CHICAGO, April 27, 2020 /PRNewswire/ -- Post COVID-19, the report "COVID-19 Impact on Cloud Computing Market by Service Type (Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS)), Vertical and Region - Global Forecast to 2021", size is expected to grow from USD 233 billion in 2019 to USD 295 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 12.5% during the forecast period. Over the years, organizations have enhanced the level of innovation; and with the outbreak of COVID-19, a majority of operations have been compromised. This has forced organizations to function in a non-optimized manner, as a result of which they are looking for innovative areas that can improve their revenue by a small percentage.
IT and ITES to witness growth during the forecast period within the global cloud market
Coronavirus has pushed a majority of the IT enterprises to adopt the work from home model. IT and ITES enterprises have enabled mobile workforce, adopting enterprise mobility tools & services. Thus, there is an increased demand for cloud communication and collaboration services across the globe.
Digital productivity and collaboration tool providers such as Microsoft and Zoom are witnessing massive upticks in usage across China, Italy, and the US because of coronavirus. Therefore, there will be continuous growth in the demand for cloud infrastructure services and spending on specialized software, communications equipment, and telecom services. This spending will be focused on remotely working employees and educators, as firms are encouraging employees to work from home, and schools are moving to online courses.
Cloud is helping to tackle disaster recovery situations using distributed cloud IT systems. Owing to the lack of on-site IT personnel amidst the lockdown, enterprises are leveraging cloud capabilities to check, maintain, and monitor their server and storage installations in data centers. Businesses are using the cloud effectively to create resilient and disaster-averse systems anywhere across the globe to cater to a remote workforce and protect data and business application integrity as well. IT enterprises are highly adopting managed data center services to enhance security, avoid network downtime, and achieve operational efficiency. Leading players such as DataBank, along with the help of managed service teams, has started preparing a COVID-19 response plan to assess the continuity of operations. Thus, the increasingly mobile workforce due to lockdowns, and growing need for disaster recovery and security to avoid high network downtime costs have fueled the demand for cloud managed services across the vertical globally.
The energy & utilities vertical is expected to see less growth during the forecast period in the global cloud market
The energy & utilities vertical is in the phase of digital transformation. According to a study, this vertical is expecting all its players to go digital entirely within the next two or three years. The rising need for IT service management and advanced infrastructure is driving this transformation in the energy and utilities vertical.
However, due to the COVID-19 pandemic, countries are locking down to contain the spread of the virus. This has led to a significantly declining usage of energy resources such as oil and gas. Thus, the usage of cloud services for IT service management has also diminished substantially. Additionally, due to disrupted supply chains, production is halted, and therefore, the need for technologies such as smart metering is reducing day-by-day. This has reduced the overall usage of cloud services across the vertical.
Europe to witness the higher impact of COVID-19 during the forecast period within the global cloud market
Post the COVID-19 pandemic, businesses & organizations in Europe are facing significant pressure on revenue and cash flows, which is adversely impacting enterprise IT spend. However, there is a significant positive impact on the cloud market in the region. Amidst the COVID-19 pandemic, due to lockdowns, a majority of the employees are working remotely. Thus, there is an increase in the demand for private cloud networks to improve the internet connectivity and security of vital data. As many employees are transitioning to remote working, there is a sudden surge in demand for collaboration solutions. Additionally, the demand for online shopping and video streaming is gaining traction due to lockdown initiatives in all major economies of Europe. This is driving the spending on cloud, as retailers, broadcasters, and government gateways are scaling up their eCommerce and front-end platforms to deal with the increasing demand.
Enterprise software spending is expected to show weaker growth. IT consulting and professional services market will be impacted adversely due to travel restrictions and project delays. These trends would increase the demand for public cloud services, especially SaaS-based industry-specific applications, including collaboration and other productivity and business continuity tools. The social shift towards online platforms - VOD, social media platform, and cloud gaming - would induce spend on cloud infrastructure and automation/management software.
MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies' revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.
Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the "Growth Engagement Model – GEM". The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write "Attack, avoid and defend" strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.
MarketsandMarkets's flagship competitive intelligence and market research platform, "Knowledge Store" connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.
Contact: Mr. Sanjay Gupta MarketsandMarkets™ INC. 630 Dundee Road Suite 430 Northbrook, IL 60062 USA: +1-888-600-6441 Email: [email protected]