Wednesday, June 19, 2024

Cloud Computing Market Projected to Reach $474B in 2022

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STAMFORD, Conn. — The global cloud computing market should grow to $474 billion in 2022, an increase of over 16% from $408 billion in 2021.

The ongoing pandemic and surge in digital services are “making cloud the centerpiece of new digital experiences,” according to the market research firm Gartner last month.

“There is no business strategy without a cloud strategy,” said Milind Govekar, distinguished VP, Gartner. “The adoption and interest in public cloud continues unabated as organizations pursue a cloud-first policy for onboarding new workloads. 

“Cloud has enabled new digital experiences, such as mobile payment systems where banks have invested in startups, energy companies using cloud to improve their customers’ retail experiences, or car companies launching new personalization services for customer’s safety and infotainment.”

The use of cloud-native technologies will be “pervasive, not just popular,” Gartner said. 

Over 85% of organizations are expected to embrace a cloud-first principle by 2025. Those organizations will “not be able to fully execute on their digital strategies” without the use of cloud-native architectures and technologies.

“Adopting cloud-native platforms means that digital or product teams will use architectural principles and capabilities to take advantage of the inherent capabilities within the cloud environment,” Govekar said. 

By 2025, Gartner predicts over 95% of new digital workloads will be deployed on cloud-native platforms, up from 30% in 2021.

Organizations will turn more to a product-oriented operating model, where the “entire value stream of the business and IT will have to be aligned by products.” The shift will create more roles and responsibilities, such as site reliability engineers and product managers.

Cloud-delivered secure access service edge (SASE) is the fastest growth opportunity in the networking and network security markets, according to Gartner.

As most traffic from branches and edge computing locations will not go to an enterprise data center, IT leaders will increasingly use SASE to secure the “anywhere and anytime” access needs from users and devices.

In 2022, Gartner predicts end-user spending on SASE to total $6.8 billion, up from $4.8 billion in 2021. 

By 2025, over 50% of organizations are expected to have explicit strategies to adopt SASE, up from less than 5% in 2020.

“Instead of shipping all traffic to central security appliances, CIOs and IT leaders must bring security to the sessions, instead of bringing sessions to the security,” Govekar said.

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