The global enterprise cloud computing market is on track to achieve a total revenue opportunity of $1.4 trillion by 2027 in the enterprise segment, according to a recent industry report.
According data and analytics company GlobalData, this remarkable growth is attributed to the positive sentiment towards IT investments among enterprises worldwide and their ambitious initiatives in large-scale automation and IT modernisation.
Sandeep Kolakotla, Technology Lead Analyst, GlobalData, noted that the COVID-19 pandemic triggered significant transformations within enterprises including embracing remote work, automateing key business processes, and utilising digital channels for customer interactions. As a result, this has “bolstered enterprise cloud investments over the last two years, the post pandemic optimism over enterprise IT spending will be a key factor for sustained growth in the cloud computing market over the forecast period.”
GlobalData’s recent ICT Decision Makers Survey reveals encouraging statistics, with a majority of 81 percent of respondents confirming an increase in their overall enterprise ICT budgets for 2023 compared to the previous year. Furthermore, 76 percent of respondents reported a rise in their enterprise cloud computing budgets for 2023, indicating a favorable growth outlook for the cloud computing market.
Enterprises are expected to intensify their efforts in IT modernisation, presenting a significant opportunity for the cloud computing market. The shift to cloud technology empowers organisations with enhanced scalability, agility, resilience, and the ability to leverage DevOps practices for infrastructure and software development.
The combination of growing IoT use cases and the rapid development of 5G networks will further propel the enterprise cloud computing market forward. Cloud computing not only serves as a platform for storing, processing, and managing IoT data but also facilitates remote access, monitoring, and management of IoT devices, connected factories, and data.
The surge in the use of artificial intelligence to analyse vast volumes of data and derive meaningful insights serves as another compelling reason for enterprise investments in cloud infrastructure. Cloud solutions offer scalable storage and computing capabilities, enabling organisations to efficiently process copious amounts of data and implement AI algorithms.
Charlotte Dunlap, Research Director at GlobalData, highlights that among cloud computing service segments, public cloud services (SaaS, PaaS, and IaaS) account for over 60 percent of the total addressable market during the forecast period. P
“A key factor driving rapid growth in PaaS segment is the strong enterprise preference for cloud-native application development platforms given their inherent cost advantage and improved application development/deployment/management capabilities. Application modernisation projects underway, spurred by Kubernetes, will also underpin PaaS market growth over the forecast period,” she said.
Regarding revenue distribution, the large enterprise segment (1,001+ employees) will claim the lion’s share of the global cloud computing revenue opportunity. However, the micro, small, and medium-sized enterprise (MSME) segment (1-1000 employees) will experience faster growth at a compound annual growth rate (CAGR) of 18.1% during the forecast period, presenting significant prospects in this sector.
