What is Cloud Infrastructure Service?
The human tragedy the COVID-19 pandemic has inflicted on the world is incalculable and continues to grow. COVID-19 is also impacting entire industries, causing them to randomly move in unpredictable ways, directly impacting cloud services. The trend toward operating more applications, both new and existing, in public cloud environments will continue over the coming years. Organizations will look to take advantage of the unlimited access to capacity, more advanced services, such as AI and analytics, as well as APIs and other tools to accelerate their digital development. Cloud infrastructure services spending may see a slight drop in investment growth momentum for 2020 due to COVID-19 and may reach 135 USD billion. As many employees are transitioning to remote working, there is a sudden surge in demand for collaboration solutions. The share prices of collaboration tools providers have been soaring, and Microsoft announced that it now has 44 million users of the Teams platform globally, due to the high demand for collaboration solutions. At the PaaS layer, the impact is not so clear. Some developers are being sent on leave, as development projects are stalled in favor of remote working projects or until businesses can begin to operate normally again. At the same time, there are many students and developers at home with time to spend on developing new applications and solutions to problems relating to the COVID-19 crisis.
The market study is broken down by Type (PaaS, IaaS, CDN/AND, Managed Hosting, Colocation Services and DRaaS), by Application (BFSI, Telecommunications and IT, Manufacturing, Retail and eCommerce and Others) and major geographies with country level break-up. and may see market size of USD275.0 Billion by 2026.
In the past few years, something that has not changed in Cloud Infrastructure Services is the market is continued intense competition. AWS still outpaced its competitors and showing its dominance in the market. AWS still outpaced its competitors and showing its dominance in the market, the enterprise sales and marketing resources combined with the general availability of AWS Outposts and the launch of AWS Local Zones will drive further growth. Also, Microsoft Azure’s and Google Cloud continually makes progress in penetrating new enterprise customers and establishing its network of channel partners. Alibaba Cloud remained the leader in China as its growth re-accelerated. It aims to expand its enterprise customer base across the rest of Asia Pacific and Europe, where it is using two-tier distribution. IBM makes the hybrid move, which acquired Red Hat, and could change the landscape.The Players having a strong hold in the market are AWS, Microsoft, Google, Alibaba. Analysts at AMA Research estimates that Players from United States will contribute to the maximum growth of Global Cloud Infrastructure Service market throughout the predicted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
AWS (United States), Microsoft (United States), Google (United States), Alibaba (United States), IBM (United States), Oracle (United States), Fujitsu (Japan), Rackspace (United States), DigitalOcean (United States), Verizon (United States), Cisco Systems (United States) and VMware (United States) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are CenturyLink (United States), Bluelock (United States), Dimension Data (South Africa), OVH (France), Interoute (U.K), Joyent (United States), Skytap (United States), ProfitBricks (Germany) and Tencent (China).
Segmentation Overview
AdvanceMarketAnalytics has segmented the market of Global Cloud Infrastructure Service market by Type, Application and Region. On the basis of Type, Hybrid cloud deployment are dominating the market in the year 2020
On the basis of geography, the market of Cloud Infrastructure Service has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). North America region held largest market share in the year 2020. Europe on the other hand stood as second largest market due to the presence of key companies into the region and high technological advancement. If we see Market by Organization Size, the sub-segment i.e. Small and medium sized Enterprises (SME’s) will boost the Cloud Infrastructure Service market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Deployment model, the sub-segment i.e. Public will boost the Cloud Infrastructure Service market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Service, the sub-segment i.e. Compute as a Service will boost the Cloud Infrastructure Service market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Market Leaders and their expansionary development strategies
On 3rd December 2019, AWS has launched a Local Zone in Los Angeles, California. The Local Zone is a new type of AWS infrastructure deployment that brings select AWS services very close to a particular geographic area. This Local Zone is designed to provide very low latency (single-digit milliseconds) to applications that are accessed from Los Angeles and other locations in Southern California. and On 9th July 2019, IBM and Red Hat announced has that they have closed the transaction under which IBM acquired all of the issued and outstanding common shares of Red Hat for USD 190.00 per share in cash, representing a total equity value of approximately USD 34 billion.
In December 2018, Velcom, a mobile operator tested its new CIS i.e. Voblaka. The new platform is made available for free to customers for up to a month.
Market Trend
- Increase adoption of cloud-based technologies is the current trend of this market.
- Owing to the increased demand for efficient data sharing computing service
- The rise in the adoption of cloud computing services
- Cloud IaaS adoption is increasing as enterprises are turning to a cloud-based IT model to decrease the capital expenditure.
Market Drivers
- Increase in the investments in new digital transformation initiatives by the Government such as cloud and analytics.
- Increased awareness among enterprises about cloud Infrastructure
- Low cost, Flexibility, scalability and security, Internet of Things (IoT).
- Business continuity requirements leading to high demand for cloud storage.
- Disaster recovery and backup services.
- Increased availability of skilled labor.
Opportunities
- Improved data management, enhanced IT infrastructure management and flexibility, and better security and compliance.
Restraints
- Rigorous government rules and regulations
- The limited number of bandwidth providers
- Lack of access to high-speed internet.
Challenges
- The acceptance rate of the cloud infrastructure services is to strengthen the responsiveness about its safety aspects and Latency in the cloud-based network which has been showcased as the main challenge for this market.
Key Target Audience
Training and consulting service providers, Cloud Infrastructure service vendors, Telecom service provider, Cloud Infrastructure service provider, Government agencies, Managed service provider and Platform providers
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have the better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with purpose to understand companys positioning regarding market value, volume and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders etc. and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, analyst team keeps preparing set of questionnaires and after getting appointee list; the target audience are then tapped and segregated with various mediums and channels that are feasible for making connection that includes email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey etc.