Due to reasons including the practical ability of cloud computing to boost business performance in major businesses, the growing need for hybrid models & Omni-cloud systems, and pay-as-you-go models, the cloud computing industry is anticipated to develop. Additionally, cloud services have grown in popularity in underdeveloped nations as companies have been forced to enhance their digital operations. Government initiatives to safeguard data security and integrity are also helping the sector to expand. Additionally, the COVID-19 epidemic has increased the use of cloud computing and hybrid work paradigms.
These new digital business solutions' underlying resources are accessible in a flexible, on-demand manner thanks to cloud-based architecture. Across industries, the technology is useful for supply chain management (SCM), online transaction processing (OLTP), and enterprise resource planning (ERP). For instance, IBM is switching to SAP S/4HANA®, SAP's cutting-edge ERP system, to manage work involving more than 120 countries, 1,000 legal entities, and numerous IBM businesses in the areas of software, hardware, consulting, and finance.
To increase communication between government organizations, regulators, small and medium-sized businesses, and SaaS providers, Google Cloud and DSCI will work together to establish a platform. Cloud computing provides quicker and more effective ways to manage commercial operations in response to shifting market circumstances. It streamlines the technology consumerization process. It has opened previously unimaginable opportunities to develop very engaging customer experiences.
With the help of the cloud, people and businesses have changed their behavior, and multiple business lines are now able to get things done by skirting IT regulations. Fundamentally, cloud trends are influencing how businesses spend, make digital business decisions, and choose vendors and technologies.
American Airlines was able to upgrade its IT stack, incorporate DevOps principles, and improve agility thanks to an open and adaptable IBM cloud platform. The widespread adoption of cloud-based systems by small and medium-sized businesses is propelling market expansion. Additionally, because cloud computing may streamline technology processes and increase government productivity, many developing countries' governments are investing in cloud computing delivery methods.
For instance, the Data Security Council of India (DSCI) and Google Cloud worked together in November 2022 to demystify cloud security and make it possible for the Indian government and commercial businesses to utilize cloud computing.
Businesses are transitioning to adopt hybrid clouds in their working settings. The key benefit of the hybrid cloud is agility. To gain agility and a competitive edge, businesses are merging public, private, and on-premises resources. For instance, the interfaces between Microsoft's Azure Arc hybrid and multi-cloud management solution and the Azure Machine Learning (ML) and Azure Kubernetes Service (AKS) services have been improved publicly. By extending the Azure platform, users may create apps and services that function across data centres, the edge, and many clouds.
Organizations are in more need of solutions that let workers work securely and effectively from a distance. Providers provide specialized solutions based on their clouds in a secure, fast, and cost-effective manner to enable remote work for regular employees, contact centre agents, and creative professionals. As an illustration, Zscaler just launched the Cloud-Native Application Protection Platform (CNAPP), a brand-new Posture Control tool that runs on AWS. By substituting several point security products with a single, integrated platform, the company's new CNAPP platform enables DevOps and security teams to expedite cloud adoption while reducing operational complexity and overhead.
Organizations are being forced by rapid digitization to update their infrastructure and application landscape to increase cost effectiveness and business agility. Organizations may successfully support their core business operations, migrate business workloads to a cloud platform, and reduce network latency by implementing cloud solutions and services. To strengthen their position in the market, major suppliers are introducing new cloud solutions, services, and workloads as well as upgrading the capabilities of their present ones. To give enterprises a consistent data platform, database, and data analytics portfolio, Google Cloud, for instance, announced three solutions in May 2021 called Datastream, Analytics Hub, and Dataplex.
Platforms, software, and infrastructure are made available via the cloud computing technology, which makes it vulnerable to several types of data breaches. Customers will voice security concerns about outsourcing their data to the public if they are confident that security procedures are in place. Even though cloud service providers take great care to safeguard their clients' data, there have been enough data breach incidents to cause issues for even the most well-known companies. For instance, a security lapse at Flagstar Bank, a US-based financial organization, exposed the private data of as many as 1.5 million customers.
Market Research Future predicts that in 2022, the Cloud Computing Market Size will be worth USD 450.9 billion based on all these criteria. The market for cloud computing is anticipated to expand from USD 534.4 billion in 2023 to USD 2082.2 billion by 2032, with a compound annual growth rate (CAGR) of 18.53% over the five-year forecast period.