bining data from Gartner and the

Combining data from Gartner and the providers respective revenue reports. Of course, there is much more nuance in cloud growth, especially since so many businesses and organizations around the world have adopted the work from home model, which relies heavily on web-based public cloud services. However, there are some common reasons and natural evolutions which lead a company to make the transition. One of the original motivating factors to move to the cloud has been reducing costs. The market is still emerging and the growth trends are linear instead of the exponential rise seen in some of the as a Service offerings. Heres how the projected market share looks like: In terms of consumer cloud consumption trends: (Read our comparison of the Big 3 cloud providers.). With the cloud provider responsible for any upgrades should those compliance requirements change. With a market share at 15.5%, Gartner estimates Azure annual revenues of $5 billion and a growth of 60.9% in 2018, boosting Azure market share. Before exploring the cloud market and the cloud market share, first you must understand the three main types of cloud computing. Instead of installing the software application on your local device, you access the providers application using the web or an API. Driving the majority of vendors to focus on a single fit-for-purpose PaaS offering over a multipurpose solution. Instant help from WordPress hosting experts, 24/7. Manufacturing ($19.7 billion), professional services ($18.1 billion), and banking ($16.7 billion) are the leading industry verticals in terms of public cloud spending. You can manage your preferences at any time. Performance & Tracking Cookies - We use our own and 3rd party analytics and targeting cookies to collect and process certain analytics data, including to compile statistics and analytics about your use of and interaction with the Site along with other Site traffic, usage, and trend data which is then used to target relevant content and ads on the Site. Its also important to recognize that initial investments in cloud migration and optimization will create a negative ROI in the short term. These are used to let you login and to and ensure site security. These collaborative systems offer backup and version control, giving your employees access to the same information whilst maintaining data accuracy and consistency. The Leading Resource on Next-Generation IT Infrastructure. Especially when you consider Gartneris projecting worldwide IT spending of $3.79 trillion in 2019. Gartner is a leading technology analyst firm who tracks U.S. and worldwide spending of a variety of technology. Current users saw performance improvements from 30% all the way up to 200%. Talk with our experts by launching a chat in the MyKinsta dashboard. Here are the latest cloud market share stats and associated trends, which may help MSPs and IT consulting firms to understand next steps and opportunities in the managed cloud services market. Incredibly, Gartner reports only 10 of the existing 360 PaaS vendors are able to offer 10 or more of the 22 services outlined in the report. Microsoft CEO Satya Nadella expressed similar confidence in the future of the cloud. This growth is due in part because the cloud supports the scalability andcomposabilitythat advanced technologies and applications require, while also enabling enterprises to address emerging needs such as sovereignty, data integration, and enhanced customer experience, Nag explained. 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Other drivers, though, are awareness and openness to new ways of working. Each with its own pricing schedule and thousands of configuration options that change the price. In 2019, the SaaS vendor landscape is largely split into three camps traditional enterprise software vendors, born-in-the-cloud vendors and large IT vendors looking to expand in the market: This camp includes the big names you would expect like Microsoft, SAP, Oracle and IBM. Moving to the cloud places the resource demands of security in the hands of the provider, freeing your team to focus on other areas. Asana, an enterprise productivity SaaS solution, IPOd at $19 billion in September 2020. In percentage terms, DaaS will see the highest growth at 67.7% followed by Infrastructure as a Service (IaaS) at 38.5%. Using this base level configuration, it compares and contrasts the providers different services with a price per month. Taking a detailed look at the segments making up the cloud market, public cloud solutions make up the majority. As leading cloud technology providers champion the use of renewable energy in their data centers. Necessary and Functional Cookies - These cookies are necessary for the Site to function and cannot be switched off in our systems. Data center assets are critical for the sustained growth of public cloud service organizations. Software as a Service is the most mature public cloud market, showing healthy growth. The next ten vendors account for another 26% of the SaaS market, with a reported 