The cloud computing industry is gradually slowing down but still dominates
What is the current industry growth rate for cloud computing? And what are the signs that these growth rates may start to slow in the next few years? Any technology, product, or service will become so popular that it develops a trend in which it is difficult to determine whether it actually has its perceived value or causes the market to overheat. The huge popularity of cloud computing may make it an over-estimated technology and product that may make industry analysts think it will grow faster than it actually is. The following is a forecast of the current industry growth rate for cloud computing and a discussion of the signs that these growth rates may start to slow in the next few years. How fast is cloud computing growth? For a number of reasons, companies are turning to cloud computing. One of the key issues is that people think that the security of cloud computing is better than the security of on-premise facilities. This understanding has been further developed. Since the organization decided to adopt cloud computing is the right choice, its market is naturally expanding. According to a forecast released by research firm Gartner in October last year, the cloud computing market is expanding rapidly, especially in the cloud computing hosting field, which is technically called infrastructure as a service IaaS, as well as platform as a service PaaS, and software. That is to serve SaaS. There are many other types of "service" solutions (such as disaster recovery as a service, DRaaS), but other types of products are among the main service categories. Gartner expects IaaS' compound annual growth rate (CAGR) to grow at 23.31% by 2020. Analysts' estimates show that the cloud computing market in 2017 was $260.2 billion, compared to $219.6 billion in 2016. Gartner predicts that the public cloud market will grow from $153.5 billion to $186.4 billion worldwide, with a compound annual growth rate of 21.4%. According to a survey conducted by Gartner Research Director Sid Nag, the development of SaaS has exceeded the forecast of previous years, and its growth is worthy of attention. However, what people should understand is that their growth rate may be considered too fanatical. For example, consider another way to look at cloud computing hosting growth is to consider how much the market has expanded before the end of the year. Gartner's estimate is that the cloud computing market will continue to grow from 2016 to 2020, with growth of $25.4 billion, $34.7 billion, $45.8 billion, $58.4 billion, and $72.4 billion, respectively. If you divide $72.4 billion by $25.4 billion, you can see that Gartner expects the market to reach 2.85 times in 2016 by 2020. As can be seen from this prediction, the growth of cloud computing is very fast. Gartner also released a survey report in April this year, which showed that the speed of cloud computing began to slow down, which is somewhat inconsistent with the strong market forecast previously announced. The new survey report shows that from 2017 to 2018, the cloud computing market will grow slowly with a growth rate of 18.5%. The Software as a Service (SaaS) market is expected to grow 21% from 2017 to 2018. Gartner predicted in October last year that infrastructure-as-a-service (IaaS) will reach $72.4 billion in 2020. The new report data shows that by 2020, the IaaS market will reach $67.4 billion. Similarly, Gartner has adjusted its overall market forecast for 2020 from $414.4 billion to $262 billion, a significant reduction in its size. To understand these growth expectations, here is a brief comparison of the other two industries, reviewing data from other fast-growing industry sectors, such as the Internet of Things (IoT) and 3D printing. According to Grand View Research, the annual compound growth rate of the Industrial Internet of Things in 2025 will reach 27.8%. Taking into account the development of the entire market, IDC predicts that the global Internet of Things (IoT) will grow at a compound annual growth rate of 14.6% by 2021 (these figures were released in December 2017). 3D printing is another technology that is widely used (and over the past few years). According to MarketsandMarkets, the global 3D printing market will grow 25.76% from 2017 to 2023, which was released by analysts in July last year. IDC's estimate of the 3D printing market is not as optimistic as MarketsandMarkets, but it is still impressive. IDC expects the 3D printing market to grow at a compound annual growth rate of 20.5% by 2021. Cloud computing is going downhill? Is this a ridiculous idea? Jaroslaw Czaja, CEO of Polish software developer Future Processing, is one of the few thought leaders who currently believe cloud computing may slow down. Czaja pointed out that the way the cloud computing market develops is unknown, so people can only make informed guesses. Czaja cites interest and deployment extensions for machine learning and IoT solutions, enabling organizations to collect more and more incredible big data. The speed at which these data are obtained continues to rise. At the same time, businesses and consumers expect higher quality and faster performance, so it's clear that if they want to keep up with or ahead of their competitors, they must constantly improve the products and services they offer. Devices within the Internet of Things must respond immediately to any requests they submit. Edge computing is also serving the Internet of Things because it means that these devices may be able to get processed data faster. In addition, cloud computing is not yet ready for the amount of data storage that needs to be processed in five years, as more smart devices and other connected products are expected to appear. But what people expect is that cloud computing is still important, and only the most important data will be exchanged with the cloud, and after that, the results will be sent from the cloud to all devices for development throughout the environment. As the above predictions point out, cloud computing is now expanding at a faster rate. Czaja acknowledges that cloud computing will continue to grow rapidly, but other technologies will grow and sometimes will be replaced. Czaja is not the only person to make such a statement that cloud computing may be ready for a decline in growth in just a few years. According to Jonathan Taylor of ManpowerGroup, with the rapid development of the edge computing industry and the Internet of Things, the demand for cloud computing talent in the industry may begin to decrease. In these assessments, edge computing is considered a threat to cloud computing. However, cloud computing is still still a major part of the market, and these different types of networks have a large amount of data in the IT field. Cloud computing is not the only type of server that people want to implement (and possibly manage) through a hosted service or hosting center. In other words, it is not a direct confrontation between cloud computing and traditional data centers, and the various external services offered may be valuable.
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