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:

  • Hardware
  • Software
  • Services

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

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

On the basis of organization, the global public cloud market is segmented into:

  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises

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

  • Discrete Manufacturing
  • Professional Services
  • Banking
  • Process Manufacturing
  • Retail
  • Others

On the basis of Region, the global public cloud market is segmented into:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

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.

Key Developments:

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.


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.

Data Triangulation Methodology | Coherent Market Insights

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.

Market Analysis | Coherent Market Insights

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