Public Cloud Market, By Services (Business Process Services (BPaaS), Application Infrastructure Services (PaaS), Application Services, Management & Security Services, Systems Infrastructure Services (IaaS), and Advertising), By Organization (Small Enterprises, Medium Enterprises, and Large Enterprises), By End-use Industry (Discrete Manufacturing, Professional Services, Banking, Process Manufacturing, Retail, and Others), and By Region - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2017-2025

Public cloud refers to the standard cloud computing model based service provider that offers virtual machines, storage or applications for general users over the internet, which are either available freely or on pay-per-usage basis. According to Coherent Market Insights’ analysis, public cloud market is projected to witness growth at around 20% over the forecast period of 2017 to 2025, with Amazon, Microsoft, Alibaba, Google, and Rackspace leading the industry space. High scalability, cost savings, agility, simplicity, and better business growth prospects offered by these services is expected to provide huge attraction for organizations, which is expected to drive demand for public cloud.

Systems Infrastructure Services (IaaS) is expected to gain significant traction through the forecast period

Most of the enterprises require cloud infrastructure for enhancing their business operations and for expansion, which requires high initial capital for development of these resources. Moreover, growing volume of data and compute intensive workloads, owing to emergence of enterprise trends such as Bring your own device (BYOD), Choose your own device (CYOD), Internet of Things (IoT), and Artificial Intelligence (AI), is expected to create a conducive environment for growth of the public cloud market. No associated maintenance costs and efforts for infrastructure in conjunction with no requirement of long-term contracts, owing to pay-as-you-go service is expected to propel the market growth.

Public Cloud Market Taxonomy

On the basis of services, the global public cloud market is classified into:

  • Business Process Services (BPaaS)
  • Application Infrastructure Services (PaaS)
  • Application Services
  • Management & Security Services
  • Systems Infrastructure Services (IaaS)
  • Advertising

On the basis of organizations, the global public cloud market is classified into:

  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises

On the basis of end-use industry, the global public cloud market is classified into:

  • Discrete manufacturing
  • Professional services
  • Banking
  • Process manufacturing
  • Retail
  • Others

High demand for these services for financial applications is expected to be factor for growth of the market

Adoption of SaaS offerings such as customer relationship management (CRM), human capital management (HCM), enterprise resource management, and other financial applications is increasing, especially in large enterprises, since the recent past. According to Coherent Market Insights’ research findings, around 45% of large enterprise application adoption in the U.S. comprised of  software-as-a-service or other such solutions in 2016, which is expected to present significant opportunities for public cloud market growth.

Lack of customizability and weak data security are among the major challenges that may restrain the market growth

Clients adopting to such forms of service have no control over infrastructure or data. The data is not secure and lacks integrity. Moreover, service level policies are enforced on the user by the service provider. Owing to large number of consumers sharing the same hardware resources, information security threats are higher and the date is highly vulnerable to security breaches and there are chances of loss of confidential data. Lack of customizability of the services and total reliance of the business operation performance on the internet connectivity are few other challenges are expected to hamper the overall industry growth throughout the forecast period.

The U.S. is expected to continue its dominance in the public cloud market over the forecast period, primarily, owing to increasing inclination of enterprises towards adoption of these solutions, and presence of chief industry participants in the region. Asia Pacific market is expected to register significant growth, owing to increasing business activities, development of infrastructure, and high potential growth prospects in countries such as China, India, Indonesia, and Thailand.

Major players in the global public cloud market include Amazon Web Services (AWS), Salesforce, Microsoft, IBM, Google, CenturyLink, and Verizon Wireless, among few others. The market is highly consolidated, with four major players accounting for over 60% of the public cloud market share.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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