26% growth. Much of the expansion includes MSP and cloud consulting acquisitions. In todays market, even limited downtimes can impact significantly on your productivity, revenue, and brand reputation. Please let us know by emailing blogs@bmc.com. Or the thousands more companies that run services on those cloudsthe IaaS, SaaS, PaaS providers? To make this a reality, youll need to have the in-depth knowledge to navigate the many options available. Take a look at the following research trends: While all of these trends present cloud computing as essential to running a successful technology-driven business organization, the returns on cloud investments are still subject to a few critical challenges: successful cloud migration, cybersecurity, cloud resource optimization, people and change management, and long-term vision for cloud-enabled digital transformation. The majority of as a service offerings run on someone elses cloud, no matter if theyre a brand-new startup or a global enterprise. Putting the market on an annual run rate in excess of $100 billion. At present, there are only a handful of vendors able to compete in this space. Kinsta and WordPress are registered trademarks. Leading the way is Microsoft, with a 17% market share and impressive annual growth of 34%. Kinsta spoiled me so bad that I demand that level of service from every provider now. If cloud growth in 2021 must be summed up in a single stat, its this: Gartner predicts that the worldwide public cloud revenue will grow by 23% in 2021 for a total revenue close to $332.2 billion U.S., up from $270 billion from last year. Many organizations already depend on the providers enterprise software and other services, positioning Azure to capture opportunities across nearly every vertical market, according to the analyst firm. By end of 2022, the growth rate increase even further, expecting to reach $145 billion in revenue. 5 with tempered growth of 56.3% after the last two years of more than 200% growth. They include the likes of Zendesk, Workday, and Atlassian. Carving a niche for themselves in the market with services like Google Workspace and Ciscos collaboration apps. A lack of quality and inconsistent reporting can have a huge impact on the success of your business. Lets look at some of the interesting cloud growth trends expected in 2021 and beyond: The next category to look at for cloud growth trends are the cloud providers themselves. Lets take a closer look at the top 5 public cloud infrastructure providers infrastructure in 2019. Similarly, foregoing some proportion of visibility and control into third-party cloud infrastructure doesnt compromise the security posture considering the stringent compliance regulations and sophisticated security capabilities designed to protect customer data in the cloud. As Microsoft continues to mask Azure revenue in a combined commercial cloud business. The tool allows you to select basic specifications such as CPU power, RAM, storage requirements, and operating systems. These vendors are Amazon (47.8%), Microsoft (15.5%), Alibaba (7.7%), Google (4.0%) and IBM (1.8%). Credo founder & CEO John Doherty shares actionable tips for growing a business, along with solid tactics on automation, playbooks, & more. A figure expected to double by 2022. Tracking cloud growth isnt easy: does cloud mean the few companies that actually provide and drive the cloudthe cloud service providers? IaaS is reported as the second largest spending category and is the fastest growing with a projected five-year CAGR of 32.0%. These vendors include Cisco, Google, IBM, ServiceNow, and Workday. Cornershop Creative now moved several high-trafficked sites to Kinsta hosting, collectively handling millions of visits per month. Investing time here will ensure you a cloud setup customized to your businesss needs at the most efficient (not cheapest) cost. Your email address will not be published. No matter how in control you are of business processes, your systems will eventually let you down. Cloud computing also provides the benefit of remote accessibility, helping cut down on commuter related emissions from your employees. For IaaS and PaaS use cases, where organizations are ultimately responsible for managing and securing their own IT workloads, the growth in cloud management and security services market suggests that the industry is responding with effective solutions that help organizations maximize the value potential of their public cloud investments. Its as if the entire industry woke up and said, yes, now is the time to retrofit my broadband networks for the next 10 to 15 years," analyst Jeff Heynen said. Data compliance is the cornerstone of business operations if youre in industries like financial services and healthcare. Kinsta was one of the first managed WordPress Hosting companies to exclusively use GCP to power its entire WordPress hosting infrastructure (back in 2016), and now many competitors have followed suit. 2) grew at a much faster rate than the longstanding cloud giant, according to Gartner, Inc. In this article, well round up