In 2022, the global market for cloud professional services reached a valuation of US$24.95 billion and is expected to experience a significant growth rate in the coming years.
Cloud professional services are focused on providing enterprises with the technical guidance and expertise needed to manage cloud-based infrastructure in a way that allows for flexibility and cost-effectiveness. These services come in the form of different tools and frameworks. These allow for streamlined operations and enhance productivity as a result.
Service providers also generally offer solutions in the form of cloud environments that allow for better automation of the product development cycle,reducing operating costs and human error.
Growth in the cloud professional services industry is driven by several factors, from the rise in remote work and the increased dependency on robotics and analytics tools which require cloud platforms for deployment, to the better business agility and continuity offered by cloud platforms.
The market is segmented using four criteria:
Key Report Findings
The cloud professional services market is growing mainly because more and more industries are focusing on using cloud computing. It has become an important factor contributing to the market's growth.This is because cloud computing allows for better energy efficiency, business agility, and safeguarding critical data and workloads.
On top of that, the increased use of robotics in different industries also requires cloud services for the deployment of robotic applications. Service providers are also using analytics tools, AI, ML, and DevOps in tandem with cloud platforms to create a hybrid environment that allows for better operations of each of these functions.
The increased use of the Internet in daily life is also generating enormous amounts of data, which require huge databases for storage and analytics. Cloud-based servers are the most cost-efficient and secure solution for this problem. Big data storage and analytics are, therefore, also driving growth.
An increase in remote working methods due to the COVID-19 pandemic also increased the demand for cloud computing solutions. While the Russia-Ukraine conflict caused some disruption in growth, the effects are expected to remain in the short-term, and the market is expected to continue expanding in the coming years.
Implementation of Cloud-Based AI and ML Technology
AI and ML have gained immense popularity in recent years and have played a role in transforming various industries. Because of their use in automation, data analysis and intelligent decision-making, these technologies are very frequently used in various industries for improved business outcomes.
However, due to the heavy computational power needed to operate these technologies, cloud computing is frequently used to create and deploy AI and ML models. Being easily scalable, flexible and cost-efficient on the energy consumption front, the cloud professional services market sees a great opportunity due to the increased reliance on these technologies.
Adoption of Hybrid Cloud Strategy for Business Agility
Cloud professional services provide the balance between the benefits of public and private cloud platforms, allowing the flexibility, scalability, and security that businesses need for efficient day-to-day operations. Cloud professional services allow business to carry out everything from design to implementation of cloud architectures, as well as the management and monitoring of these architectures.
Cloud services provide secure connectivity, seamless data flow, and workload mobility, which empowers businesses to enhance their agility, and optimize costs and operational efficiency while maintaining control over their data and applications.
Cloud Data Security
Cloud data security remains a significant challenge for the cloud computing market. A major concern is that of data breaches, specifically due to the large volumes of data hosted on cloud platforms - some of which may be sensitive in nature, and result in compliance issues.
Cloud professional services have to provide effective Identity and Access Management (IAM) to control the problem of unauthorized user access and keep data safe. Data encryption and management is also an essential component of cloud platforms.
Utilization of Multiple Cloud Platforms
The utilization of multiple cloud platforms introduces some operational challenges in the market. Managing and integrating the different environments is a complex process and requires great care to ensure interoperability, resource allocation optimization and consistency in governance and security across the different platforms. Data and application mobility is also a challenge and requires expertise in migration and synchronization tasks.
Cloud Expertise Challenge
Cloud services offer numerous benefits, but fully leveraging them requires specialized knowledge and skills. Unfortunately, many organizations face a challenge because they lack the necessary expertise to effectively utilize cloud services.Difficulty in understanding and implementing cloud solutions hinders the adoption of these services.
The North American market is the largest in terms of market share. Being a digital hub, cloud infrastructure is quickly adopted by organizations and governments, especially in the development of smart cities.
However, due to the large populations found in the Asia Pacific, and the increasing use of the Internet among them, the Asian market is the fastest growing market and is expected to remain so.
Company Recent Development
Some major players in the industry include:
In February 2022, IBM acquired Neudesic, which operates in the cloud services market. In February 2023, they acquired NS1, which operates in the SaaS segment.
In December 2022, Ernst & Young (EY) announced an alliance with Software AG, a German software corporation, to utilize IoT and integration platforms for better business processes.
Accenture bolstered its Cloud First capabilities by finalizing the acquisition of Sentia's business in the Netherlands, Belgium, and Bulgaria in September 2022. As a result, Accenture can offer comprehensive cloud infrastructure across cloud environments.
PwC and HighRadius formed an alliance in September 2022, aiming to drive autonomous technology and digital transformation in accounting and finance processes.
Deloitte expanded its portfolio of cloud applications and infrastructure capabilities by acquiring BIAS Corporation, a prominent player in the Oracle Cloud Infrastructure market, in December 2021. This acquisition strengthens Deloitte's position in the cloud space.
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