Public cloud refers to the standard cloud computing model-based service provider enabling general users the access to virtual machines, storage or applications over the internet. Public cloud is either available free of cost or on pay-per-usage basis. These services provide high scalability, cost savings, agility, simplicity, and efficient business growth prospects, due to which the demand for public cloud has increased over the past decade and is gaining high traction from various companies.
According to Coherent Market Insights’ analysis, public cloud market is projected to witness growth at the rate of 20% over the forecast period (2017 to 2025), with Amazon, Microsoft, Alibaba, Google, and Rackspace leading the market.
Systems Infrastructure Services (IaaS) is expected to gain significant traction over the forecast period
Increasing number of startups are focusing on business enhancement and expansion, which requires high initial capital for development of these resources. As public cloud offers its services for free or at minimal charges in most cases, the demand for these services is rapidly increasing. Moreover, growing volume of data and computing of 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), are expected to create a conducive environment for growth of the public cloud market. This service is not associated with any maintenance costs, efforts for infrastructure, and does not necessitate long-term contracts, owing to pay-as-you-go service. These benefits, in turn, are expected to propel growth of the public cloud market.
Public Cloud Market Taxonomy
On the basis of component, the global public cloud market is segmented into:
On the basis of services, the global public cloud market is segmented into:
On the basis of organization, the global public cloud market is segmented into:
On the basis of end-use industry, the global public cloud market is segmented into:
On the basis of Region, the global public cloud market is segmented into:
High demand for these services in financial applications is expected to fuel market growth
Growing 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. 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. This in turn, is expected to drive growth of the public cloud market growth.
Lack of customizability and weak data security are major challenges for market growth
Clients adopting such forms of services such as public cloud have no control over infrastructure or data provided by such a public platform. The risks associated with usage of public cloud include lack of data security and integrity. 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, resulting in increased risk of loss of confidential data. Moreover, service level policies are enforced on the user by the service provider. Lack of customizability of the services and total reliance of the business operation performance on the internet connectivity are few other challenges faced by this market, which are expected to hamper growth of the public cloud market.
North America holds the dominant position in the market, with the U.S. being the major growth engine. The region is expected to retain its dominance, owing to increasing inclination of enterprises towards adoption of public cloud solutions, and high presence of chief industry participants in the region. Asia Pacific 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 operating in the global public cloud market include Amazon Web Services (AWS), Salesforce, Microsoft, IBM, Google, CenturyLink, and Verizon Wireless. The market is highly consolidated, with four major players accounting for over 60% of the public cloud market share.
In November 2018, IT services provider Mphasis has acquired Virginia-based cloud technology service provider Stelligent Systems LLC. Stelligent Systems LLC provides development, security and operation solutions on AWS.
In January 2018, Kubernetes launched multicloud 2.0. From multicloud 2.0 user can manage the multiple clusters running on multiple clouds.
In January 2018, Veeam Software acquired N2WS, provider of cloud-native enterprise backup and disaster recovery for Amazon Web Services (AWS). N2WS provides IaaS data protection, a cloud-native backup solution specifically designed for AWS workloads, enabling organizations to back up data and applications.
In October 2017, BT and AWS partners to focus on networking, security and managed services to transform enterprise cloud adoption at scale.
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:
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.
Coherent Market Insights desk research is based on a principle set of research techniques:
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:
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.
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:
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.
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:
The primary research is conducted with the ecosystem players including, but not limited to:
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