the most important cloud growth storylines in 2021 by looking at: As a service offerings are the easiest ways for organizations to get involved in the cloud. Among the factoids to note, according to Canalys: Amid those growth rates, ChannelE2E is seeing more and more of the Top 250 Public Cloud MSPs extend from one cloud (say, AWS) to support multi-cloud capabilities (say, Azure and/or Google Cloud). Especially with the recent advancements and availability of BI tools, supported by AI and machine learning. Unsurprisingly, these mega-vendors include Amazon, SAP, Google, Oracle, Microsoft, Salesforce and IBM. SaaS is all the services and software you run online, trading CapEx license spending for OpEx subscription costs. According to Gartner, IBM owns a 1.8% market share with annual revenues of $577 million and a growth of 24.% in 2018. At the top of the ever-growing market sits AWS with revenue of $35.4 billion in 2021 and 38.9% market share. Theres a lot to consider, Cloud Infrastructure: A Brief Introduction, What Is DBaaS? Now, thats changed. In the US, weve been following the ongoing saga of which cloud provider will service the Department of Defense cloud migrations. You can also subscribe without commenting. Cloud computing has grown into a big, complex universe. Making a play for the SaaS market, this group includes the likes of Google and Cisco. Datacenter industry is growing at a CAGR of 9.9%, from $244.74 billion in 2019 to $432 billion in 2025. Find out how moving to Kinsta could save you $2,400+ a year on site costs. Well cover these benefits in more detail in the next section. Protecting it all with your own firewall and security solutions. Leading vendors like AWS, Azure, and Google Cloud Platform offer hundreds of different services. A few examples include scaling your compute to changing demands, reducing resources spent managing hardware and software, or gaining greater insight to your data. Reducing costs via a pay-as-you-go model. What type of cloud market share do Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform each hold and what are the implications for the Top 250 Public Cloud MSPs? (Deep dive into SaaS growth stats & trends.). Of the six cloud categories Gartner tracks, BPaaS is one of the smallest players, with its growth barely budging over the next few years, especially relative to the other categories. Many provide huge committed use discounts if you are willing to purchase the cloud computing time upfront. TeleGeography found MPLS and access loops connecting to MPLS points of presence make up 60% of the market for large multinational enterprise WANs. They have a huge base of existing on-premises consumers which they will be looking to convert to SaaS-based subscription models. BMC works with 86% of the Forbes Global 50 and customers and partners around the world to create their future. In 2019, Microsoft looks set to claim AWS market share, reporting H1 YoY growth of 70% in Azure revenues. The cloud computing market is huge. Opting out of these cookies may impact some minor site functions. Gartner predicts that the SaaS cloud application services market will consistently constitute at least one-third of the total public cloud revenue share for the next four years: Cloud management and security services is the next category. Get a personalized demo of our powerful dashboard and hosting features. Focusing your IT team on projects that create revenue, rather than locked in a server room managing on-premises infrastructure. Cloud infrastructure market share for Amazon Web Services (AWS), Microsoft Azure & Google Cloud Platform, according to Canalys. Amazon Web Services (AWS) maintained its domination of the global public cloud services market in terms of market share and revenue growth in 2021. Cloud vendors, service providers and startup firms are gaining exponentially rising interest and popularity among investors, businesses and consumers. However, the growth figures should be viewed with the following caveat: cloud computing resources are drastically oversubscribed, underutilized and therefore, wasted. Today, in many situations, cloud computing is a secure alternative. Emerging markets such as Southeast Asia are still at a nascent stage as compared to the Nordic region and the US. Driven by a five-year compound annual growth rate (CAGR). 