According to GlobalData’s Market Opportunity Forecasts Model, the public and the private cloud computing services together will account for approximately 80% of the overall $256 billion cloud computing revenue in 2023.
Public cloud services are estimated to see a 21 % (CAGR) compound annual growth rate during the outlook period, which is the highest amongst the various cloud product/services offerings in the region.
“Enterprises are looking to streamline the management of their day-to-day operations and gain differential competitive advantage by adopting cloud computing services for their existing IT infrastructure,” said Sunil Kumar Verma, Lead ICT Analyst – GlobalData.
“Smart cities initiatives will be one of the prime catalysts for the adoption of public cloud services, as they are being preferred by the government agencies for transformation of their incumbent IT infrastructure,” added Verma.
Public cloud adoption is also expected to grow, as enterprises continue to leverage it for newer business applications like big data and analytics, asset management, compliance & risk management, and substitute their existing licensed software.
GlobalData’s Market Opportunity Forecasts Model reveals that the adoption of public cloud by the governments for their systems, in addition to increased reliance by industry verticals such as financial services institutions, retailers, media and manufacturing towards a digital native business will act as the key growth drivers during the review period.
Software-as-a-Service (SaaS) will be the prime growth contributor and will account for 51% of the overall public cloud market in 2023, as enterprises focus on cost rationalization by reducing hardware acquisition costs, provisioning and maintenance expenses and other cost areas related to software licensing, installation and support services.
“Cloud services will continue to revolutionize the operational methodology of the enterprises by providing them with an agile business model and scalability along with data accessibility either in a centralized or a distributed remote operating environment,” concluded Verma.