The Future of Cloud Computing Growth: An Overview of the Latest Projections for 2023
Cloud computing has seen a significant rise in demand over the past decade. The rise can be attributed to its cost-effective nature, flexibility, and scalability. Cloud computing services are now widely used by businesses around the world for various applications, such as data backup, storage, and management. The cloud computing industry is expected to continue its growth trajectory in the coming years. In this article, we will explore the latest projections for cloud computing growth by 2023.
Overview of Cloud Computing
Before discussing the projections, let’s first understand the meaning of cloud computing. Cloud computing is a technology that allows users to access shared resources and data remotely over the internet. The cloud service providers offer different types of services, including Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), and Platform-as-a-Service (PaaS). Some of the most popular cloud computing providers in the market include Amazon Web Services, Microsoft Azure, and Google Cloud.
Projections for Cloud Computing Growth
According to a report published by Allied Market Research, the global cloud computing market will grow at a Compound Annual Growth Rate (CAGR) of 14.9% between 2017-2023. The report also suggests that the market will reach $1,251 billion by the end of 2023. The Asia-Pacific region is expected to witness the highest growth rate during this period.
Another report published by Cisco suggests that by 2021, 94% of all workloads will be processed in the cloud. This is a significant increase from 2016, where only 70% of workloads were processed in the cloud. The report also suggests that the adoption of cloud computing among small and medium-sized businesses (SMBs) will continue to rise in the coming years. SMBs are expected to spend more on cloud computing services compared to traditional IT on-site services to boost innovation, collaboration, and productivity.
Factors Driving Cloud Computing Growth
The increasing adoption of cloud computing services can be attributed to several factors. Firstly, the cost-effectiveness of cloud computing services attracts businesses of all sizes. Using cloud computing services eliminates the need for businesses to maintain expensive IT infrastructure, which can require significant upfront costs.
Secondly, cloud computing provides businesses with greater flexibility. Businesses can quickly scale their IT infrastructure up or down on the cloud, depending on their current needs. This flexibility also allows businesses to adopt new technologies and processes without incurring additional costs.
Finally, cloud computing services offer greater security than traditional IT infrastructure. Cloud service providers invest heavily in security measures and have dedicated teams to manage security threats. This allows businesses to focus on their core services and leave IT infrastructure security to the cloud service providers.
Conclusion
In conclusion, the cloud computing industry is expected to continue growing at a rapid pace in the coming years. The projections suggest that by 2023, the market will reach $1,251 billion and the Asia-Pacific region will witness the highest growth. The factors driving this growth include cost-effectiveness, flexibility, and security. The adoption of cloud computing is expected to increase among SMBs, and 94% of all workloads will be processed in the cloud by 2021. Businesses looking to embrace digital transformation and innovation must consider cloud computing as a viable option for their IT infrastructure needs.
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