CLOUD

COMPUTING

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DISRUPTIVE TRENDS

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 DISRUPTION – WITH AN ADVENT OF HYPERCONVERGENCE INFRASTRUCTURE, DISASTER-RECOVERY-AS-A-SERVICE,
THE RISE OF CONTAINERS, AND THE USE OF AI IN CLOUD AND DATA CENTRES BEING THE NEXT BIG TREND
~USD 80BN+ WORTH OF POTENTIAL OPPORTUNITY OPENING UP

The cost of downtime

is increasing rapidly,
as per a report by IBM
states that the
Hyperconvergence average cost of a
is an IT framework data breach is close
that integrates storage to USD 3.92 million
by 2025 that systems, servers, and
70% of enterprise networking into one
workloads will be single platform. It has
running on the cloud emerged to be a popular
infrastructure. choice due to centralized
by 2022, 40% and simple monitoring,
of enterprises increasing
scalability.
will have doubled
their information
technology asset
spending in edge
Enterprises are Cisco estimates
locations
moving from on- that by 2021, traffic
premises HCM products within hyper-scale data
to cloud-based HCM centers will quadruple, and
products, nearly 60% hyper-scale data centers will
of the enterprises are account for 55% of all
using cloud-based Increase in the data center traffic
HCM demand for by 2021
streaming platforms,
Twitch’s and YouTube
Gaming’s viewership
went up by 10% and
15%, respectively

Sources: International Trade Administration (ITA),

Cloud Computing Association (CCA), Asia Cloud Computing Association, Industry Experts and Press Release

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 NORTH AMERICA, EUROPE & APAC WOULD BE THE LEADING REGIONS IN TERMS OF CLOUD COMPUTING ADOPTION,
INNOVATION & DEVELOPMENT

GROWTH OPPORTUNITY OF CLOUD COMPUTING MARKET BY GEOGRAPHY

NOTH AMERICA MIDDLE EAST AND AFRICA

 The US government developed FedRAMP to provide a standardized approach for security  Public cloud spending in the Middle East, Turkey, and Africa region will increase to USD 2.8
assessment, authorization, and continuous monitoring of cloud services and solutions. billion this year and will top USD 6.5 billion in 2024.
 With the issuance of new emergency standards and guidelines by Occupational Safety and  The Ministry of Communications and Information Technology (MCIT), KSA’s digital
Health Administration (OSHA), Work From Home (WFH) would be the new norm that would transformation plan includes the development of hyperscale data centres to enable Saudi
drive investment on Cloud-based collaboration solution and services Arabia to become a computing powerhouse and the digital hub for the region.
 As per the report ‘A Cloud-Based Digital Fabric Supports a Transformed Enterprise’ by cdw;
more than 50% of organizations in Canada have invested in cloud-based infrastructure and
applications. The IT budget allocation for public cloud services is expected to reach 29% in
2022 compared to 20% in 2020.

EUROPE APAC
 In November 2021 the Europa commission has launched the Digital Europe Programme to  The Australian Government is following a vision to become a leading digital economy and
focus on investment in the areas of artificial intelligence (AI), cloud and data spaces, quantum society by 2030, enabled by government as a platform. In 2017, its Digital Transformation
communication infrastructure among others. The budget of this program is Euro 1.38 Billion. Agency had developed a Secure Cloud Strategy to guide government agencies in their
 The European Alliance for Industrial Data, Edge and Cloud 2021 is to provide transition to and adoption of cloud computing.
grant/investments to facilitate deployment of next-generation, trustworthy, energy efficient and  In 2020, the government of Hong Kong had launched Government Cloud Infrastructure
competitive cloud and edge infrastructure to meet the specific service needs of demand Services in order to become the new generation of government cloud services and facilitate
sectors. agile development and delivery of digital government services.
 As per the report of Eurostat the use of cloud computing services in Europe in 2021 has
increased to 41% compared to 36% in 2020.

