Distributed Cloud Market: Overview
The market size for Distributed Cloud Market was USD 4184.2 million in 2021, and it is projected to grow at a CAGR of 20.1 percent during the forecast period. Distributed cloud deploys numerous clouds that are used to ensure compliance and performance needs, as well as to support edge computing, all while being centrally controlled by the public cloud provider. The market's growth can be attributed to cloud computing's increasing acceptance in various commercial industries. For instance, cloud computing generated more than USD 390 billion in revenue in 2021. Additionally, distributed cloud services have a variety of advantages, such as improved content distribution and storage and quicker material delivery. Additionally, it is anticipated that cloud server deployment and rising internet usage would encourage industry growth over the forecast period. In 2020, according to the World Bank, 60% of people will be using the internet.
It will be difficult for IT businesses to integrate distributed cloud architecture internationally, given the increase in distributed cloud applications and computing. Due to the distinctive architecture of each cloud service provider, such as Google, AWS, and Azure, and a specific requirement for an organization's private cloud deployments and edge computing architectures, designing and executing distributed cloud architecture is difficult. To provide security, visibility, and control of dedicated network support and security, IT firms must combine IaaS capabilities. Microsoft introduced Azure Arc-enabled SQL in June 2021, expanding the capabilities of Azure services to instances placed on the edge or in a multi-cloud environment.
F5 announced the addition of F5 Distributed Cloud Services, which offer security, multi-cloud networking, and edge-based computing solutions on a single Software-as-a-Service (SaaS) platform, to its application security and delivery portfolio in February 2022. IBM launched the hybrid cloud services via IBM Cloud Satellite in March 2021. For users to use hybrid cloud services in real-time and create edge solutions, Lumen Technologies and IBM integrated IBM Cloud Satellite with Lumen's edge platform.
Distributed Cloud Market: COVID-19 Impact
The paper covers the COVID-19 pandemic's effects on the market in detail. The distributed cloud sector has benefited from the pandemic. Cloud management of virtual work is a natural match due to the distributed nature of cloud services. The current pandemic has been made possible by digital productivity and collaboration tools. Cloud services guarantee more trustworthy and secure distant operations for business enterprises. Distributed cloud technologies are now poised to revolutionize the post-COVID world as the effects of the worldwide epidemic continue to alter the nature of work. Along with travel limitations and the risks posed by disease transmission, the global economic system is also evolving. This economic shift has led to cloud computing becoming a standard component of modern company operations. The classic, massive data center-based cloud architecture is expanded by distributed cloud computing to include several geographically scattered cloud infrastructure components. Distributed cloud computing generalizes distributed computing, which distributes processing effort over numerous connected servers to the cloud architecture.
Distributed Cloud Market: Drivers
Growing Attention to Improving User Experiences is Accelerating Market Expansion
Real-time data processing is made possible for enterprises by distributed cloud computing technologies. Businesses can improve user experiences by concentrating on fresh, creative approaches supported by accurate, timely, and consistent data. Distributed cloud computing technologies allow companies to tailor their offerings to forge enduring bonds with their clients. Businesses may improve their responsiveness to client preferences and provide seamless services with the help of this more sophisticated version of cloud services.
Data Recovery and Security Provide a Significant Competitive Advantage
In distributed cloud systems, services communicate with one another via various devices located at geographically dispersed locations while maintaining message integrity, secrecy, and authentication. The distributed cloud offers a method to maintain trustworthy and secure data. Security measures, including encryption, authentication, authorization, and auditing, are part of the distributed cloud system's mechanism. Data recovery is considered accelerating the growth of the distributed cloud industry since distributed systems maintain data even if a machine fails, enabling data to be restored. According to estimates, in 2020, the cloud will host nearly 85% of enterprise workloads. Over 44% of enterprise workloads will reportedly run on public cloud platforms.
Distributed Cloud Market: Restraints
Global Deployment of Distributed Cloud Architecture to Hinder Market Growth
It will be difficult for IT businesses to integrate distributed cloud architecture internationally, given the increase in distributed cloud applications and computing. Due to the distinctive architecture of each cloud service provider, such as Google, AWS, and Azure, and a specific requirement for an organization's private cloud deployments and edge computing architectures, designing and executing distributed cloud architecture is difficult. To provide security, visibility, and control of dedicated network support and security, IT firms must combine IaaS capabilities.
Distributed Cloud Market: Segment Overview
Data Storage Category to Dominate Market Due to Growing Demand for Cloud Services
Due to the growing demand for cloud services with more storage capacity and quicker access to stored data, the data storage category is anticipated to hold a sizable market share over the projected period. Additionally, the distributed cloud distributes user data across a network, enabling data to be located nearer to end users and accelerating transfer speed, reducing network congestion and the chance of data loss. Given that they do not require centralized data centers or costly cooling systems for servers, distributed clouds are also a greener storage alternative. Therefore, it is anticipated that these attributes of distributed clouds will contribute to their rising use in businesses for data storage during the next few years. Nearly 85% of companies have been found to utilize several clouds. From 50% in 2018 to 59.5% in 2019, businesses employing a hybrid approach (fusing public and private clouds) rose.
BFSI Segment to Dominate Market Due to Rising Need For Financial Services
The distributed cloud is excellent for streamlining banking processes and quickly reviewing many transactions, which helps the industry prevent financial crimes and improve customer satisfaction. The BFSI segment is projected to hold the largest market share over the forecast period. Financial companies are embracing distributed clouds more regularly to serve their clients better. These variables are anticipated to accelerate segment expansion across the board during the projection period. By 2025, the BFSI sector in India is anticipated to rank among the top three.
Distributed Cloud Market: Regional Landscape
North America to Dominate Market due to Rising Cloud-Based Services
The market in the North American region is predicted to grow the most throughout the forecast period due to rising cloud-based service usage, rising hybrid cloud penetration, and rising smartphone usage. Additionally, it is anticipated that increased end-user engagement, particularly between the industrial and banking sectors and the top cloud service providers, will spur market expansion during the projection period. For instance, U.S. Bank stated in February 2022 that it would be investing significantly in modernizing its technical foundation by selecting Microsoft Azure as its primary cloud service provider for U.S. Bank apps. Oracle announced opening the first Oracle Cloud Infrastructure (OCI) in the region in June 2022, becoming the first big cloud provider to do so.
Due to the rising number of IT behemoths operating in developing nations and the region's increasing IT sector, the market in the Asia Pacific region is anticipated to experience notable expansion over the forecast period. For instance, it is predicted that India's market for IT and commercial services will be worth over USD 20 billion by 2025. Additionally, the market is anticipated to grow faster in the coming years due to the region's rising smartphone and internet usage. In December 2021, Airtel Business and IBM's introduction of hybrid cloud solutions will benefit over 500,000 milk farmers who work with Milk Producer Companies. These producer companies can keep and retrieve important information about their members securely.
Distributed Cloud Market: Competitive Landscape
Oracle announced opening the first Oracle Cloud Infrastructure (OCI) region in June 2022, becoming the first big cloud provider to do so. Over 500,000 milk farmers who collaborate with Milk Producer Companies will benefit from the hybrid cloud solutions that Airtel Business and IBM will deploy by December 2021. These producer companies can keep and retrieve important information about their members securely.
A few players in the Distributed Cloud Market include IBM Corp. and Amazon web services.
Microsoft Corp., VMware Inc., Salesforces Inc., Pivotal Inc, Cloud Sigma Inc., Google LLC, Alibaba Corp., and Digital Ocean Inc.
Regional Classification of the Global Distributed Cloud Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Distributed Cloud Market
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