According to a survey by Canalys, the global technology market analyst firm, in 2021, cloud infrastructure services spending increased to $41.8 billion across the world in the first quarter of 2021. This figure compared to the same period in 2020, was a 35 percent YoY growth and a five percent quarter-on-quarter rise. To break this down in financial terms, around $11 billion more was spent than in Q1 2020 and almost $2 billion more than in Q4 2020.
Cloud Infrastructure Services is a model that allows on-demand access to a pool of computing resources (servers, storage, networking, applications, and services) from anywhere. The new working practices and business processes have accelerated the adoption of cloud transformation services over the past year.
The Market Research Report by Fortune Business Insights suggests that in 2017, the global cloud storage market added up to $30 billion and it steadily rose to more than $61 billion in 2020. Cloud offers many benefits to businesses. Shifting to the cloud reduces IT costs as organizations can reduce the amount they spend on setting up the physical server and related IT infrastructure. Cloud provides the option to be scalable, set threshold limits, automate and be flexible.
Cloud resources can be accessed all the time, irrespective of the time with an internet-connected device. It ensures business continuity by ensuring that the data stored is not lost during hardware or software failures by backing up in network servers. Besides, the cloud also automates updates. Security patches and updates are automatically installed off-side by the cloud service provider. Better collaboration between teams is made possible by cloud.
Businesses trying to optimize their cloud operations are making use of new technologies which include containerization, virtualization, and area computing to operate, manipulate and capitalize on their cloud investments. Throughout this process, companies have become familiar with the diverse traits of various cloud ecosystems and providers. Rather than trying to adopt cloud as quickly as possible, businesses have become extra discerning, showing maturity in their method of moving to cloud.
The cloud and data industry is heading for a bright future. The emergence of technologies like Kubernetes also means that it will always be possible to drive differentiation. Both customers and partners are looking beyond the greater flexibility offered by the cloud.
Going ahead cloud services would be ruled by OPEX pricing models as opposed to CAPEX investments. With this, organizations worldwide get the opportunity to only pay for the services they use and at the scale they need. Thus they can take advantage of the cloud’s greatest asset: scalability.
Despite the unprecedented opportunities on cloud, there are certain challenges that it presents. A 2020 CheckPoint study found that the top cloud security challenges include misconfiguration of the cloud platform/wrong setup (68%), unauthorized access (58%), insecure interfaces/API (52%), hijacking of accounts, services, or traffic (50%), and external sharing of data (43%). (CheckPoint, 2020) The same study found that 75% of enterprises are either very concerned or extremely concerned about how secure they are in the cloud.
With new technologies like the Internet of Things (IoT) and Big Data Analytics becoming more widely used, the value of cloud in enterprises is set to rise over time.