Market Trends of Public Cloud Industry
Software-as-a-Service (SaaS) is Expected to Hold Significant share
- Software as a service (SaaS) is a cloud-based model in which a cloud provider develops applications and makes them available to end users over the internet. An independent software vendor (ISV) may contract a third-party cloud provider to host the application in this model. SaaS applications include a billing invoicing system, Customer Relationship Management (CRM), help desk, and Human Resource solutions.
- Organizations are deploying the SaaS model to utilize multiple advantages, including the reduced upfront costs of commercial software, the need to establish software on individual machines, service scalability with a firm's growth, integrations with other software applications, and instant updates to all users. For instance, Dropbox is a real example of SaaS. Cloud storage allows firms to store, share, and collaborate on files and data. The users can sync and back up files to access them from any device.
- The players from various industries are acquiring the market players to expand their presence and enter new markets. For instance, in September 2022, Lyve Global, an Abu Dhabi-based B2B logistics SaaS platform, announced the acquisition of Shopini World, a cross-border e-commerce logistics and solutions provider, to expand its business across the Middle East and North Africa region. The players in the market are looking for strategic acquisitions and mergers to expand their offerings and cater to the rising demand for SaaS in the country.
- Further, in June 2022, Aqua Security, the pure-play cloud-native security provider, today announced the general availability (GA) of cloud-native security SaaS in Singapore, serving the broader APJ region. Customers can immediately take benefit of the data sovereignty, platform security, and flexibility delivered by the SaaS service to prevent cloud-native attacks before they happen. With SaaS (Software as a Service) in Singapore, Aqua customers in government, banking, financial services, and other regulated sectors can leverage the service for comprehensive cloud-native security, risk management, and compliance through an in-region service that addresses their governance and data sovereignty requirements.
- In May 2023, Stibo Systems, a global provider of master data management software, joined Microsoft's Partner Program as an independent software exporter to create and host cloud-based Software as a Service on Microsoft Azure. Stibo Systems improved its cloud services with support and guidance from Microsoft. This integration will enable clients to improve the short and long-term performance of their cloud investments and resources.
- According to Flexera Software, a state of cloud report surveyed 627 in 2023 states that 75 percent of enterprise respondents indicated adopting Microsoft Azure for public cloud usage. AWS, Microsoft Azure, and Google Cloud, or hyperscalers, are among the leading cloud computing platform providers worldwide. Public cloud services offer a geographically distributed network of data centers, allowing businesses to deploy applications and services close to their end users regardless of location. This global reach ensures low-latency access, improving performance and user experience.
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North America is Expected to Hold Significant Share of the Market
- North America is among the leading innovators and pioneers in adopting public cloud. The region has a strong foothold of cloud microservice vendors, which adds to the market's growth. Some include Amazon Web Services Inc., Oracle Corporation, IBM Corporation, and Microsoft Corporation. Due to the growing adoption of advanced technologies, this region is gaining traction in the cloud microservices market.
- Moreover, there is an increasing demand from North American firms, as they have adopted public cloud architecture in financial, e-commerce, and travel services, which helps store information and data cost-effectively and boosts agility, efficiency, and scalability. The use of developed technologies, such as cloud computing, AI, big data and analytics, mobility/social media, cybersecurity, and IoT, among others, has led to innovation and transformation, thereby stimulating growth in the business ecosystem of North America.
- According to a report published by Stormforge, 18% of respondents from North America state that their organization has a monthly cloud spend that ranges between USD 100,000 and USD 250,000. Further, 44% of respondents expect cloud spending to increase somewhat over the next 12 months, while another 32% indicate that they expect their organization's cloud spending to increase significantly over the next 12 months. The United States is one of the major countries in North America, and such huge spending on the cloud would create an opportunity for the studied market to grow.
- According to the United States Small Business Administration Office of Advocacy, in 2022, the digit of small enterprises in the United States reached 33.2 million, accounting for approximately (99.9 percent) of firms in the country. The expansion in the number of small firms in the United States in 2022 reflects constant growth, with a 2.2 percent rise from the previous year(2021) and a 12.2% increase from 2017 to 2022. Such a huge number of SMEs would create an opportunity for the market players to develop new public cloud solutions to capture the market share
- The players in the market are collaborating to provide better services to their customers. For instance, in June 2022, Informatica, an enterprise cloud data management supplier, announced an expanded collaboration with Snowflake, the Data Cloud startup, and new product improvements to boost value for joint users. Users could use the power of the Intelligent Data Management Cloud (IDMC) Platform to integrate a wide range of enterprise application data in the Snowflake Data Cloud with the new Informatica Enterprise Data Integrator, a native application in Snowflake Marketplace that is currently in development.
- Similarly, in July 2023, MRI Software, a global player in real estate solutions, announced that it had expanded its offerings to the Canadian market by launching its first cloud instance in Canada. MRI clients in Canada can now easily access the latest solutions from MRI and host their data in the country, ensuring compliance with privacy and security regulations. Canadian clients can use MRI Agora, the company's next-generation real estate platform, through the new cloud instance. Based on an AI-first foundation, MRI Agora empowers businesses to automate mundane tasks through connected data and shared services. MRI Agora Insights unearths actionable portfolio trends to drive better business decisions.
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