AI Set to Transform the Cloud Computing Market
The Asia Cloud Computing Association (ACCA) has predicted that the cloud market will undergo a huge transformation in the near future with Artificial Intelligence (AI) likely to play a key role.
ACCA Chairman Bernie Trudel is of the opinion that though the cloud-based AI market is only worth 1 percent of the global market for cloud computing at present, with a year-on-year growth rate of 52 percent, it will rise to 10 percent of the total market by 2025. Trudel was addressing the Cloud Expo Asia conference in Singapore this month and covered the industry trends on cloud computing.
A study commissioned by a global leader in cloud computing has inferred that both AI and cloud will not just be essential but also interdependent, with over three-fifths of the early adopters of the technology believing that AI is of great importance to their organizational strategy and success.
On similar lines, 90 percent of the early adopters acknowledge the importance of cloud services in AI initiatives. A majority of the respondents use Software as a Service (SaaS) and Platform as a Service (PaaS) to develop and deliver AI solutions.
Premier market intelligence firm IDC has also predicted an increasing growth for the AI software platforms. David Schubmehl, Research Director at IDC said that, “IDC forecasts the overall cognitive/AI software platforms market to grow significantly through 2021, exceeding $8 billion in revenue, with a CAGR exceeding 39 percent.”
IDC Chief Analyst Frank Gens has noted that, “Customers are shifting to a ‘cloud first’ strategy for updating/replacing traditional systems and to ‘cloud only’ when developing their next-generation competitive advantage systems and services.” He also suggested that without the cloud as the foundation, none of the 3rd Platform technologies such as big data and analytics, Internet of Things (IoT), and cognitive/AI technologies are possible.
Tech experts the world over are near unanimous in their opinion that AI capabilities will vastly improve with the ever-increasing development of cloud technology.