Cloud Market Share – a Look at the Cloud Ecosystem in 2020

Cloud computing has grown into a vast and complex ecosystem of technologies, products, and services. Giving rise to a multi-billion dollar economy where many cloud providers compete for an ever-expanding cloud market share.



 

As consumers, navigating and understanding this cloud ecosystem is increasingly difficult. Outside the industry giants – Amazon Web Services, Microsoft Azure, and Google Cloud Platform — the cloud market remains a mystery to many.



 

Today, we are going to take a deep dive and demystify the cloud market. We’ll explain the different cloud services, identify the leading cloud providers, and explore their cloud market share in 2020.



 

We’ll also help you to discover how and why enterprises are moving to the cloud, the associated benefits, and the costs involved.



Table of Contents

Understanding the Three Main Types of Cloud Computing

Before exploring the cloud market and the cloud market share, first you must understand the three main types of cloud computing. Each type has its own distinct range of services and cloud providers that make up the market. The three main cloud computing types are:



Infrastructure as a Service (IaaS)



IaaS is an offering of cloud computing where the provider supplies you on-demand access to computing resources such as networking, storage, and servers. Within the providers’ infrastructure, you run your own platforms and applications. This provides a flexible hardware resource that can scale depending on your storage and processing needs.



Platform as a Service (PaaS)



PaaS is an offering of cloud computing where the provider gives you access to a cloud environment in which to develop, manage, and host applications. You will have access to a range of tools through the platform to support testing and development.



The provider is responsible for the underlying infrastructure, security, operating systems, and backups.



Software as a Service (SaaS)



SaaS is an offering of cloud computing where the provider gives you access to their cloud-based software. Instead of installing the software application on your local device, you access the provider’s application using the web or an API.



Through the application, you store and analyze your own data. You don’t have to invest time in installing, managing or upgrading software, this is all handled by the provider.



Within each of these service categories, you have the option of public, private, hybrid cloud solutions:



Private Cloud



A private cloud is where you host on your own data center or intranet. You own, manage, update and upgrade your own cloud ecosystem of server, networking, software, or platform resources. Protecting it all with your own firewall and security solutions.



Public Cloud



A public cloud is where the provider supplies you with access to their data center infrastructure. They are responsible for all management, maintenance, security, and upgrades.



Hybrid Cloud



A hybrid cloud is where you opt to use a mix of both public and private cloud solutions. You are responsible for managing how the two services interact, especially the security of data passing between both public and private cloud setups.



An Overview of the Cloud Computing Market in 2020

The cloud computing market is huge. New data from the Synergy Research Group, across seven key cloud service and infrastructure market segments, operators, and vendors – reports revenues in excess of $150 billion for the first half of 2019. A 24% growth on the previous year.



As big as the cloud market has become, there is massive scope for expansion. Especially when you consider Gartner is projecting worldwide IT spending of $3.79 trillion in 2019.



Taking a detailed look at the segments making up the cloud market, public cloud solutions make up the majority. This aligns closely with the RightScale 2019 State of Cloud report. According to which, 91% of businesses reported using a public cloud service, 72% opting for a private cloud solution, and 69% selecting a hybrid solution.



Based on projections from the IDC, worldwide spending on public cloud services and infrastructure is forecast to double over the next five years. Growing from a $229 billion run rate in 2019 to almost $500 billion by 2023. Driven by a five-year compound annual growth rate (CAGR).



The IDC report identifies SaaS as the largest spending category, capturing more than half of all public cloud spending throughout the forecast period. IaaS is reported as the second largest spending category and is the fastest growing with a projected five-year CAGR of 32.0%. PaaS is the lowest spending category, with the second largest five-year CAGR of 29.9%.



For a more detailed look within the public cloud market we must turn to alternative research and reports.

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