Cloud To Burst At $650 Billion In 2020

According to a report by Occams Business Research & Consulting the Global Cloud Market is expected to reach $650 billion by 2020 from $90 billion in 2013 at a CAGR of 29%.  The global platform as a service market with the highest growth rate among the cloud services is expected to grow at 39% CAGR by 2020. Among the geographies, Asia Pacific is the fastest growing region with 35% CAGR for the forecast period. The report discusses global cloud computing market on the basis of service models, deployment models and regions.

The demand for cloud computing is growing exponentially as there is increasing need for Big Data Management. Cloud computing is being largely used by online media applications such as Drop box, Gmail, Face book, Ever note, Skype etc. Cloud Computing is an internet-based technology that serves as a centralized data source to remote devices connected via internet or intranet. It is a network where a program or an application runs on a server and shared across multiple devices such as PCs, laptops, and mobiles.

Cloud computing services are deployed via public, private and hybrid cloud models. Among these the public cloud leads the market with maximum market share. A major reason for the adoption of public cloud is its cost efficiency due to its “pay as you go model”. However, it also brings economies of scale to the cloud service provider by optimizing operations, support and maintenance. Private cloud is the second largest segment for its more secured services. Hybrid cloud model, at present has the least market share but will show a tremendous growth in the future.

The cloud computing service segments include cloud advertising, Business process as a Service (BpaaS), Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Among all these PaaS is the fastest growing segment and is expected to reach $35 billion in 2020. The key factors responsible for the growth of PaaS market are the ability to perform better and secured deployment of application, meanwhile providing scalability by reducing cost. Cloud advertising and BpaaS are expected to capture a large share of the global cloud market. Software as a Service which had the highest market share in 2013 among the core cloud services, that is, IaaS, PaaS, and SaaS is expected to grow at a slower rate.   

The regional market opportunity for the cloud computing service providers is the growing Asia Pacific region as it is home to several developing economies like India and China. Asia Pacific cloud market is expected to grow at a CAGR 34% followed by Europe. Within Europe, countries that are expected to show tremendous growth include France and Germany. Latin American cloud market is expected to grow at a CAGR of 31% and the governments of the region are looking at 100,000 job opportunities annually in the cloud computing business. Healthcare applications are expected to be the largest market for cloud computing services followed by the banking sector.

Cloud computing services have shown tremendous growth and development due to the growing attention of various ICT firms towards development of cloud-based services as well as increasing demand for these services by the businesses to achieve a sharper edge.

Cloud computing is the need of the hour as transnational companies are looking for efficient and secure Big Data management and therefore there is a huge market opportunity for cloud computing service providers. Occams Business Research has done an in-depth study on the Global Cloud Computing Services Market outlining opportunities across the globe and a forecast of the revenues in the Cloud Computing Services Market through 2020.