Cloud Computing is the delivery of on-demand computing services through the Internet. These services include applications, servers, processing power, storage, databases, networking, and analytics. For example, cloud-based storage allows companies to save files in a remote database instead of storing them on a local storage device. Cloud computing is popular for many reasons including scalability, cost savings, increased productivity, speed, efficiency, performance, and security. Users typically pay only for the cloud services they actually use. This allows businesses to easily scale depending on their current needs without the need to purchase additional infrastructure and hire expensive engineers. This helps to lower operating costs and run the infrastructure more efficiently.
Key segments of the Cloud Computing Market are:
Public Cloud - a public cloud is a solution when a cloud vendor supplies clients with access to their data center infrastructure. The vendor is responsible for maintenance, management, security and various upgrades.
Private Cloud - a private cloud is a solution when clients host their own data center. The responsibility for managing, updating, and securing the infrastructure is on the client side, which might include hiring third parties for these purposes.
IaaS (Infrastructure as a Service) - this is a cloud computing offering where the vendor provides the client with on-demand access to resources such as networking, storage, and servers. The client runs their own applications and platforms within the infrastructure.
PaaS (Platform as a Service) - this is a cloud computing offering where the vendor provides the client with access to a cloud environment for developing, managing, and hosting applications.
SaaS (Software as a Service) - this is a cloud computing offering where the vendor provides the client with access to cloud-based software.
Leading Cloud Service vendors include AWS and Microsoft Azure. You can find Cloud Computing Market Size, Cloud Computing Market Share and other trends and statistics below.
The cloud computing market is expected to register phenomenal growth over the next few years. The growth is driven by increasing needs in scalability, automation, agility, improved customer experience, and cost savings. As large enterprises drive their digital businesses forward they often go with a cloud platform as their IT infrastructure of choice. We are also witnessing an increasing use of private cloud solutions for data backup and recovery. Hybrid Cloud is becoming a popular option due to the included benefits of both Public and Private clouds. To summarize, due to security, reliability, optimum utilization of resources and the offered cost-saving benefits, the demand for cloud computing is expected to rise in the forthcoming years, thus accelerating cloud adoption and cloud computing revenue growth.
Cloud Computing is a Mature Industry with a few large competitors and many small ones.
Amazon is a market leader in both the IaaS and PaaS segments. Amazon's cloud offering is Amazon Web Services, which includes compute, storage, databases, and emerging technologies, such as machine learning, artificial intelligence, data lakes, analytics, and Internet of Things.
Microsoft is Amazon's main competition on the cloud computing field with its own product - Microsoft Azure. One advantage of Microsoft is its strong presence in the SaaS segment with products like Office 365 and Microsoft 365.
Salesforce is the current leader of the SaaS cloud computing segment. It provides customer relationship management (CRM) service and also sells a complementary suite of enterprise applications focused on customer service, marketing automation, analytics, and application development.
Google offers the Google Cloud Platform that runs on the same infrastructure that Google uses internally for its end-user products, such as Google Search, Gmail, file storage, and YouTube. Alongside a set of management tools, it provides a series of modular cloud services including computing, data storage, data analytics and machine learning.
Alibaba is is the largest cloud computing company in China, and operates data centers in 21 regions and 63 availability zones around the globe.
Other honorable mentions include IBM, SAP, Oracle, and Tencent. IBM provides a full stack cloud platform with over 170 products and services covering data, containers, AI, IoT, and blockchain. SAP (Systems, Applications, and Products) is a market-leader in end-to-end enterprise application software, database, analytics, intelligent technologies, and experience management. Oracle was the 2nd largest software company by revenue and market capitalization in 2019. Its cloud offerings focus on Infrastructure and Applications. Tencent is another Chinese tech-giant alongside Alibaba, with its portfolio spanning from cloud to eSports. Tencent owns Riot Games, the company famous for developing League of Legends.
Market research sources disagree intensely on the Cloud Computing Market Size, disagree intensely on the Cloud Computing Market Share, but generally agree on the Cloud Computing Growth. The cause of disagreement is due to the lack of a standardized definition of Cloud Computing, limited publicly available data from the major cloud providers, and disagreement over what types of products should be included. Therefore different sources may have very different perspectives of Cloud Computing market share and Cloud computing industry size. For a complete evaluation of the Cloud Computing market, T4 recommends exploring all available sources. T4 aggregated and organized the data from these sources on the T4 Industry Research Platform. See Each source's view of the Cloud Computing Market, Cloud Computing Market Size, Cloud Computing Market Share, and other Cloud Computing Trends on the T4 Platform.
T4 comprehensively aggregated more than 500 reports from more than 50 publishers covering statistics and trends in the Cloud market. This includes Cloud computing market size, Revenue by Region, Cloud Computing market share by vendor, share by region, share cloud computing model, Adoption, Utilization, and more than 30 additional statistics. The Industry falls under T4's Information Technology industry coverage. Industries related to the T4 taxonomy include Cybersecurity, Data Center, Networking, Server and Storage. Related subcategories of the Industry include Public Cloud, Private Cloud, Hybrid Cloud, Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS), Cloud Infrastructure, Cloud Management, Edge Computing, and Fog Computing. You can find reports covering these industries on T4’s Platform.Schedule a Demo