Our study provides a detailed analysis of growth factors for the cloud computing industry. Also, identifies prime reasons driving the cloud computing industry growth in the future

1. DRIVE GROWTH IN
CLOUD COMPUTING
INDUSTRY 2020
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
TM

2. Goldstein
Market Intelligence
According to the latest worldwide market study, five
large industry groups are expected to spend a total of
USD 37.52 billion on industry cloud solutions in 2018.
The five industry groups are healthcare, public sector,
finance, retail and wholesale, plus the manufacturing
sector. Among them, manufacturing grew the most,
while retail and wholesale were next to increase their
investment.
Industry cloud growth rates will continue to accelerate
over the next three years, which is very unusual for
multi-billion-dollar markets. This growth is being driven
by rapidly-digitising industries like healthcare, financial
services, and manufacturing, where industry clouds
are becoming the cornerstones for next-generation
growth and innovation strategies.
The overall market reached USD 45.41 billion in 2019
with three of the five groups growing above the market
average of 21.51%. Healthcare provider and public
sector spending are both forecast to grow below the
market average, although their 2019 growth rates were
higher than those for 2018.
©GOLDSTEIN MARKET INTELLIGENCE PAGE 02
INTRODUCTION
More Chief Information Officers and Chief Technology
Officers are embracing hybrid IT infrastructure models
& incorporating multi-cloud solutions.
TM

3. ©GOLDSTEIN MARKET INTELLIGENCE PAGE 03
57% of European enterprises view cloud services as “very
important” to digital transformation. By 2020, the cloud
services segment in Germany is forecast to amount to
USD 20.42 billion and there is a great growth opportunity
in France and Germany for cloud computing services with
low adoption rates of 11% to 12%.
Goldstein
Market Intelligence
TM
Businesses that take advantage of productivity-
enhancing cloud services grow 20% faster than their
counterparts.
0 25 50 75 100 125
PaaS
IaaS
SaaS
Cloud Spending (USD Billion) By Cloud Services, 2020
35.77
46.12
122.76
Adoption of Multi-cloud Strategies by Enterprises
More than 90% enterprises are using 'multiple
infrastructure clouds' for their business operations. The
breakdown below gives a more detailed look into how
enterprises are using multiple clouds today: 80% use
multiple public clouds and one or more private or dedicated
clouds.

4. Goldstein
Market Intelligence
©GOLDSTEIN MARKET INTELLIGENCE PAGE 04
TM
Why Multi-Cloud is Strategic?
Pick the right
cloud tool for
the job
Reduce risk of
service
disruption
Reduce pricing
risk
Key Elements of Multi-Cloud

5. Goldstein
Market Intelligence
©GOLDSTEIN MARKET INTELLIGENCE PAGE 09
In 2019 global IT spending increased 3.21% to USD 3.76
trillion with as-a-service models fueling everything from
data center spending to enterprise software. It's possible
that a large enterprise will consume cloud computing
services from every vendor in this guide. The real cloud
innovation may be from customers that mix and match the
public cloud vendors in unique ways.
Pricing power: Google raised prices of G Suite and the
cloud space is a technology where add-ons exist for most
new technologies. G Suite, which competes directly with
Microsoft's Office 365, is raising its prices for the first
time. G Suite Basic will raise prices from USD 5 per user
per month to USD 6. G Suite Business will go from USD
10 per user per month to USD 12. According to Google, G
Suite Enterprise, which runs USD 25 per user a month,
isn't impacted by the price increase. While compute and
storage services are often a race to the bottom, tools for
machine learning, artificial intelligence and serverless
functions can add up. There's a good reason that cost
management is such a big theme for cloud computing
customers--it's arguably the biggest challenge. Look for
cost management and concerns about lock-in to be big
themes. cloud cost optimization is a big priority for large
companies all the way down to small
businesses. Container adoption may also be contributing
to cost optimization issues.
TM
Cloud computing is driving IT spending overall
Key factors contributed are as follows:

6. 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
About Goldstein Market Intelligence
About the author
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