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 MARKET POTENTIAL &
HIGH GROWTH OPPORTUNITIES

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 CLOUD COMPUTING MARKET IS ESTIMATED TO GROW AT A HEALTHY CAGR OF 16-17% IN THE NEXT 5 YEARS,
DRIVEN BY AN INCREASED FOCUS ON DELIVERING CUSTOMER-CENTRIC APPLICATIONS IMPROVING
CUSTOMER SATISFACTION

GLOBAL CLOUD COMPUTING MARKET (2021 VS 2026) DRIVERS & OPPORTUNITIES

 Increased emphasis on multi-cloud strategy: According to Accenture 93 percent of enterprises have built up to a multi-
cloud strategy
 Increase I adoption of hybrid cloud services: Enterprises having their existing infrastructure are moving toward the
adoption of cloud computing services and are willing to adopt the hybrid approach so that they can reap the benefits
of on-premises and cloud services. According to Flexera 2021 State of the Cloud Report 87% of enterprises have
already adopted hybrid cloud strategies.
 Boosting the adoption of edge computing technology: Most enterprises focus on edge computing as it minimizes
delays, which is one of the major factors for any real-time application to perform efficiently. Edge computing has a
wide variety of applications, such as smart cities, industrial Internet of Things (IoT), remote monitoring, and content
CAGR: delivery. As per a survey by Cisco states that the number of devices connected to IP networks will be more than three
16-17% times the global population by 2022.
 Rise in number of SMEs to create new revenue opportunities for cloud vendors. As per reports there were 31.7 Million
SMBs in the US in 2020 and 65% of them are likely to invest in new technologies. According to Singaporean SMEs
survey it is found that Cloud adoption stood out particularly, among public sector organizations and SMEs, with
adoption rates at 82 % for both – a rise up from 62% for public sector organizations and 54 % for SMEs from only the
previous year.
USD
USD IMPACT OF COVID-19
940-960
440-460
Billion  The cloud computing market is heavily affected in 2020 registering a Y-o-Y growth of more than 24%
Billion
 Enterprise IT spend is expected to decline due to supply demand disruption, pending business decisions, and other
socio-economic factors. Enterprises would heavily rely on public cloud services to meet their near-term business
2021 2026 goals.
 The sudden shutdown of offices, schools, colleges, and physical retail stores etc. has massively disrupted operations,
this has led to an increase in the demand for digital workplace tools and services such as Zoom, Slack , Blackboard,
Lynda, Canvas, Google Classroom, AnyMeeting, and Moodle. AWS, Microsoft, and Google host and manage all
applications in a public cloud environment.
Source: MarketsandMarkets Knowledge Store

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 OUR OUTSIDE-IN ASSESSMENT IN THE CLOUDCOMPUTING SECTOR HAS UNEARTHED
OPPORTUNITIES WORTH ~USD 950 BILLION POTENTIAL, MORE THAN HALF OF WHICH IS
CONTRIBUTED BY SOFTWARE AS A SERVICE(SAAS) MODEL

MARKET POTENTIAL WITHIN CLOUD COMPUTING SERVICE MODELS BY 2026 (USD BILLION)

PLATFORM AS A SERVICE (CAGR:

18-20%)
 Data Management
 Analytics And Reporting TOTAL
INFRASTRUCTURE AS A SERVICE  Application Development and
(CAGR: 20-22%) Platform
 Integration and Orchestration
 Computing  Application Testing and Quality
 Primary Storage
 Disaster Recovery and Backup
 Archiving
SOFTWARE AS A SERVICE
(CAGR: 12-14%)
 ERM
 CRM
 HCM
 SCM
 Collaboration and Productivity Suites
 Content Management
 BI and Analytics
 PPM
 Operations And Manufacturing

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 80+ CLOUD COMPUTING COMPANIES GROWING THEIR REVENUES WORTH >USD 100 BILLION ARE RELYING ON
MARKETSANDMARKETS

GROWTH PROBLEMS ENCOUNTERED OBSTACLES TO GROWTH

BY CLOUD COMPUTING COMPANIES FOR CURRENT PLAYERS

CUSTOMER PRIORITIZATION AND ASSESSING UNMET NEEDS:

WHERE TO PLAY:

BUILDING A COMPELLING RIGHT TO WIN (RTW):

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KEY UNCERTAINTIES/ PERSPECTIVES WHICH INDUSTRY LEADERS SEEK ANSWERS TO:

KEY QUESTIONS OF KEY QUESTIONS OF COMPANIES IN

CLOUD COMPUTING COMPANIES ADJACENT MARKETS

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