The cloud computing markets are growing at a rapid pace. People prefer to incorporate cloud technology in their day to day work because of its convenience. According to the reports of IDC, public cloud spending is expected to grow to more than $195 billion in 2020 from $96.5 billion in 2016.
Cloud computing is growing at a robust rate at the moment and it has a promising future. If you are making plans to invest on a technology based company, you are provided with a variety of advantages, thanks to cloud computing.
What Exactly is Cloud Computing?
The concept of cloud computing is somewhat abstract. However, it is not as difficult to understand the heart of it. The service providers that offer cloud services help people to store applications and data remotely on servers and then access those files through the internet at any time they want. In other words, you can simply upload videos, documents and photos to the cloud and retrieve them at your convenience.
Cloud computing consists of three main services. They include:
• Software as a Service (SaaS) – Software as a Service is associated with the licensure of applications to customers and it is deployed online. The licenses are provided in two different mechanisms as on demand or pay as you go model.
• Infrastructure as a Service (IaaS) – Infrastructure as a Service includes offering everything from servers to operating systems through IP based connectivity.
• Platform as a Service (PaaS) – Platform as a Service can be considered as the most complex layer of cloud based computing. It offers a platform, which can be used to create software. The developed software is then delivered to end customers through the Internet.
What Factors Are Responsible for the Growth of Cloud Computing Markets?
The development of cloud based services has delivered a variety of benefits for companies that belong to many different sectors. For instance, companies have the opportunity to use software from any device by just connecting to the cloud. The connection can easily be established through an Internet browser or a native app. This can help individuals to carry over their settings and files to other compatible devices in a seamless manner.
As a result of cloud computing, people are able to check for their emails on any computer or mobile device. In fact, most people prefer to store their files on cloud services such as Google Drive and Dropbox. On the other hand, some people use cloud services to back up their photos, music and files. This way they can make sure all their files are immediately available through the cloud service when the hard drives crash.
Cloud computing markets can be divided into several categories. All these markets have seen an unprecedented growth over the past couple of years. These markets include:
• Centralized Data Centers – Along with the increasing demand for cloud computing, a lot of centralized data centers have been established. Necessary plans have been taken in order to construct many more in the future as well. Some of the industry giants such as Amazon have figured out that the future lies within the cloud. As a result, they are investing billions of dollars on the development of data centers throughout the country. According to the reports of Reuters, Amazon is planning to make cloud computing as the largest part of its business in the future.
• Security – Security is one of the major concerns associated with cloud computing. People tend to store their sensitive information on the cloud and they are always concerned about the security. As a result, a lot of companies have started offering cloud security solutions for the people in need. Qualys and Websense can be considered as perfect examples of the aforementioned trend.
• Storage – Modern world people do not prefer to store information on local storage devices such as hard drives. Instead, they prefer to seek the assistance of cloud based solutions as they can save the files to a remote database. This can be considered as the main reason behind the popularity of Vendors such as Dropbox and Mozy. Now people can easily move all their files to a secure storage cloud in a convenient manner. It is even possible to sync the files stored in your hard drive with the cloud automatically.
• Cloud Based Applications – Cloud computing offers a variety of services for the people as well. Software as a Service holds a prominent place out of them. Taleo, SalesForce and Keynote Systems are some world famous companies, which offer their services through cloud computing technology. A lot of other companies are making plans to offer their services to the people in need via cloud computing. This is one of the most convenient methods available for the software developers to let their end users access the applications with slow internet connections.
• Virtualization Technology – Cloud based solutions are in a position to deliver some sort of application technology or desktop virtualization. VMware and Citrix are ideal examples for leading vendors who offer virtualization technology through cloud.
Apparently, based on the demand of the public, a lot of money is being invested on cloud computing markets by the industrial giants. According to the financial predictions of IDC, revenue generated by worldwide cloud computing markets would rise to a compound annual growth rate (CAGR) of 20.4% over the 2015-2020 forecast period. Currently the industries at the forefront of public cloud services spending consist of discrete manufacturing, banking, and professional services, which makes for nearly a third of total worldwide revenues in 2016.
In respect to the five year period predicted by IDC, the industries that are expected to reach the fastest revenue growth are media, telecommunications, and retail. Nevertheless, all 20 industries who share profiles in the spending guide will see revenue growth of more than 100% over the forecast period. The cloud computing markets are thus rapidly expanding on a daily basis and it would be a great idea to invest on these markets, given that you have this sort of budget.
The future of cloud computing looks promising and it is expected to grow exponentially in the future. It is predicted that cloud computing would establish itself in the IT industry. Given the technological progress and research currently taking place, people will also be able to experience an explosion of new solutions in cloud computing markets. It remains to be seen how this technology will continue to grow.