Public Cloud Hosting services play a significant role in the growth of all kinds of business processes and help to meet some of the most complex needs. The global digital transformation has seen some regions emerge as Public Cloud hubs with massive revenues.
Data presented by Buy Shares indicates that in 2020, the United States is set to account for almost half of the global Public Cloud Hosting revenue at 47.21%. According to the data, the Public Cloud global revenue is projected to be $95.47 billion with the US accounting for $45.08 billion. China comes a distant second with a projected revenue of $5.45 billion or 5.7% of the global share.
Estimates further indicate that the Public Cloud Hosting revenue will keep growing in the next five years. By 2025, the revenue will stand at $244.37 billion, a growth of 155.96% from this year’s expected returns.
Public Cloud Hosting utilizes the resources of a network of physical servers to offer a virtualized hosting platform. The physical infrastructure is generally owned and managed by the provider. Data security is a major concern for most organizations and Public Cloud Hosting is viewed as the solution. Additionally, the technology saves on money since it does not require capital investment in equipment, no maintenance costs while the pay-as-you-use pricing eliminates wasted spending on unused resources.
Why the US is ahead
The United States high projected revenue is part of the region’s dominance that came after adopting the technology early. The region also has some of the reputable vendors like Microsoft, Oracle, and Amazon among others. Additionally, it is estimated that more than 50% of the government organizations in the U.S. have deployed Public Cloud Hosting giving it a boost.
The Asia Pacific region led by China might offer a new threat to the United States in the near future. The technology is rapidly growing in China and the entrance of new players like Alibaba Group will continue having a positive impact on the regional market growth. Additionally, the formation of the Asia Cloud Computing Association is likely to boost regional growth.
Just like other sectors, the coronavirus crisis had a significant impact on the Information Technology sector. The crisis crippled global economies due to the imposed lockdowns. Under the IT sector, the pandemic has caused disruptions in the electronics value chain posing a risk of product price hikes. At the same time, the disruption accelerated remote working culture and focus on evaluating the end-to-end value chain. Amid the health crisis, work environments that can be operated remotely are likely to benefit from cloud technology for a long period.
Opportunities and challenges in the Public Cloud Hosting sector
During the crisis, many innovation startups utilizing public computing technology came up with solutions to help citizens and governments face the pandemic. Notably, the IT sector and the technology industry, in general, have been projected to spur economic growth out of the crisis.
Several factors are projected to spur the growth of the Public Cloud Hosting market. Rapidly increasing digital transformation among different industries, penetration of internet and mobile devices, and rise in consumption of big data are basic factors propelling growth in the industry.
Public Cloud Hosting technology presents a lot of opportunities for businesses. However, there exist several challenges towards fully rolling out the technology. Implementation of the cloud requires a strategic approach, management details, and professionals to help reduce potential risks, and flaws in the implementation process. Therefore, most entities have to deal with a lack of expertise, security issues, compliance, and sometimes government control and interference.
In general, cloud computing adoption has now gone mainstream and the hype around it has led to high spending. In return, providers will be under pressure to give buyers the value for their money. The cloud computing landscape is also projected to be more complex and competitive. In return, most customers will need help managing multiple cloud suppliers and applications. Already IT teams making ways to embrace cloud-built applications and relocate existing digital assets as the transformation continues.