The global cloud computing market size is expected to reach a value of USD 838 billion by 2027, with a CAGR of 16.9% during the forecast period, 2020–2027. In the last few decades, the enterprise work model has undergone crucial changes, ranging from high-end automation to IoT-based computing. There is also a growing trend of BYOD adoption among enterprises, wherein employees operate remotely with the help of tablets, laptops, and mobiles.
As per our analysis, in 2018, around 70% of the employees globally had adopted the BYOD trend for emails, presentations, and other work, which also helped organizations reduce infrastructure costs. A survey released by Cisco's Internet Business Solutions Group in 2018 reveals that companies can save an estimated USD 3,150 per employee with the incorporation of BYOD.
Risk of Data Breach & Leakage Associated with the BYOD Trend
At the same time, the adoption of BYOD also increases the risk of a data breach or leakage due to difficulty in accessing employees' mobile devices, which has urged organizations to utilize cloud computing services for efficient mobile device management. Particularly for small and medium enterprises that face resource constraints, cloud computing offers a cost-effective and the least resource-intensive method for data security. Additionally, with cloud computing in action, data administrators can grant data access rights only to some authorized personnel, lowering the scope of data loss.
Cloud Computing to Grow in Tandem with IoT-Based Technologies
IoT-based devices generate large volumes of data, putting immense pressure on internet infrastructure and leads to an upsurge in the demand for cloud computing. Both these technologies are symbiotic in nature and operate efficiently, delivering higher value to the working model. As per our analysis, IoT devices are estimated to surpass the 50-billion mark by 2025, with 65.24 zettabytes (ZB) of data.
Microsoft Azure IoT Suite, IBM Watson IoT Platform, Google Cloud's IoT Platform, and AWS IoT Platform, are a few IoT-based cloud platforms that possess higher storage and scalability, which in turn proves beneficial for the whole IoT infrastructure. As per estimates by Reports Monitor, the global IoT cloud platform market is expected to reach a value of USD 8.5 billion by 2021, with a CAGR of 31.25%.
IaaS Segment to Record the Highest CAGR among Segments by Model
The IaaS segment is expected to register the highest CAGR of 17.6% among the segments by the model during the forecast period (2020–2027). The segment's growth is attributable to the increasing adoption of IaaS among large enterprises, which consume significant time to innovate or adopt new technologies as they have several active domains to handle. However, these enterprises are under immense pressure to adopt cloud computing as they find it challenging to manage their own hardware and run their own data centers. Thus, large enterprises deploy IaaS not only for ease of operation but also to focus on their core competencies.
Storage/Backup & Disaster Recovery Segment Dominates the Market by Application
The storage/backup and disaster recovery segment dominates the market by application, as the processing of high volumes of data poses a high risk of data loss. Data loss can disable applications and workflows and decline sales, leaving a business paralyzed. Therefore, companies are realizing the importance of disaster recovery and adopting cloud computing services. Cloud disaster recovery options are budget-friendly compared to their counterparts, which further drives their adoption.
The COVID-19 outbreak is positively influencing the cloud computing market as companies are shifting to a work-from-home model, which is spurring the widespread adoption of public cloud services, such as video conferencing, remote project collaboration, e-commerce, education, gaming, and video streaming, creating unprecedented demand.