67% of the organizations operate cloud-based infrastructure environments. A hybrid cloud is where you opt to use a mix of both public and private cloud solutions. PaaS is an offering of cloud computing where the provider gives you access to a cloud environment in which to develop, manage, and host applications. When a vendor announces an end-of-life event, its an opportunity for you to consider alternative solutions. Without huge investment, the right cloud provider can quickly offer powerful compute and storage capabilities with built-in analytics to process, analyze, and find value in your data. Followed closely by Adobe, with a 10% SaaS market share and an annual growth of 29%. Now its your turn: whats your experience with cloud services? Tell us in the comment section below! Of course, when calculating the cost of cloud, its always important to consider the indirect cost savings for your IT department. Salesforce comes next with 12% SaaS market share and annual growth of 21%. A SaaS subscription, or the lift-and-shift of an application into the public cloud, can provide significant cost savings versus costly on-premises software licenses and hardware upgrades. Software as a service (SaaS) is the most successful of these by far in the first decade of true cloud services as its forecasted to reach $122.6 billion by the end of this year. However, the narrative surrounding cloud being cheaper than on-premises solutions is changing. Cloud computing can simplify and improve your businesss collaboration. But rivals Google (No. Though its a smaller player, its growth is solid, nearly 30% growth from 2020 to 2022. A 31.3% growth from $24.7 billion in 2017. This recent chart indicates six leading as a service tracks and their forecast revenue. Thankfully, reports from leading research agencies like Gartner and IDC help to give us some deeper insight. Click here to learn more. The calculator gives you the full picture of the IaaS and PaaS offering, allowing you to create highly personalized quotes, representative of your deployment needs. Well also help you to discover how and why enterprises are moving to the cloud, the associated benefits, and the costs involved. Cloud computing has grown into a vast and complex ecosystem of technologies, products, and services. The service is hosted in third-party datacenters and delivered over the Internet on a subscription-based pricing model. We also try to be at that level with our SaaS tool support. Regional cloud ecosystemsare becoming increasingly important amidst growing geopolitical fragmentation and emerging regulatory and compliance requirements, presenting an opportunity for providers with a strong regional presence, Nag added. Supporting remote working and keeping your employees connected and productive, even when they are on the move. Costs can quickly mount if youre unable to meet business demand or end up paying on on-premises services which are largely underutilized. 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Formerly the managing editor of BMC Blogs, you can reach her on LinkedIn or at chrissykidd.com. Many businesses have contracts with private data centers, hardware, and software providers that must be periodically renewed. Learn more about BMC . Boost your WordPress sites speed up to 200% with our flexible Google Cloud powered infrastructure. As weve shown in this article, cloud growth shows no signs of stopping. Today, we are going to take a deep dive and demystify the cloud market. Add to this a lack of transparency in their report breakdowns, and its easy to see why getting a true picture of the market is so challenging. Allowing you to decommission old licenses and hardware. By submitting this form: You agree to the processing of the submitted personal data in accordance with Kinsta's Privacy Policy, including the transfer of data to the United States. I would have loved a bit of coverage of RDS (Remote Database Service) that is the core to many businesses. Renowned primarily for its hybrid cloud services, IBM is set to shake up the market in 2019 having acquired fellow IaaS provider Red Hat for $34 billion. Surveys by a variety of research organizations point to a common trend: the combined spending of SaaS, PaaS, and IaaS models is growing exponentially. The technology and business model characterizing high scalability and innovation has driven investor interest, particularly in the cloud infrastructure services segment that is a necessary enabler to all SaaS solutions in the consumer and enterprise IT markets. Each type has its own distinct range of services and cloud providers that make up the market. A 24% growth on the previous year. Get premium content from an award-winning WordPress hosting platform, Log in to MyKinsta or take a sneak peek with a demo account. Every businesss decision to move to the cloud is unique. In 2021 the global public cloud market grew 41.4% to total $90.9 billion, up from $64.3 billion in 2020, with five main cloud service providers accounting for 80% of the market: AWS, Microsoft, Alibaba, Google, and Huawei. No easy task, as the pricing schemes offered by public cloud vendors is anything but simple. Its more likely that theseprojectsare going to accelerate companies digital transformations and increase demand forthe cloudgiants services, he touted. New data from the Synergy Research Group, across seven key cloud service and infrastructure market segments, operators, and vendors reports revenues in excess of $150 billion for the first half of 2019. These technology giants continue to dominate the market share across all segments. In fact, more than40 percent of MSSP Alerts Top 250 MSSP for 2021 survey participants leverage CSPM to safeguard their cloud customer workloads. One of the key benefits of cloud services is scalability. If you operate