Until this year, experts predicted that companies would use cloud technology more. For example, a 2018 study by Cisco identified growth of data center virtualization. Clouds were expected to account for 94% of the workload in 2021. However, the projections could not account for the impact of the COVID-19 pandemic. Let us see how it affected the market.
According to a study by Canalys, in the first quarter of 2020, the cloud technology market reached $31.0 billion.
Organizations move to the clouds to set up remote activity. Services like Zoom have become incredibly popular, but they would not be able to work without the extra cloud capacities.
Flexera has polled 187 companies and found out that more than a half of its respondents will be using clouds more actively than planned due to the pandemic.
On the other hand, business activity has reduced globally. Tourism, transportation and processing industries are cutting their budgets and avoid large cloud projects.
IDC has published new market forecast for cloud technology. The forecast takes into account these contradictory factors: the growing demand for cloud capacity and the economic crisis. IDC predicts that in 2024, the total annual market growth rate will be 8.4%. The cost of cloud infrastructure will amount to $100.1 billion. Organizations will continue their transition to cloud technology, and this is a long-term trend.