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Covid-19 Spurred Up the Use of Cloud Computing with a Chance to Generate 1 Trillion dollar Cloud Ecosystem by 2024

Cloud computing as a tech genre witnessed a massive growth in terms of revenue generation. Cloud system has a chance to generate $1trillion cloud ecosystem by 2024.

The recent outbreak of Covid-19 gave an overall new outlook or approach in the use or utilization of technology or tech-based solutions. After the outbreak of the pandemic caused by the Covid-19 across the different parts of the world, technology started to play a new role and has become much more significant for conducting various activities. Struck by the Covid-19 pandemic several genres of business ventures including IT and ITes, are massively switching to tech-based operations. The technology that is actively assisting such organizations in effectively handling their operations is Cloud computing. Business houses are now switching to cloud based computing systems at a rapid rate.

Recent Market Aspect of the Cloud Computing System

A recent survey was done on the subject line “scenario of cloud computing post-Covid-19 outbreak” which shows a massive change in the realm of cloud computing systems. The report says the Covid-19 pandemic had a huge impact on cloud systems and its various service types such as Infrastructure-as-a-service (IaaS), Software-as-a-service (SaaS), Platform-as-a-Service (PaaS), and Anything-as-a–service (XaaS). As per the report, the size or the market revenue of cloud computing is expected to grow from USD 233 billion in 2019 to USD 295 billion by the year 2021. The Compound Annual Growth Rate (CAGR) of cloud computing during the period of the forecast was 12.5%. These numbers showcase a sharp rise in the use of cloud systems due to the spread of Covid-19.

According to IDC or International Data Corporation, a forecast of the coming five years shows a 21.0% CAGR growth. Moreover, the cloud or “as-a-service” is all set to witness a massive thrust in revenue by the year 2024.

The Global Cloud Market for IT and ITes Firms

The pandemic of Covid-19 has pushed a majority of the IT organizations to adopt the work from home model. Several IT and ITES organizations in order to carry on with the business operations have enabled remote or mobile workforce, adopting enterprise mobility tools & services. Thus, there is a highly increased demand for cloud communication and collaboration services across the globe.

Digital productivity as well as collaboration tool providers such as Microsoft and Zoom is observing a massive stride in the usage across countries especially China, Italy, and the US because of coronavirus. Therefore, there will be continuous growth in the demand for cloud computing infrastructure services and spending on specialized software, communications equipment, and as well as telecom services. This spending will be focused mainly on remotely working staffs of an organization as well as teachers, and in the present day scenario, several ventures are encouraging employees to work from home, and schools are moving to online courses. Such a scenario is gradually giving rise to the enhanced usage of cloud computing services.  

The Energy and Utility Segment on the Use of Cloud Computing

The energy sector is a potential segment for cloud computing. As per a recent study, this particular vertical is expecting to set its foot digitally. But, due to the rapid spread of the COVID-19 pandemic, several nations are locking down to contain and control the spread of the virus. This has led to a significantly declining utility of the so-called energy resources such as oil and gas. Thus, the usage of cloud services for IT service management has also declined substantially. Additionally, due to disrupted supply chains, production is halted, and therefore, the need for technologies such as smart metering is reducing gradually. This has indeed drastically reduced the overall usage of cloud services across the vertical. Thus the utility of cloud services for the energy sector has decreased or declined after the outbreak of Covid-19.