Cloud computing has recently been touted as one of the most promising and valuable technologies. Cloud computing was the most reliable answer to the Covid-19 dilemma for every business in the technology world and otherwise.
If cloud growth in 2021 was predicted to grow at 23%, roughly about $270 Billion compared to 2020. In 2022, the cloud computing segment is forecasted to grow to a whopping $482 Billion.
While we are moving steadily towards tackling the post-pandemic situation, the new reality is that the world will rely heavily on cloud computing. The surge in digital services is garnering colossal attention and making the cloud the centrepiece of all digital experiences.
As per the latest research by Gartner, cloud revenue in the coming years will surpass non-cloud revenue for IT markets. “There is no business strategy without a cloud strategy. The adoption and interest in the public cloud continue unabated as organizations pursue a “cloud first” policy for onboarding new workloads,” said Milind Govekar, the Vice President at Gartner.
By 2025, as per the latest research, more than 85% of organizations will follow a cloud-first principle. To reap complete benefits and to be able to execute their digital strategies, they will have to upgrade to the latest cloud-native architecture and technologies.
“The pandemic’s economic, organizational and societal impact will continue to catalyze digital innovation and adoption of cloud services. This is especially true for use cases such as collaboration, remote work and new digital services to support a hybrid workforce,” says Gartner senior research director Henrique Cecci.
Let’s look at how cloud industry is expected to dominate the year 2022
1. Public Clouds will gain more importance
Public clouds have accelerated at the rate they grow due to the pandemic. As per IDC, Enterprise cloud – both public and private has improved by 34.4%, whereas the non-cloud IT spending fell steeply by 8%.
Market giants like Amazon Web Services, Microsoft Azure, and Google Cloud Platform are expected to consolidate their leadership in the cloud market, and AWS is slated to maintain its market leadership.
In the Indian sub-continent, public cloud usage is forecasted to grow to a total of $7.3 Billion in 2022, approximately 29.6% from the previous year. “Public cloud growth continues to be driven by organizations that want to modernize their IT and reduce their capital expenditure spend,” said Sid Nag, Research VP at Gartner. “The desire for agility and innovation in both business transformation and IT operations is also fuelling the growth of public cloud.”
2. Growth of Cloud Service Applications
The cloud service model has seen an increase of 40% compared to the previous year. The cloud service applications are not far away. Software-as-a-service (SaaS) is forecasted to grow to about $2.2 Billion next year, approximately 21.4% more than in 2021.
Infrastructure-as-a-Service (IaaS) is expected to grow 36.8% by 2022, accounting for $895 million.
3. Hybrid and Multi-cloud Enables More Business Growth
Businesses have long migrated to the cloud, and since then, they have depended on two models: private and public cloud options. They are easily accessible, scalable, more customized and flexible. A private cloud, where the data never leaves the organization’s premises, is required for security and regulatory reasons. Most prominent companies now offer a “hybrid” model that offers the best of both worlds – private and public. Traditional businesses previously were moving towards public clouds due to their growing popularity. But a significant amount of emphasis is being laid on hybrid and multi-cloud. IT organizations will look for hybridization and multi-cloud technologies to avoid being trapped in a Cloud rut with a single provider.
According to the latest research, 93% of businesses have a multi-cloud approach, and 87% have a hybrid cloud strategy. This is a direct reflection of how cloud strategy is used widely.
Adopting a Hybrid cloud approach can reduce the complexity and streamline the user experience, making it the go-to platform shortly.
4. The Rise of Serverless
Referred to also as “Functions-as-a-Service,” serverless cloud is gaining more traction in the market provided by Amazon – AWS Lambda, Microsoft – Azure Functions, and IBM cloud functions. Serverless or FaaS usually means organizations are not tied to leasing servers or fixed amounts of storage. It offers a pay-as-you-go service in its proper form, where the infrastructure scales invisibly as the application requires. Serverless going forward will have a significant role to play across the cloud and the entire tech landscape for creating new user experiences and making innovation more accessible.
Cloud Computing shows no signs of stopping and is here to grow. This is especially true for businesses looking for scalable and affordable solutions. Cloud computing will become essential for all companies to improve their remote working capabilities, achieve profitability, and deliver on time.
