Cloud technology is rapidly replacing the legacy infrastructure, and businesses are being pushed more toward shared technology. Hardware sales have not changed, and in many cases, increased because the business hardware entities are replaced by computing platform vendors.
The Synergy Research Group reported in 2018 that businesses such as Amazon, Microsoft, Facebook, and Google, spent more than $ 11 billion on servers, storage, OS, networking, and virtualization software. IDC, in one of its reports recently, reported “historic demand for servers” as organizations are on a spree of rebooting their hardware across markets, and the demand is mostly generated from cloud service providers and businesses building a software-defined infrastructure.
The current cloud adoption is exciting, and with implemented security protocols, the business can move its private or hybrid cloud data entirely on the public cloud. According to Gartner, the public cloud services market is set to grow from $ 227.4 billion in 2019 to $ 266.4 billion in 2020. According to Sid Nag, Research Vice President, Gartner, cloud adoption is becoming mainstream, and the expectations from the cloud investment are even higher. The demand for digital business capabilities is set to be fulfilled by cloud enhanced solutions.
Comparing different computing platforms in terms of revenue, SaaS is leading the market by a large margin. Based on Gartner forecasts this year, the SaaS platform is set to generate revenues worth $ 99.5 billion for public cloud service providers, the IaaS $ 40.3 billion, and the PaaS $ 32.2 billion in 2019.
Cloud is set to become the primary platform to store data, manage applications, and substitute individual hardware. But there will be a shift from single cloud provider to multi-cloud provider, as the requirement-based cloud adoption protocol is followed. The multi-cloud technology will lead the organizations to look for more intuitive managed service for admin, developers, and C-level executives. As per Gartner, 60% of the businesses will be using external service providers’ cloud-managed service for multi-cloud by 2022. Access, management, and security will be some of the upcoming challenges for a vendor’s growth.