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Market intelligence group, SkyQuest, has released a report on the global public cloud market, valuing it at $242.73 billion in 2021. The report estimates the market to reach $649.62 billion by 2028 at a CAGR of 15.10% during the forecast period.
Businesses are increasingly adopting cloud-based services. That’s because of several benefits, including the lower cost of IT infrastructure. Public cloud providers own and manage all physical infrastructure. This takes the burden away from businesses when it comes to hardware and software maintenance. Businesses can save on IT labor costs or redirect their human resources to other crucial internal processes. They don’t need to invest in hardware or buy expensive licenses for software.
Scalability and a pay-as-you-go pricing approach are also among the top benefits. Having their tech services in the cloud allows businesses to scale their operations up or down based on demand. Meanwhile, pay-as-you-go pricing makes technology more consumer-friendly, so it makes public cloud even more attractive to end-users.
Impact of COVID-19 on Public Cloud Adoption
COVID-19 accelerated the shift to cloud-based solutions. During lockdowns, businesses relied on applications that were delivered via the cloud. These applications enabled remote work and collaboration and business continuity. As a result, businesses realized the need to invest in digital tools that would improve their resilience amid another health crisis.
The shift to online work also brought an unexpected change in the mindset of businesses. They saw how public cloud solutions made their processes and teams more efficient. They are able to use affordable technology and big data to reach customers and grow their business at a faster rate.
Furthermore, previously unimaginable ways to improve productivity and revenue are now possible through cloud technology. This is also the reason why experts believe remote and hybrid work environments will continue. As there is no more going back to the pre-pandemic way of working, the public cloud market will also continue to grow to meet this existing demand.
Opportunities in Public Cloud
The report segments public cloud end-user into Cloud Business Process Services (BPaaS), Cloud Application Infrastructure Services (PaaS), Cloud Application Services (SaaS), Cloud Management and Security Services, Cloud System Infrastructure Services (IaaS), Desktop as a Service (DaaS). Among these, SaaS is the most popular “with 73% of businesses moving the majority of their applications to the SaaS platform.”
This trend also supports the continuous uptick in cloud spending in Q2. Companies see SaaS as an essential business investment, which contributed to the 29% growth of the cloud market in the second quarter. Businesses of all sizes, across all industries, now use at least one SaaS solution. As more businesses prefer the SaaS delivery model, the SaaS segment will also continue to grow. Vendors can target high-demand sectors using SaaS to take advantage of more revenue opportunities. These include banking, manufacturing, and retail.
On the other hand, the rising preference for SaaS delivery is also fueling the demand for software developer jobs. Even before the Great Resignation phenomenon, there has been a skills shortage in IT for software developers. Even though vendors can address the gap by offering low-code/no-code SaaS platforms, there are still sectors that will require experienced and highly skilled developers.
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