The cloud is still growing, but it’s not as astronomical as it was last year. This could be due to the scrutiny companies are putting on their tech budgets, causing them to cut back a bit.
The Synergy Research report indicates that we may be coming out of the recent doldrums, but this does not mean that cloud infrastructure revenue growth will immediately return to where it was before. The shifting trends in the market suggest that Cloud Infrastructure as a Service (IaaS) might be benefiting more from the current cost-cutting cycle than private cloud, and this could be a sign that businesses are starting to see value in moving their technology investments over to the public cloud.
Leading organizations are carefully reviewing their spending on cloud services due to the current economy, but the global market value continues to grow. These companies anticipate a stronger economy in the near future, which will lead to increased spending on cloud services.
The global cloud market is estimated to reach $334.3 billion by 2024, according to MarketsandMarkets’ recent report “Global Cloud Migration Continues To Traverse Dynamic Environments”. This growth can be attributed to the various benefits of cloud adoption, such as reduction in infrastructure costs, improved agility and scalability, and increased security and privacy.
As the cloud industry has seen a slower growth rate over the past few years, it feels worse in comparison to industries such as hospitality and retail that are doing well. With companies like Airbnband Lyft emerging as dominant players in the industry, it is important for them to continue to grow at a healthy pace in order to maintain their position. If they can keep growing at around 21-25% each year, it will definitely alleviate some of the pressure on other providers.
amazons cloud revenue growth looks to have slowed for the first time in years, raising questions about the future longevity of AWS. While this could potentially mean that Amazon’s monopoly is starting to break, it remains to be seen how long or if this slump will last.
Microsoft was able to keep pace with Amazon’s cloud growth because they offer a more comprehensive product. Google Cloud, on the other hand, grew more quickly due to their lower cost structure and profit making potential. As the cloud market continues to tighten, it will be interesting to see which companies are able to maintain their lead.
What competitive advantages do the big three have that differentiate them from the rest of the pack? Microsoft has a vast software library and market share in enterprise technology. Google has a strong search engine and expanding advertisement business, as well as building autonomous vehicles. Amazon has an overwhelming lead when it comes to e-commerce, with its wide selection of products and solid customer service.
AWS continues to lead the market in terms of market share and revenue. Microsoft stabilization from the prior quarter is a good sign, as they have been slowly but surely increasing their share of the cloud marketshare. However, Google Cloud’s growth is notable given its relatively new presence in the space.
Synergy believes that infrastructure and platform as a service (IaaS), which handles the underlying infrastructure, will be the largest market segment by 2020. The company forecasts that there will be a growth of 35% from 2016 to 2020 for IaaS offerings. This growth is due to the fact that companies are turning to IaaS for cost-effective deployment of their applications, as well as simplifying their IT management by taking advantage of centrally managed services. Host
As the cloud infrastructure market began to experience slowing growth in recent years, several companies have looked to add data-intensive AI workloads as a way to help stabilize the market. This is likely to result in an overall increase in demand over time, which should ensure that the market remains stable.