on-premises solutions, the evolution and continuing management of compliance regulations can present a significant resource challenge. For this example, Ive input the following setup: After comparing and contrasting a range of cloud hosting setups, Google Cloud Platform is consistently the most economical option. Tell us about your website or project. As the current SaaS market only accounts for approximately 20% of total enterprise software spending. Moreover, smaller consultants, resellers, service providers and distributors are pursuing similar strategies as mid-market and SMB customers also demand support with cloud adoption, Canalys added. To simplify the price comparison weve used Cloudorado. The cloud application and infrastructure services will grow experience significant growth between 2020 and 2021, moving up to a solid third place among these six cloud categories. According to Gartner, the market is dominated by five vendors who account for nearly 80% of worldwide IaaS cloud market share in 2018. This can include the time your business saves not having to carry out software updates, manage failing hardware, or maintaining compliance. Increasingly, businesses are using these naturally occurring events to move from on-premises to cloud-based solutions. IaaS was one of the original as a Service opportunities, but one that didnt live up to its early hype. Overall, Microsofts Q1and Q2combined commercial cloud business revenue is now reported to be $20.6 billion, a 40% growth on H1 2018. Dollars) (Source). Of course, these costs and setups are just scratching the surface. In fact, a majority of industry verticals average more than 10 cloud vendor subscriptions at every organization. Within the providers infrastructure, you run your own platforms and applications. Muhammad Raza is a Stockholm-based technology consultant working with leading startups and Fortune 500 firms on thought leadership branding projects across DevOps, Cloud, Security and IoT. Here is the big growth we expect of the cloud in terms of spending: the public cloud services market will continue to dominate the IT services industry owing to the proliferation of low-cost SaaS solutions that draw workers away from pricey on-prem software licenses. Microsoft also has a handy guide for AWS to Azure services comparison, to help you compare their services like for like. Well explain the different cloud services, identify the leading cloud providers, and explore their cloud market share in 2022. Datacenter facilities consume 3% of the global energy consumption and is soon expected to reach 8% mark. Lets take a look at the most common reasons that could lead your business to migrate a cloud-based ecosystem: One of the most common reasons to make the transition is the wide range of benefits offered by cloud computing. The APAC region is leading the spending charts, replacing the North America region now at second, followed by EMEA at third. By the end of 2022, the US will have leapfrogged all other countries in terms of cloud adoptionby several years! Within each of these service categories, you have the option of public, private, hybrid cloud solutions: A private cloud is where you host on your own data center or intranet. To help you conceptualize some of the costs of a cloud deployment, weve compared the leading IaaS and PaaS providers: AWS, Azure, and Google Cloud Platform looking at a combined public cloud hosting deployment of servers and storage. Lastly is Oracle, also taking a 6% market share and reporting annual growth of 29%. Gartner says this growth is a result of increased adoption of traditional enterprise workloads along with Googles prowess in artificial intelligence and Kubernetes container tech. As big as the cloud market has become, there is massive scope for expansion. As consumers, navigating and understanding this cloud ecosystem is increasingly difficult. Their most recent research forecasts six key types of cloud services, which well look at in depth below the table: Worldwide public cloud services: end-user spending forecast (Millions of U.S. Its not surprising when you think about how many benefits come with cloud computing. One of the key motivations for many to move to cloud is the associated cost savings both direct and indirect. ChannelE2E: Technology News for MSPs & Channel Partners, Microsoft Intelligent Security Association, Here are the latest MSSPs to join Microsoft MISA, 40 percent of MSSP Alerts Top 250 MSSP for 2021, MSP 250: Top 250 Public Cloud MSPs for AWS, Microsoft Azure and Google, Technology Conference Calendar: Channel Partner and MSP Events, M&A Deal List: Technology Mergers and Acquisitions. This year could see the Google overtake Alibaba, with Google CEO Sundar Pichai reporting cloud service revenues on track for $8 billion. Moreover, global systems integrators including Accenture, Atos, Deloitte, HCL Technologies, TCS, Kyndryl, Tech Mahindra and Wipro, are building practices with tens of thousands of cloud engineers and consultants, Canalys notes.

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