PUBLIC CLOUD MARKET ANALYSIS

Market Challenges And Opportunities

Restraints

Clients adopting such forms of services such as public cloud have no control over infrastructure or data provided by such a public platform. The risks associated with usage of public cloud include lack of data security and integrity. Owing to large number of consumers sharing the same hardware resources, information security threats are higher and the date is highly vulnerable to security breaches, resulting in increased risk of loss of confidential data. Moreover, service level policies are enforced on the user by the service provider. Lack of customizability of the services and total reliance of the business operation performance on the internet connectivity are few other challenges faced by this market, which are expected to hamper growth of the public cloud market.

Increasing number of startups are focusing on business enhancement and expansion, which requires high initial capital for development of these resources. As public cloud offers its services for free or at minimal charges in most cases, the demand for these services is rapidly increasing. Moreover, growing volume of data and computing of intensive workloads, owing to emergence of enterprise trends such as Bring your own device (BYOD), Choose your own device (CYOD), Internet of Things (IoT), and Artificial Intelligence (AI), are expected to create a conducive environment for growth of the public cloud market. This service is not associated with any maintenance costs, efforts for infrastructure, and does not necessitate long-term contracts, owing to pay-as-you-go service. These benefits, in turn, are expected to propel growth of the public cloud market.

High demand for these services in financial applications is expected to fuel market growth

Growing adoption of SaaS offerings such as customer relationship management (CRM), human capital management (HCM), enterprise resource management, and other financial applications is increasing, especially in large enterprises. According to Coherent Market Insights’ research findings, around 45% of large enterprise application adoption in the U.S. comprised of software-as-a-service or other such solutions in 2016. This in turn, is expected to drive growth of the public cloud market growth.