Cloud computing refers to the availability of data storage and computing services over the Internet. In cloud computing, a network of remote servers hosted on the internet are used to store, process, and manage data. Users can store their files and applications on these remote servers and then access the data or information stored via the internet. Since the data being accessed is stored in the cloud, it is called cloud computing.
There has been a rapid proliferation of cloud computing platforms and applications across various industry verticals, mainly due to the fact that cloud computing services help companies avoid or minimize their up-front IT infrastructure costs. Apart from cost benefits, it makes it possible to access applications from all devices in the network from any location and at any time. A cloud can be public, private, or hybrid.
The global cloud computing market size is expected to reach USD 623.3 billion by 2023, from USD 272 billion in 2018. The market will grow at a CAGR of 18% during this period. The major driver for the growth of cloud computing is that it is cost-effective, which allows organizations to save costs on up-front IT infrastructures.
Apart from this, increased automation and agility, need to fulfil customer expectations, and increased return on investments are some other factors that will propel the growth of the global cloud computing market. Further, the number of small and medium enterprises is growing across the world, which will eventually lead to increased adoption of cloud computing services.
However, data security is a major concern for companies providing cloud computing services. Many enterprises and organizations feel that storing their data in in-house data centres is more secure than storing in the cloud. This can hinder the growth of the market to some extent.
In terms of adoption of cloud computing services, North America is the most mature market and is therefore, going to hold a large market share. However, in the coming years, the Asia-Pacific region is expected to offer lucrative growth opportunities in cloud computing. The Asia-Pacific market is also predicted to exhibit the highest growth rate in the coming years, mainly due to the availability of skilled workforce, technological advancements, and the increasing number of small and medium enterprises in the region.
The major companies operating in the global cloud computing market are, AWS (US), Microsoft (US), Google (US), Adobe (US), Alibaba (China), IBM (US), Oracle (US), SAP (Germany), VMware (US), Rackspace (US), Salesforce (US), Verizon (US), CenturyLink (US), Fujitsu (Japan), and NTT Communications (Japan).