Cloud Professional Services Market - Forecasts from 2023 to 2028

The cloud professional services market is projected to witness a compound annual growth rate of 16.63%, growing to US$94.963 billion by 2028 from US$32.352 billion in 2021.

Cloud service providers have been offering a diverse range of services, which is not only limited to large enterprises but in line with the needs of small and medium enterprises, boosting cloud professional services adoption during the forecast period. In September 2021, for instance, Infosys announced the launch of the Leads and Proposals Solution as part of SAP's industry cloud portfolio for the professional services industry. Furthermore, global digitalization, supported by governments of the respective countries, is leading to rapid digitization of business processes by many companies, further surging the demand for cloud professional services in the coming years.

One of the primary factors driving the growth of the professional cloud services market is the increase in the service-oriented economy. This was made possible by cloud computing, which allows anyone to manage databases for less money and access data from anywhere. Furthermore, in healthcare, the demand is constant, and this industry generates a large amount of data that must be managed to benefit the patients.

Data may be easily exchanged among medical service providers using cloud services, allowing them to give healthcare solutions to patients. AI and machine learning, which are included with cloud services, help with this since they reduce the time a healthcare practitioner takes to analyze data and deliver the best answer to patients. For example, Microsoft Corp. announced breakthroughs in cloud technology for life sciences and healthcare in March 2022, with the general release of Azure Health Data Services and enhancements to Microsoft Cloud, particularly for healthcare. With the recent acquisition of Nuance Communications, Microsoft is uniquely positioned to help organizations serve people by utilizing trusted AI to solve the most difficult challenges and shape the future of healthcare for everyone.

The rising digitization of business processes is boosting market growth.

As the world is becoming connected, an increasing number of companies are now digitizing their business processes to match their needs and goals, which is anticipated to propel the demand for cloud professional services during the forecast period. Governments of various countries have been supporting the digitization of businesses, helping many companies adopt digitization. This is leading to the widespread adoption of cloud computing among companies, consequently leading to rising demand for cloud professional services. For instance, Ridge, an edge cloud provider, offered a new comprehensive hybrid cloud solution. Ridge claims its distributed cloud architecture enables enterprises to unify business-critical software across all their sites, whether managed or on-premises. Businesses may thus manage their workloads through a single interface with the aid of this technology, offering a consistent cloud experience across all public and private sites.

The use of the cloud is increasing in various parts of the world. According to Eurostat, more than 40% of organizations use the cloud for their data storage and ease of use. Many organizations of all sizes, large and small, are transitioning from traditional to digital forms of operation. This transition is creating a market for hybrid cloud because of the benefits provided, such as lower total cost of ownership (TCO), high security, flexibility, and agility. According to IBM, 89% of IT leaders intend to migrate business-critical workloads to the cloud, with digitization driving all of this.

SaaS has emerged as a preferred deployment model for software applications due to its cost-effectiveness, scalability, and ease of implementation. SaaS eliminates the need for upfront hardware and software investments, enabling organizations to reduce IT infrastructure costs. Cloud professional services help businesses optimize their SaaS utilization, ensuring cost efficiency and maximum return on investment.

Platform as a service is in high demand in the market due to its ability to provide virtual infrastructure to various organizations, including storage and network equipment, data centers, app-building tools, servers, etc. PaaS offers users high levels of flexibility and scalability; it also provides easy testing and an easy-to-operate development environment to organizations without significant business costs.

Small businesses are focusing on increasing digital marketing initiatives, so they are turning to PaaS providers to increase their reach to consumers, increasing the demand for cloud-based services. Many companies, such as Logiq Inc., Acuity Ads Holdings, Cardlytics, and Wix.com Ltd., provide software tools and have launched many initiatives to support small businesses. For instance, Logiq Inc., as a part of its various business strategies, has begun to evaluate the spinoff of its AppLogiq enterprise, the firm's cellular commerce platform-as-a-service (PaaS). In its AppLogiq business, Logiq's PaaS service, branded as CreateAPP, enables small and medium-sized companies worldwide to easily create and deploy a native mobile app for their business without technical knowledge or background.

Market Developments:

• Wells Fargo unveiled a new public cloud digital infrastructure strategy in September 2021, involving both Google and Microsoft. The bank's core public cloud provider would be Azure, with Google Cloud handling other business-critical services. Furthermore, in October 2021, Tenacity raised $3 million to make public cloud security accessible to all businesses.
• Comune di Codogno, an Italian municipality in Lombardy, created a cloud-based contact center in less than a week using Amazon Connect to route calls directly to municipality personnel who could answer citizens' queries regarding COVID-19.

Market Segmentation:

BY SERVICES

• Software-as-a-Service (SaaS)
• Platform-as-a-Service (PaaS)
• Infrastructure-as-a-Service (IaaS)

BY DEPLOYMENT MODEL

• Public Cloud
• Private Cloud
• Hybrid Cloud

BY ENTERPRISE SIZE

• Small
• Medium
• Large

BY INDUSTRY VERTICAL

• BFSI
• Telecommunication
• Healthcare
• Government
• Media and Entertainment
• Manufacturing
• Others

BY GEOGRAPHY

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Italy
• Spain
• Others
• Middle East and Africa
• UAE
• Saudi Arabia
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Thailand
• Taiwan
• Indonesia
• Others