The Cloud Services Market Will Be Driven By IoT Technology
The global cloud services market is expected to grow from around $366 billion in 2019 to nearly $528 billion in 2022 at a compound annual growth rate (CAGR) of 12.9%. Internet of Things (IoT) technology adoption by manufacturing, transportation services and other industries is expected to drive the cloud services market in the forecast period. IoT is a network of physical objects such as devices, vehicles, buildings and other items which are embedded with electronics, software, sensors and network connectivity that enable these objects to collect and exchange data. The emergence of IoT based support service offerings by the cloud services industry is expected to drive revenues for cloud service providers.
The increasing adoption of the Internet of Things (IoT) worldwide, continuous innovations in real-time data analytics, and cloud computing are set to push the Internet of Everything (IoE) to the fore in the near future. IoE relies on machine-to-machine communications, data, processes, and how humans communicate with everything in their environment. Cloud computing plays a significant role as the IoE develops into complex systems aimed at simplifying all interactions. With IoE, humans will be able to interact more easily in human-to-human communications. For example, Google’s Pixel Buds, released in October 2017, is a headset equipped with the ability to recognize and translate 40 languages in real-time for its user. These buds use Google Assistant to translate the languages in cloud.
Cloud computing is continuously evolving as well. A global survey within IT companies was conducted by IDG Communications, Inc. (IDG), in 2018. According to the survey, 43% of respondents are using only hybrid cloud. 12% of respondents are only using multi-cloud. 30% are using both hybrid and multi-cloud.
According to the same survey, 59% of respondents said that using multi-cloud has increased cloud options. 40% of respondents said that easier and faster disaster recovery is possible using multi-cloud. 38% of respondents said that flexibility is enhanced by dividing the workload across multiple clouds. With growth and technological advances in the cloud industry, demand is growing for a multi-cloud model. In 2018, the multi-cloud adoption rate rose to 81% among enterprises, while the adoption rate of hybrid cloud declined from 58% in 2017 to 51% in 2018. Multi-cloud solutions provide enterprises with the flexibility to innovate at speed as the solutions are not tied to one provider. The use of multi-cloud solutions also helps minimize costs of data storage by providing an option of shifting operational data to the cheapest cloud service provider whenever there is a change in price.