Cloud Computing technology is a critical enabler of the Industrial Revolution 4.0. As the new Industry Revolution starts the ignition, cloud computing is effectively supporting the developments on the Internet of Things (IoT), automation, and robotics.

1. FUTURE OF CLOUD
COMPUTING SECTOR
Goldstein Market Intelligence
A U G U S T 2 0 2 0
W R I T T E N B Y :
Dennis Abraham
Vice President
Goldstein Market Intelligence
Goldstein
Market Intelligence
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Published by

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Market Intelligence
©GOLDSTEIN MARKET INTELLIGENCE PAGE 02
MARKET OUTLOOK
Worldwide spending on cloud computing services
reached USD 151.32 billion in 2018, a boost of 21.48%
from USD 124.56 billion in 2018. Driven by the fact that
organizations across all industries, from financial
services to healthcare, are transitioning to being
technology providers.
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Top 10 cloud service providers - Alibaba, Amazon,
Baidu, Facebook, Google, Microsoft and Tencent–
collectively spent more than USD 61 billion in 2019 on
data center infrastructure.
AWS is poised for further growth as Amazon invests in
new enterprise sales and marketing resources, expands
its AWS Outposts, and launches AWS Local Zones.
©Goldstein 2020 | August Update

3. Microsoft Azure gained more
ground in enterprise accounts and
expanded its channel reach.
Microsoft also worked with
channel partners to push
customers to adopt Azure as
support for Windows Server 2008
came to an end. Google Cloud
succeeded in generating new
enterprise customers and
developing its network of channel
partners. Alibaba Cloud remained
the leader in China as growth took
off. Alibaba is looking to expand
its customer base across the rest
of Asia Pacific and Europe.
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Market Intelligence
SaaS
62.4%
IaaS
25%
PaaS
12.6%
©GOLDSTEIN MARKET INTELLIGENCE PAGE 02
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Saas
62.4%
Paas
12.6%
Iaas
25%
Key Findings
Cloud technology is a critical
enabler of the Industrial
Revolution 4.0. As the new
Industry Revolution starts the
ignition, cloud computing is
effectively supporting the
developments on the Internet of
Things (IoT), automation and
robotics. For the customer,
industry cloud services can
provide benefits such as lowered
entry barriers to cloud adoption,
cost efficiencies, speed, business
agility, future-proofed solutions,
data security and compliance with
specific industry requirements.
In 2019, around 38.54% of
companies are already using
industry cloud services and
approximately 20% of them plan to
do so within the next 2 years.
Salesforce is the top choice for
cloud services in IT & technology
companies. While educational
sector prefer StudyRoom over
other cloud services.
Market Barriers: Challenges with
migration/adoption, difficulty
integrating with existing business
processes and cost were the three
most negative outcomes from
using industry cloud services.

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Market Intelligence
In addition to that, major
challenges that companies cite in
adopting the cloud are comfort
levels that bandwidth over Internet
or other networks will be adequate
for large data transfers and for
real time information exchanges
with on premises applications;
concern about cloud performance;
and fear of a loss of control.
Enterprise Resource Planning
(ERP) and Customer Relationship
(CRM) software are the most go to
(popular) applications provided by
the cloud. Accounting for more
than 60% of total usage, Software
as a Service (SaaS) is one of the
most in demand methods used for
leveraging cloud computing. It
helps the vendor in controlling the
application and provides better
support. For users, it permits
remote access and easy
installation.
data are the primary drivers
fostering the market growth. The
development of next generation
industrial solutions will be cloud
enhanced and require cloud
platform to showcase their digital
business capabilities. Rise in
adoption of Internet of Things
(IoT), edge computing, 5G, use of
real time analytics enabled by
Artificial Intelligence (AI) and
Machine Learning (ML) is likely to
boost the utility of this computing
technology among organizations.
Global Cloud Computing market
size was valued at USD 151.32
billion in 2018 and is expected to
expand at a Compound Annual
Growth Rate (CAGR) of 23.86%
from 2017 to 2025. Factors such
as growing digital transformation
among industries, rising
penetration of internet and mobile
devices across the world, and
increase in consumption of big
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5. Goldstein
Market Intelligence
Goldstein Market Intelligence helping businesses to be
successful at strategy and take informed decisions to
grow the business in future. Goldstein Market
Intelligence is one of the leading professional services
firms, providing Intelligence Services, Consulting &
Advisory and research related services to clients. We,
at Goldstein Market Intelligence practice works side by
side with chief executives and their teams to create
effective strategies and secure alignment across the
organisation.
Dennis Abraham Ph.D, senior vice president at Goldstein
Market Intelligence, leads GMI's syndicated health and
wellness research. Before joining Goldstein Market
Intelligence, Dennis held a variety of senior leadership
positions in global and regional consulting roles covering
consumer and retail insights across a broad range of
healthcare categories. Dennis has been providing cross-
category strategic insights to healthcare brands for over 12
years on topics including digital disruption, ecommerce, and
healthcare technology. Dennis holds a Ph.d from Havard
University.
©GOLDSTEIN MARKET INTELLIGENCE PAGE 09
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