Cloud growth is not the easiest to track as some of you may think. The reason for that is the big sectioning in the information flow between cloud service providers- ones such as we-IT and the companies that actually provide their services using the cloud infrastructure of third-party providers. Nevertheless, the growth of the cloud sector coming to the end of the year is already ascertained. According to Gartner, the public cloud will end in 2021 with a 23% growth in revenue from its market value in 2020. The actual price value of this increase estimates at a striking 63.2 billion USD within just a single year of provisioning and offering services on the cloud. This vast number represents the quick and widespread growth of the cloud sector across the globe,
How does that growth reflect the ‘As-a-service’ model?
One of the easiest ways for businesses to become involved with the cloud is through the ‘As-a-service model’.This explains largely why Software-as-a-service (Saas) has been dominating the market and contributing significantly to the growth of the cloud market size. By the end of 2021, Saas is predicted to reach the groundbreaking $ 123 billion, which reflects the big number of software and services adopting the cloud for provisioning their products to customers. Even though many businesses and industries experienced a recession as a result of the pandemic this year, the cloud has only continued on the growth path thanks to the ‘As-a-service’ models such as SaaS, DaaS, PaaS, and IaaS. The impact of the global pandemic on organizations is predicted to carry on as the main catalyst for the digital transformation of companies,This year and next year we will see even greater initiative by businesses to modernize their virtual workspaces and move to more flexible cloud-based models at cost-effective price offerings . Hybrid models, enhancement of system security and reliability as well as greater efforts into providing effective employee security awareness training are going to be the main focus in 2022 without a doubt.
SaaS and DaaS growth rate
The high demand for subscription-based software models is urging a lot of legacy vendors to transition to the cloud and adopt the SaaS pricing scheme. Some of the largest SaaS products currently on the marketplace such as Adobe, Zoom, and Shopify have experienced astronomical growth over the last nearly two years, reaching a market cap of around $ 315, $ 90, and $ 185 billion USD by September 2021. Selling software on -premises is slowly but gradually being overtaken by the more sustainable and profitable alternatives, deployed and managed from the data centers of cloud providers such as we-IT.
Speaking of raw market growth, DaaS is also predicted to skyrocket in percentage increase within the next couple of years. Today we have more remote workers than ever before, in addition to an increasing number of businesses from all industries that require modern and agile virtual workspaces for their employees. That is a clear indicator for the growth of cloud desktop solutions such as DaaS (Desktop-as-a-Service), which provides the comprehensive environment every digital workplace needs these days to operate remotely, flexibly, and most importantly securely. Daas is forecasted to grow by 67.7% from 2021 to 2022 with an increase from 1.2 billion USD to 2.6 billion USD.
Still, the biggest growth in the cloud market value is attributed to the Software-as-Service value which is satisfying the growing needs of the IT sector to provide agile solutions to their customers in other sectors, demanding subscription-based models for their remotely operating applications. Should we then say that the biggest growth factor in the cloud marketplace is driven by customers such as SMBs and start-up companies in industries such as finance, healthcare, and education? Perhaps we can. SaaS and DaaS provide the environment to those customers to outperform their competition and transition to a more modern working space. Thus, these service models are only expected to grow exponentially within the next year, and the ones following that.
What is the prediction for the cloud sector in 2022?
One of the main predictions by Gartner for the cloud sector in the next year concerns cybersecurity and the large shift in the focus: from simply provisioning services- to providing highly secure deployments of mission-critical applications, and sensitive workloads on the cloud. Even though we know now that cloud data centers are more secure than on-premises infrastructure, these advancements are not something to be taken for a fact. Trusted cloud providers must always work in line with cybersecurity and the latest threat prevention and monitoring practices in the industry. This is highly likely to be the main focus over the course of next year, thus making the cloud even more appealing for software vendors and SMBs globally.
Another interesting growth trend of the cloud that we are expected to see is the increasing number of multi-cloud solutions, that encourage firms to make use of their on-premise infrastructure and multi-tenant cloud off-premise. Over 84% of the largest remotely operating organizations already describe their strategy as multi-cloud or hybrid cloud due to using one or more cloud-hosted services within their existing models. This trend is also predicted to grow by seeing more and more businesses embrace their digital transformation eagerly and confidently in the upcoming year.