Professional Cloud Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The professional cloud services market is expected to register a CAGR of 17.76% during the forecast period. The cloud services market is expected to grow because more people are using artificial intelligence (AI) and more attention is being paid to digital transformation projects.

Key Highlights

• Moreover, the increase in the service-oriented economy is one of the major factors driving the growth of the professional cloud services market. This was made possible by cloud computing, which helps manage databases for less money and lets people access the data from anywhere.
• Furthermore, in healthcare, the need is 24*7, and this industry provides lots of data that needs to be handled for the benefit of the patients. With cloud services, data can be easily shared among medical service providers, providing healthcare solutions to patients. AI and machine learning, which come with cloud services, support this because they shorten the time it takes a healthcare professional to analyze the data and provide patients with the best solution.
• For instance, in March last year, Microsoft Corp. declared advancements in cloud technologies for life sciences and healthcare with the general availability of Azure Health Data Services and updates to Microsoft Cloud, especially for healthcare. With the recent closing of its purchase of Nuance Communications, Microsoft is in a unique position to make it easier for organizations to help people by using trusted AI to solve the biggest problems and change the future of healthcare for everyone.
• However, the need for more skilled professionals and an increase in the number of cyberattacks year after year are acting as hurdles to the growth of the cloud market.
• Due to worries about public health safety during the COVID-19 pandemic, numerous countries worldwide shifted to work-from-home policies, necessitating the development of remote working infrastructure. Because of this, after COVID-19, organizations at all levels, including government agencies, expected a number of possible effects, such as a rise in demand for virtual services, which would lead to the need for a number of cloud-based services.

Professional Cloud Services Market Trends

Hybrid Cloud is Expected to Have High Growth in the Market

• A hybrid cloud is an overall combination of a public cloud provider, such as Google Cloud or Amazon Web Services, with a private cloud, i.e., one designed to be used by a single organization. The hybrid cloud has given businesses more flexibility and more ways to deploy data by letting workloads move between public and private clouds as their computing needs and costs change.
• Currently, many organizations of any size, be they small or large, are transforming from traditional to digital modes of business. This transformation is creating a market for hybrid cloud because of the benefits provided, like reduced total cost of ownership (TCO), high security, flexibility, and agility. IBM stated that 89% of IT leaders expect to move business-critical workloads to the cloud, and the growth in digitization drives all of this.
• Various firms are launching significant offerings based on cloud services. For instance, in August last year, Ridge, an edge cloud provider, introduced a new comprehensive cloud solution, Hybrid Cloud. Ridge stated that its distributed cloud architecture enables businesses to unify business-critical apps across all their locations, whether they are managed or on-premises locations run by Ridge. With the help of this solution, businesses can thus manage their workloads through a single portal, providing companies with a cohesive cloud experience across all public and private locations.
• As of August last year, around 5,000 services and products were offered on the Google Cloud Marketplace, of which about 1,230 belonged to the virtual machine category. The Google Cloud Marketplace is primarily a digital catalog on which independent software vendors can list their total services and products. This allows Google Cloud customers to pick from various solutions that run on Google Cloud to cater to their various specific needs.
• As per IBM, with hybrid platforms as the central strategy for supporting key application workloads, organizations and firms are widely reaping the business benefits of improved workload efficiency. In the last year, the most prevalent advantage of running applications on a hybrid cloud, as reported by IT leaders, was the overall ability to optimize business continuity and disaster recovery.

North America to Have the Largest Market Share Over the Forecast Period

• North America holds a significant portion of the professional cloud services market share. It is primarily due to the presence of large firms in the region. Some key firms include Cisco Systems, Inc., Microsoft Corporation, Oracle Corporation, Hewlett-Packard Company, Dell EMC, and many others.
• North American companies are actively involved in making strategic mergers and acquisitions. For instance, in May last year, American technology giant IBM declared that it had signed a Strategic Collaboration Agreement (SCA) with Amazon Web Services, Inc. (AWS), with plans to deliver a broad array of its software catalog as Software-as-a-Service (SaaS) on AWS. Building on IBM Software being available as-a-Service (aaS) on IBM Cloud, this first-of-its-kind agreement between IBM and AWS would offer customers and clients easy and quick access to IBM Software that spans data, automation, and AI, security, and sustainability capabilities built on Red Hat OpenShift Service on AWS (ROSA) and runs cloud-native on AWS.
• Companies in the region are introducing new products or services to gain a competitive advantage. For instance, in June last year, Hewlett Packard Enterprise announced that Eclit had selected the HPE GreenLake edge-to-cloud platform to introduce a new cloud portfolio and expand its overall infrastructure as a service and managed IT services offerings. The comprehensive service suite allows customers to deploy custom-built solutions with a scalable, agile, and pay-per-use cloud experience across all workloads.
• Canadian companies are also increasingly adopting the BYOD trend. With the increase in the adoption of tablets and smartphones for accessing business-critical information, the growth of BYOD in the country is expected to increase, which, in turn, is expected to impact the professional cloud services market during the forecast period.

Moreover, the Government of Canada has a 'cloud-first' strategy, whereby cloud services are identified and evaluated as the principal delivery option when initiating information technology investments, initiatives, strategies, and projects. The cloud will also allow the government of Canada to harness the innovation of private-sector providers to make its information technology more agile. These kinds of projects are likely to give the market a lot of chances to make money, since this model allows private cloud security and public cloud flexibility.

Professional Cloud Services Competitor Analysis

The professional cloud services market is very competitive because of the presence of many major players like Cisco Systems Inc., Hewlett-Packard Company, Microsoft Corporation, Dell EMC, and Fujitsu Limited, among others. The main growth strategies used by these businesses to survive the fierce market competition are product launches, high expenditures on research and development, partnerships, and acquisitions.

In September 2022, GTC-NVIDIA announced its first infrastructure- and software-as-a-service offering, NVIDIA Omniverse Cloud. It is mainly a comprehensive suite of cloud services, especially for artists, developers, and enterprise teams to publish, design, operate, and experience metaverse applications anywhere.

In February 2022, Deloitte, KeyBank, and Google Cloud declared an expanded, multi-year strategic relationship to assist KeyBank in achieving its goal of being a cloud-first bank. KeyBank would be one of the largest regional banks in the U.S. to run its main platforms and applications on Google Cloud infrastructure. This would allow the financial institution to change how it runs, develops, and delivers digital experiences to its partners, clients, and teammates, all while keeping security.

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