Cloud Computing Services – Procurement Best Practices & Sourcing Strategies

DESCRIPTION

Cloud Computing Services Market Global Size:

ELINT Market Research’s recent cloud computing services procurement market research report projects a global market size of $452.9 billion in 2022. Certainly, this promising figure exhibits that multiple industries are rapidly employing cloud computing solutions, which include banking, medicine, financial centers, retail, regulatory, manufacturing, education, and more.

Market Definition:

The cloud computing service providers offer computing services over the internet to consumers. These services typically include SaaS, PaaS, IaaS, etc.; thus users can access these applications at any time and any place without purchasing them since they store all data online on the cloud. Also, cloud computing services provide state-of-the-art data safety to protect from cyberattacks and online data stealing, and ensure consumers that their information is protected in the cloud.

Major Cloud Computing Services Market Drivers:

1. Expanding Need for Scalable IT Solutions –

One of the major drivers contributing to cloud computing market growth is the expanding need for affordable and scalable IT solutions. Thus, businesses are adopting cloud computing technology to leverage affordable cloud-based platforms, without making any initial purchasing investments.

2. Elevated Digital Conversion –

Today’s generation shifting towards digitalization to use different technologies like AI, machine learning, robotics, database management, etc. Hence, cloud service providers are constantly obtaining requests from individuals, who want to use cloud platforms for their needs.

3. Management of Vast Amounts of Data –

Instead of on-premises software, businesses are employing cloud-based solutions to handle large amounts of data, which help them derive insights and make informed decisions.

Cloud Computing Services Market Challenges:

1. Data Protection Concerns-

The prominent challenge among cloud computing service providers is data safety concerns of organizations, since this computing technique stores whole information in the cloud. Hence, this data becomes vulnerable to cyberattacks and online data theft acts.

2. Complicated Cloud Platforms –

Supervising and evaluating data on cloud-based systems requires expertise since these online platforms are relatively complicated. Thus, businesses need to hire professionals to manage these cloud solutions, which costs them additionally.

3. Downtime of Cloud Systems –

As cloud-dependent solutions work completely online, so sometimes they can face downtime due to technical problems, cyber intrusions, and unexpected circumstances. Hence, cloud service suppliers invest in disaster recovery programs, SLAs, etc.

Cloud Computing Services Market Opportunities:

1. Anytime Data Accessibility Assitance –

The foremost opportunity for cloud computing service companies to experience is allowing their consumers to access cloud applications at any time and anywhere since these platforms store all data online on the cloud.

2. Increasing Use of Multi-Cloud Strategy –

Multiple worldwide businesses are adopting a multi-cloud approach, which allows them to collectively use public and private cloud services. This way companies are trying to enhance security measures and obtain high returns.

3. Integration of AI and Machine Learning –

Businesses are integrating machine learning and artificial intelligence technologies into cloud platforms to get cutting-edge insights, predictive analytics, automation, etc., to streamline their daily business operations.

Cloud Computing Services Market Segmentation:

1. Type of Service Model –

One of the key segmenting factors for the cloud computing services market is the types of service models which include SaaS, PaaS, and IaaS. thus, organizations can select any model depending on their particular requirements.

2. Kinds of Deployment Models –

Cloud service providers provide their consumers with distinct deployment models such as public, private, hybrid, and multi-clouds. Hence, this is another prominent segmenting factor for the cloud computing market.

3. Different End-User Industries –

Various end-user industries like medicine, banking, constitution, machinery, IT, e-commerce, etc., employ cloud-based service solutions to their specific business and compliance requirements.

Supplier Market Share in the Cloud Computing Services Market:

Some of the key players hold significant supplier market share in the cloud computing industry; the first one is Amazon Web Services (AWS), which possesses the largest 32% stake. It means this organization fulfills the vast amount of worldwide cloud computing services demands. Some other brand names include Microsoft at 20%, Google at 9%, and other remaining players collectively possess 40% stakes in the cloud computing market.

Key Growth Trends in the Cloud Computing Services Market:

Software as a Service (SaaS) is one of the key growth trends in the cloud computing services market, which provides flexible software solutions to customers so they can use it anytime online. The next prime trend is hybrid cloud, which assists businesses in merging public and private cloud models so they can improve their work flexibility.

Furthermore, cloud computing integration with artificial intelligence (AI) helps in comprehensive data evaluation, automation, differential response, and more. In this list, the next trend is data governance, which helps businesses protect and manage large count of data on the cloud. Moreover, cloud analytics can assist in generating essential insights from extensive datasets, depending on which companies can make informed decisions. Additionally, the application or app development assists developers in efficiently creating and managing software applications using cloud-based systems. Further, the last trend is edge computing in which businesses avoid depending only on centralized cloud servers, and can process data nearer to where it’s induced.

Regional Overview of the Cloud Computing Services Market:

The regional dynamics of the cloud computing services market exhibit distinct numbers for different territories. In this list, the first country is North America which carries a $119.7 billion market size. It implies that, this area has substantial demands for cloud computing services. Additionally, some other countries that are collectively contributing to the cloud computing services sector include APAC with $100.7 billion, Europe with $107.6 billion, and other remaining worldwide nations holding $58.5 billion share in the overall global cloud computing solutions industry.

Leading Suppliers in the Cloud Computing Services Market:

Some of the leading cloud computing services market participants include AWS, Microsoft, Google, IBM, and Alibaba Cloud.