The cloud services market size was valued at $264.80 billion in 2019, and is projected to reach $927.51 billion by 2027, growing at a CAGR of 16.4% from 2020 to 2027, according to ResearchAndMarkets.
Cloud computing is the practice of sharing network of remote servers which are hosted on the Internet to store, process, share, and manage data rather than on a local server or a personal computer.
The services provided by the cloud computing technology are referred to as cloud services. These specifically refer to a common storage space through which all the devices in the network can access data simultaneously. The use of cloud services not only provides cost benefits but also makes data accessible to all devices in the network at any time and from any location.
Cost effectiveness driving the global cloud services market growth
The most important factor, which is driving the growth of the global cloud services market, is the cost effectiveness. With the deployment of cloud services, organizations can save more than 35% of the annual operating costs.
The other factor includes all the functional capabilities which boost up the business performances of the organizations. In addition to this, upsurge in demand for cloud services due to COVID-19 pandemic boosted growth of the market.
However, data security is the key restrain for the growth of cloud services market as organizations believe that their data is more secure in in-house data centers as compared to a virtual cloud network. The other limiting factors are the data location and data administration, which need to be properly worked out in order to increase the revenue of the market.
Developing economies have gradually grown to become the hub for IT services, which is one of the largest target segments for cloud services thus being opportunistic for the market growth. In addition, substantial increase in the number of small and medium enterprises eventually lead to increased adoption of cloud services in such regions.