Market Trends of Cloud Backup Industry
BFSI Expected to Exhibit Maximum Adoption
- The banking industry is increasingly embracing digital banking and investing solutions, which is increasing demand for Cloud storage/backup in the BFSI sector. Further, some financial sector businesses are transitioning to cloud technologies to obtain a competitive advantage, enabling innovation, customization, and security.
- Further, Government and private organizations are collaborating with many companies to anticipate new growth opportunities in the market over the next five years. For Instance, UBS and Microsoft Corp have expanded their collaboration to boost UBS's public cloud footprint over the next five years. UBS (multinational investment bank and financial services company) intends to operate more than half of its applications, running on Microsoft Azure, including critical workloads on UBS's primary cloud platform. The partnership furthers UBS's cloud-first strategy and the modernization of its global technology estate.
- For instance, IBM is using a Hybrid Cloud to Help Two European Banking Groups Go Digital. Rural Services Informaticos (RSI), a Spanish banking IT services provider, will increase its digital product and service offerings using hybrid cloud technology and industry expertise from IBM and Red Hat to boost its digital products and service offerings through a Cloud Office platform. Hence, many vendors are investing money in hybrid cloud solutions to eliminate the need to manage hosts, maintain, update, and scale service operations. These developments are projected to increase the usage of cloud backup solutions in the BFSI sector.
- Furthermore, the growing number of data breaches in the banking sector is driving banks to use cloud backup solutions that will allow them to recover from any disaster. Public cloud solutions provide an enhanced backup resource to ensure business continuity despite a disaster.
- The growing trends for cloud-based real-time payment solutions can be attributed to their flexibility in providing real-time payment insights to retailers. The growing adoption of digital payment methods in BFSI globally is anticipated to drive market growth over the next five years. According to an IBM survey on Cloud usage by organizations, Microsoft Azure has the highest percentage of 56% of cloud usage in the last year.
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North America Expected to Dominate the Market
- With the early adoption of technologies across various end-user verticals and the presence of market leaders in the region, North America stood as the leading regional market and is expected to continue its dominance throughout the forecast period. Also, early adoption of new technologies, considerable investments in R&D for cloud-based solutions, and enhanced IT infrastructure are expected to drive market growth further.
- The United States is anticipated to occupy a crucial portion of the demand for cloud-based storage/backup solutions over the next five years. A significant driver behind the investments in the market is the continuous evolution and application of new technologies to unlock volumes that were previously considered non-commercial. With a series of investments across healthcare, retail, communications, and manufacturing applications in the country, the market for cloud-based solutions is expected to witness significant growth over the next five years.
- The country has made multiple efforts to modernize its infrastructure. To achieve this, the US Army planned to spend up to USD 249 million to deploy private cloud computing services and data centers. General Dynamics, HP, and Northrop Grumman were among the service providers selected for the Army Private Cloud contract, providing cloud computing services to consolidate data centers using a secure private cloud.
- In the United States, the adoption of cloud-based computing is increasing rapidly, owing to which the data centers in the country are also witnessing an increase. According to Credit Suisse, the United States currently accounts for the highest number of hyperscale data centers worldwide, holding more than one-third of the total hyperscale data centers in the country.
- Furthermore, the rise in government initiatives within the region is also helping the market to grow considerably throughout the forecast period. According to the US Office of Management and Budget, For the 2023 fiscal year, the U.S. federal government allocated around 24.4 billion U.S. dollars for major federal IT investments. The total amount of spending on IT is expected to amount to some 87.4 billion U.S. dollars in 2023. Further, According to Government Technology Agency (Singapore), The Singapore government intended to spend SGD 3.8 billion on information and communications technologies in the fiscal year 2022. Such huge IT spending by the government agencies would create an opportunity for the cloud solution providers to develop new solutions to cater various needs of the government bodies.
- Moreover, the government of Canada has adopted a "cloud-first" strategy, whereby cloud services are identified and estimated as the principal delivery option when initiating information technology investments, initiatives, strategies, and projects. The cloud will also let the government harness the innovation of private-sector providers and thus make its information technology more agile. Such initiatives are expected to offer plenty of opportunities to the cloud backup market, as this model enables private cloud security and public cloud flexibility.
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