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The global cloud services market increased spending on infrastructure services by an average of 32% in the last quarter of 2020.
Demand for cloud services remained strong across all enterprise customer segments, including industries most affected by the pandemic, such as retail and manufacturing. “The pace of digitization, led by the cloud, is gathering pace. Enterprises are now more confident in freeing up budgets for business transformation.”
This is the largest quarterly expansion as continued pandemic constraints drove intense demand for cloud resources to enable remote working and learning, e-commerce, content streaming, online gaming and collaboration. At the same time, a gradual recovery in economic confidence spurred cloud investments by organizations across industry segments to drive digital transformation. Cloud vendors are expanding their investments in channel partnerships to maintain high demand rates and support customers, which will be critical for project deployments in 2021 and beyond.
In 2020, total spending on cloud infrastructure services grew 33% to US $142 billion, compared to US $107 billion in 2019. Demand was higher than expected, despite an initial slowdown in large projects led by consultative entities.
The launch of new vertical partner competencies, further expansion in distribution to drive SMB adoption, and new partnerships as it expands its hybrid cloud strategy.
Demand for cloud services remained strong across all enterprise customer segments, including industries most affected by the pandemic, such as retail and manufacturing. “The pace of digitization, led by the cloud, is picking up speed. Enterprises now have more confidence in freeing up budgets for business transformation.” “Large projects that were postponed earlier in the year are being prioritized, led by application modernization, workplace transformation.” “Even those under the most pressure are diverting investments to the cloud, opening up new revenue streams and diversifying business models.”
At the same time, small and midsize companies continue to turn to cloud services to maintain operations and control costs. The approval of COVID-19 vaccines and the start of mass vaccination programs will further increase business reliance throughout 2021, while remote working and learning will continue. This will maintain reliance on cloud services and drive spending.
The technology channel, from global systems integrators and MSPs to resellers and distributors, is playing an increasingly important role in driving cloud growth worldwide. All of the major cloud vendors are increasing their investments in the channel, both to leverage consulting and managed services capabilities. Microsoft’s recent announcement promoting its Cloud PC is a definitive endorsement of the cloud, and a farewell to the PC as we know it now.
We will soon see the effect this will have on the PC as the base computer we all work with, because if the desktop and applications are going to be in the cloud, why do you need so much memory, processor or hard drive on the computer you connect to?
Source: Canalys, Nubeprint