COVID-19 As A Catalyst for Cloud: Global Cloud Spending To Surpass USD 1 Trillion!
Amid the coronavirus pandemic, the world is witnessing a rapid digital transformation of organizations, with innovative business models becoming the new normal.
The technology solution that has gained immense prominence undoubtedly is cloud-computing, driving its adoption and ensuring seamless performance during remote working.
According to IDC’s Worldwide Whole Cloud Forecast, 2020–2024, the global cloud computing services market spending is expected to surpass USD 1 trillion in 2024.
The demand for various cloud-related or whole cloud opportunities is anticipated to propel at a double-digit Compound Annual Growth Rate (CAGR) of 15.7% during the forecast period 2020-24.
“By the end of 2021, based on lessons learned in the pandemic, most enterprises will adopt a mechanism to accelerate their move to cloud-centric digital infrastructure and application services twice as fast as before the pandemic,” said Rick Villars, Group Vice President, Worldwide Research at IDC.
“Spending on cloud services, the hardware and software components underpinning cloud services, and the professional and managed services opportunities around cloud services will surpass USD 1 trillion in 2024,” he added.
According to the IDC report, the public and private cloud services category is considered the largest revenue contributor to the cloud market. It is expected to grow at a CAGR of 21.0%, contributing over 60% of the global cloud revenues by 2024.
The second-largest category, cloud-related professional and management services, is anticipated to grow at a CAGR of 8.3% during the forecast period. The accelerated adoption of automation solutions for cloud migrations is considered the prime factor for the slower uptick.
Likewise, the category that includes hardware and software used by enterprises and cloud service providers is expected to grow at a CAGR of 11.1% during the aforementioned forecast period.
The IDC report stated that cloud adoption enables organizations to move IT to new digital transformation initiatives that lead to new business revenues and bring competitive advantage.
Hybrid cloud is considered the main driving factor for successful digital transformation efforts. It defines an IT investment strategy, an IT architectural approach, and an IT staffing model that enables enterprises to achieve the optimal balance across dimensions without compromising performance, reliability, and control.
“Cloud in all its permutations, including hardware, software, services, as well as public, private, hybrid, and multi cloud models, will play ever greater, and even dominant, roles across the IT industry for the foreseeable future,” said Villars.