Market Trends of United States Cloud Computing Industry
Robust Shift Toward Digital Transformation Across North America
- The cloud computing market in the United States is witnessing significant expansion, propelled by a robust drive toward digital transformation. As sectors evolve digitally to stay competitive, cloud computing stands out as a crucial enabler of this shift. By offering essential flexibility, scalability, and cost-effectiveness, cloud platforms support digital endeavors and accelerate their broad acceptance.
- Digital transformation often involves adopting advanced technologies, including machine learning, 5G, artificial intelligence, the Internet of Things (IoT), and big data analytics. According to Ericsson, North America is projected to witness its 5G subscriptions surge to nearly 406 million by 2028, up from 166 million in 2022.
- These technologies require substantial computing power and data storage, efficiently delivered through cloud computing. Leveraging cloud services enables businesses to process large data volumes, extract actionable insights, and automate processes, enhancing operational efficiency and driving innovation. Furthermore, by supporting agile development and deployment practices like DevOps, the cloud empowers organizations to innovate and respond to market changes rapidly. This highlights the centrality of cloud services in driving digital transformation strategies across the United States.
- In July 2024, Lumen Technologies and Microsoft Corporation forged a strategic partnership, leveraging the Microsoft Cloud to propel Lumen's digital transformation. Furthermore, in response to the surging demand for its data centers driven by AI, Microsoft has selected Lumen to bolster its network capacity and capabilities.
- In August 2024, Cloudelligent, a cloud technology solutions provider, launched its enhanced Cloud Migration Services. Primarily aimed at accelerating digital transformation, these services cater to businesses across diverse sectors. This move highlights Cloudelligent's commitment to delivering advanced solutions that expedite the transition to cloud environments.
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IT and Telecommunication Sector to Witness the Significant Adoption of Market
- In the United States, the IT and telecom sectors play a significant role in propelling the growth of the cloud computing market. The IT industry is progressively embracing cloud technologies, aiming to boost operational efficiencies, scalability, and cost management. With cloud computing, IT companies can provide infrastructure-as-a-service solutions, platform-as-a-service, and software-as-a-service, all offering greater agility and accessibility compared to conventional IT infrastructures.
- Moreover, driven by a surge in app usage, increased data consumption, and the demand for real-time processing, the IT and telecom sectors have ramped up investments in cloud computing. These investments aim to bolster backend operations, storage, and analytics. Cloud platforms provide the agility to manage rising user loads, boost app performance, and elevate user experience. Consequently, as businesses strive to cater to a swiftly growing mobile audience, the cloud computing market witnesses robust growth.
- According to comScore, in April 2024, the YouTube mobile app led with a 74% audience reach. Facebook, a social media platform, secured the third position with a 64% reach. Gmail, the email service, was utilized by 65% of mobile users in the United States. Meanwhile, TikTok, the social video app, achieved a reach of around 38% during the examined period.
- Telecom providers are increasingly offering integrated solutions, such as edge computing, which bring computing power closer to the data source. This approach reduces latency and enhances efficiency. Hence, the IT and telecom sectors are leveraging cloud technologies and supplying the essential infrastructure and services that foster broader adoption of cloud computing across various industries. Furthermore, with the rollout of the 5G network, telecom firms in the United States are ensuring swifter and more reliable internet connections, pivotal for optimal cloud computing performance.
- In May 2024, Dell Technologies and Ericsson forged a strategic partnership, combining their telecom software and solution expertise to aid communications service providers (CSPs) transform their radio access networks (RAN) to the cloud. This partnership merges Ericsson's Cloud RAN software with Dell's PowerEdge servers, delivering scalable and efficient network solutions alongside tailored transformation strategies.
- In June 2024, Nokia and Google Cloud deepened their collaboration, aiming to expedite the development of new 5G applications. This partnership seeks to bolster Nokia's Network as Code platform by leveraging Google Cloud's AI tools, such as Vertex AI and Gemini 1.5 Pro. Nokia's platform, hosted on Google Cloud, equips developers with essential tools for building 5G applications. These tools encompass software development kits (SDKs), comprehensive network API documentation, a testing sandbox, and ready-to-use code snippets.
