The total revenue opportunity for cloud computing in the enterprise
segment is poised to reach $1.4 trillion in 2027 globally, driven by
positive IT investment sentiment seen among enterprises globally, and
the large-scale automation and IT modernization initiatives taken up by
them, forecasts GlobalData, a leading data and analytics company.
Sandeep Kolakotla, Technology Lead Analyst at GlobalData, comments:
“While COVID-19-fueled transformations seen among enterprises,
including en masse adoption of remote work, automation of key business
processes, and the use of digital channels for customer interactions,
have 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.”
According to GlobalData’s recent ICT Decision Makers Survey, a
majority 81% of the respondents have confirmed that there has been an
increase in their overall enterprise ICT budgets for the year 2023
compared to previous year. When particularly asked about cloud
computing, about 76% of respondents confirmed that there has been an
increase in their enterprise cloud computing budget for 2023 over
previous year, which presents a favorable growth outlook for cloud
computing market.
With enterprises expected to accelerate their IT modernization efforts,
cloud computing market will stand to gain big time, as moving to cloud
enables organizations to achieve greater scalability, agility,
resilience, and ability to leverage DevOps practices for infrastructure
and software development.
The growing IoT use cases, accelerated by 5G networks will also lend
traction to the enterprise cloud computing market over the forecast
period. This is because cloud computing not only provides a platform for
storing, processing, and managing the IoT data but also enables IoT
devices, connected factories, and data to be accessed, monitored, and
managed remotely.
Increasing use of artificial intelligence to analyze huge volumes of
data to generate meaningful insights makes for another strong business
case for enterprise investments on cloud infrastructure, which can
provide scalable storage and computing capability to crunch large
amounts of data and AI algorithms.
Charlotte Dunlap, Research Director at GlobalData, adds: “Among cloud
computing service segments, public cloud services (SaaS, PaaS and IaaS)
account for more than 60% of the total addressable market over the
forecast period, with SaaS being the largest category overall. PaaS, on
the other hand, will be the fastest growing cloud service category over
the forecast period.
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
modernization projects underway, spurred by Kubernetes, will also
underpin PaaS market growth over the forecast period.”
While the large enterprise (1,001+ employees) segment will account for
the largest share of the total revenue opportunity for cloud computing
globally, revenue from the micro, small & medium size enterprise (MSME)
segment (1-1000 employees) will increase at a faster CAGR of 18.1% over
the forecast period.
*The Decision Makers Survey 2023 was conducted by GlobalData in H12023
and includes responses from 2,428 respondents across the globe. The
survey is conducted annually.
