Cloud Computing: Expected Growth and its Impact on Businesses
Cloud computing has become an essential part of business operations in recent years. According to reports, the global cloud computing market size is expected to reach $1 trillion by 2025, with a CAGR (compound annual growth rate) of 18.0% during the forecast period. In this article, we will explore the expected growth of cloud computing and its impact on businesses.
What is Cloud Computing?
Cloud computing is the delivery of computing services, including storage, servers, databases, networking, software, analytics, and intelligence, over the internet (“the cloud”). Companies use cloud computing because it offers flexibility, scalability, and cost savings compared to traditional on-premise IT infrastructure.
Expected Growth of Cloud Computing
The COVID-19 pandemic has accelerated the adoption of cloud computing due to the increase in remote work. The need for cloud-based digital tools and remote access to business systems has made the cloud computing market grow at an unprecedented rate.
According to a recent report by Gartner, the worldwide public cloud service market is projected to grow 23.1% in 2021 to total $332.3 billion, up from $270 billion in 2020. The growth is expected to continue, reaching $1 trillion by 2025.
Impact of Cloud Computing on Businesses
The impact of cloud computing on businesses can be seen in many ways.
Cost Savings
Using cloud computing can decrease the capital expenditure associated with traditional IT infrastructure. Companies can pay for the resources that they need, providing more flexibility and avoiding the expenses of maintaining in-house IT hardware.
Increased Flexibility
Cloud computing allows companies to scale up or down based on their changing business needs. They can access data and business systems from anywhere, enabling remote work and distributed teams.
Better Security
Cloud computing providers offer robust security measures to safeguard customer data. The providers have highly skilled and experienced IT experts that can focus solely on ensuring optimal security levels.
Business Agility
Cloud computing enables organizations to adopt the latest technologies without a lengthy and expensive process of installing and updating IT infrastructure. This ability for quick adoption helps businesses to stay ahead of the competition by innovating and adapting to changes quickly.
Real-Life Examples
Many well-known companies have adopted cloud computing and have seen significant benefits. For example, Netflix, a leader in streaming media, shifted its IT infrastructure to Amazon Web Services (AWS), which helped it to cut its IT costs and increase its ability to respond to user demands. Another example is Airbnb, which uses AWS to develop and update its website regularly, without any significant disruptions.
Conclusion
Cloud computing has become a critical enabler of digital transformation. The expected growth in this field suggests that more and more businesses will be adopting cloud computing in the future. The impact of cloud computing due to its scalability, flexibility, cost savings, increased security, and business agility will transform industries to meet the evolving needs of consumers and businesses.
