With the pandemic-fueled mass migration to WFH (work from home) and increasing Mobile workforce acceleration, cloud spending went from a very nice growth market to burgeoning accelerated growth. Economic instability triggered by the pandemic is expected to push budget conscious CIOs to migrate to cloud resources and maintain that acceleration.
Public Cloud Services IT spending is expected to increase to $304.9 billion (18.6% YoY growth) in 2021. Seventy percent (70%) of organizations say they are planning to increase their cloud spending in 2021 .
“We’ve seen two years of digital transformation in two months.”
This new market dynamic, heightened the need for compact – high performance application scalability and compact serverless architectures to address demand for the mobile WFH workforce transition. End-user Software as a Service (SaaS) spending growth is forecasted at $117.7 billion for 20211 and envisage 500 million new Cloud Native digital apps by 2023 .
Driven by Pandemic, WFH will help leapfrog corporate digital transformation as an additive to emerging technologies that demand scalability, reliability and continuous delivery of features and services to the market.
EMERGING TECHNOLOGY INCREASING DEMAND FOR CLOUD COMPUTING AND SERVICES:
- Faster acceptance of new technologies: AI Engineering, 5G Mobility, Serverless Application architectures
- The need for multi-cloud deployment and management across those environments
- New set of challenges for CISOs/security and CIO regulatory and business compliance for diverse global privacy requirements
FACTORS DRIVING THE CLOUD MARKET FORWARD :
- Tech companies driving customer migration to cloud environments
- Emergence of consumption-based IT – public cloud-like capabilities in on-premises and added security
- Shift of maintenance of legacy IT to new digital transformation initiatives
- Hybrid cloud has become central to successful digital transformation
Elevated technologies like quantum computing, open source, containerization, 5G mobility and AI, are empowering organizations to operate their workloads on public cloud IaaS, PaaS with FaaS and CaaS jump starting native cloud development. All while avoiding another storm in maintaining enterprise GRC (governance & regulatory compliance) and preemptive protection in delivering compact, cost-effective, and secure application products and services.
While none of us can truly predict the weather, we can all leverage the silver linings and learnings from past storms. Cloud Computing paths and driving technologies, pushing down the road into the future; include emerging trends and drivers that can be engaged:
- Cloud Edge exceptional jump in growth with accelerated WFH drivers
- AI Engineering especially in the areas of DataOps, ModelOps and DevOps
- Multi-Cloud and Cross Provider Service offerings
- Serverless Applications as part of the top five top PaaS cloud services
- Automated Orchestration and Optimization to ease the complexity of managing across interconnected services
These trends are areas to watch for new opportunities and investment and, given our current trajectory, be confident of the future. With the leader being the Cloud’s “as a service” (XaaS) category, both public (shared) and dedicated (private) cloud services, forecasted to deliver a five-year CAGR of 21.0% with overall revenue expanding to a $1.0T Market by 2024. XaaS will be one of the largest categories to elevate the conversation and explore at this year’s TiEcon.
Come join us as we explore Cloud silver linings of emerging opportunity. Engage with entrepreneurs and thought leaders at Silicon Valley’s top world ranked event; TiEcon’s Cloud and Security technology track May 6th – 8th www.tiecon.org
About the Authors
 Gartner Newsroom Press Release, Stamford, Conn. November 17, 2020 “Forecast: Public Cloud Services, Worldwide, 2018-2024, 3Q20 Update.”
 Business Standard Microsoft saw 2 years of digital transformation happen in 2 months: Nadella April 30, 2020
 Analytics Insight: Top Cloud Computing Funding and Investment in October 2020 by Vivek Kumar October 20, 2020
 International Data Corporation (IDC) – Cloud Adoption and Opportunities Will Continue to Expand Leading to a $1 Trillion Market in 2024, October 15, 2020