Billions were spent on cloud computing in 2019, what does 2020 have in store?

By:  |  Category: Blog Thursday, February 13th, 2020  |  No Comments

What once used to seem like a foreign concept stored somewhere in a galaxy far, far, away, is now a billion-dollar industry, and like that galaxy it’s continuing to expand at an impressive rate.

According to a report recently released by analyst firm Canalys, “Organizations across the globe splashed out a record $107 billion for cloud computing infrastructure services in 2019, up 37% from the previous year.”

Keep in mind this report focuses solely on investments in cloud infrastructure, which is only a fraction of overall spending on cloud services (estimated to have reached $229 billion in 2019). 

Who benefitted most from that billion-dollar payout? Amazon Web Services (AWS), taking in one third of the profits at 32%. Far ahead of its #2 ranked competitor Microsoft Azure at 17%. These two businesses combined however, account for almost half of the cloud infrastructure market.

“As most industries digitize, businesses are increasing their spend on infrastructure-as-a-service (IaaS) and growing their investments in servers, storage, compute and other cloud-based services ranging from billing and monitoring to security.”

Given this shift in priorities to cloud based services and scaling existing applications, this increase in demand is predicted to continue for the next five years, pushing total spending on cloud infrastructure services to $284 billion by 2024.

Canalys chief analyst Alastair Edwards describes a transition in almost every industry, “to being technology providers.” And looking around, or down at the applications we open almost daily on our smart devices, it’s easy to feel that transition ourselves.

The growth of this industry is due in part to how easily cloud providers now integrate with channel partners, offering services that meld with multi-cloud and hybrid solutions. “The role of channel partners will become more important, as cloud use increases, in terms of defining application strategies, integration into business processes, optimizing user experiences, governance and compliance, as well as securing data and workloads,” says Alastair Edwards.

While Amazon Web Services and Microsoft Azure share most of the cloud computing glory, there is a third rising star in this new space; Google Cloud.

Canalys’ report states Google Cloud has found continued success “in reaching new enterprise customers, and that it is also developing its network of channel partners. The search giant’s cloud business represented only about 6% of investments in IaaS in 2019.”

A recent survey suggests that optimizing cloud costs in the “top initiative for 64% of enterprise customers.” Leading 2020 into “a battle of the cloud giants”

If you need assistance with your IT infrastructure, setting up your cloud configurations, or cybersecurity compliance give EnhancedTECH a call at 714-970-9330 or contact us at [email protected]

–Emmy Seigler

Source: https://www.zdnet.com/article/record-sums-were-spent-on-cloud-infrastructure-this-year-and-the-bills-will-only-get-bigger/

Image Source: https://www.pexels.com/photo/blue-and-yellow-graph-on-stock-market-monitor-159888/

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