is very competitive because of the presence of many major players like Cisco Systems Inc., Hewlett-Packard Company, Microsoft Corporation, Dell EMC, Fujitsu Limited, among others. Product launches, high expense on research and development, partnerships and acquisitions are the prime growth strategies adopted by these companies to sustain the intense competition in the market.

• September 2018 - Microsoft announced the general availability of Azure Data Box, a physical box which organizations can order, fill up, and then return to Redmond for it to be uploaded to an Azure environment. As more and more enterprise data is being transferred to the cloud, sometimes this process can break the network's back - which calls for less virtual and more physical solutions. This is reduced by Azure Data Box.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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