Cloud Computing Market Growth 2021-2022
According to Gartner, the public cloud services around the world witnessed a growth of 23% between 2020 and 2021, going up from $270 billion to $332 billion. Cloud application services or SaaS solutions are the biggest drivers of cloud computing growth.
The global pandemic forced numerous businesses to shift the mission-critical workloads to the cloud. It also led to increased adoption of cloud solutions like Microsoft Azure, Amazon Web Services (AWS), Office 365, IBM Cloud, etc. In addition, technologies like edge computing, virtualization, and containerization are becoming the new norm.
To be precise, CXOs worldwide are showing more interest in cloud computing than ever.
Latest Cloud Computing Trends 2022 (Market Predictions)
In this write-up, let's explore some of the biggest cloud industry trends in 2022 based on research by market leaders and industry experts.
1. Cloud Industry Continues to Thrive
Like the previous many years, the cloud computing market is continuously growing this year as well. For those wondering how fast is the cloud market growing, the latest cloud computing statistics by Gartner show that the spending on cloud services globally will be more than $482 billion this year.
Infrastructure as a Service (IaaS) lies at the backbone of every possible mainstream service that we see today. Social media platforms, video streaming solutions, autonomous cars, the infrastructure required for the internet of things (IoT), etc., are some prominent examples of IaaS applications.
Furthermore, emerging networks like Wi-Fi 6E and 5G will also rely on the cloud for streaming data of different types. The availability of cloud-based gaming platforms will also experience massive growth in 2022.
For instance, Amazon Luna and Google Stadia are some popular gaming platforms based on cloud, virtual reality (VR), and augmented reality (AR). As these platforms become mainstream, their pricing will go cheaper.
Is cloud computing still growing?
Here are some important cloud adoption statistics revealing whether cloud computing is growing or not.
- 36% of businesses spend over $12 million annually on the public cloud.
- 90% of businesses plan to increase investment in cloud following COVID-19 pandemic.
- AWS is the market leader in the public cloud but Microsoft Azure is the fastest-growing player.
- 83% of businesses spend more than $1.2 million annually on the public cloud.
So, these are a few significant cloud adoption trends in 2022 that you must know about the industry.
2. Artificial Intelligence (AI) to Complement Cloud Computing
Cloud computing and artificial intelligence (AI) together are more profound than electricity or fire. These technologies are having a great impact not only on the way businesses operate but also on society.
AI-based platforms and solutions need massive processing power and data bandwidth. Cloud computing powers these requirements. Modern trends like AI filters on social media platforms, intelligent data analytics, cognitive learning & science, etc., live in the cloud.
Cloud AI has been here for the last few years. In 2022, artificial intelligence in cloud computing will become more inseparably interwoven and drive the cloud computing future trends. Machine learning, deep learning, edge computing, and all similar technologies have a strong base on cloud technology.
Role of Cloud Computing in AI
How AI is used in cloud computing or vice versa?
Cloud computing and AI complement each other on various points. For instance, the cloud allows businesses and service providers to be more flexible, agile, and reduce infrastructure management budget.
Artificial intelligence adds more benefits to it by enabling smart management, intelligent analytics, streamlining data, optimizing workflows, and delivering real-time insights for multiple purposes.
SaaS vendors and CSPs are adding a layer of AI to their business to bring modern functionalities to customers, provide faster support, and offer personalized solutions.
3. Serverless Computing to Gain Popularity
Serverless computing in cloud computing is a new concept that is yet to become prevalent. This year, this is going to gain traction. Also called function-as-a-service (FaaS), this will be among the top cloud computing trends and technologies in 2022.
Microsoft Azure Functions, AWS Lambda, IBM Cloud Functions, etc., are the main serverless computing services in the market today. More organizations are adopting it because FaaS offers the best of pay-as-you-go cloud solutions where the infrastructure is completely scalable. On the basis of the requirements of the application, it can be scaled and used flexibly.
What is serverless computing in cloud?
As the name suggests, serverless means businesses don't need to manage the servers on their own. Like managed hosting, the responsibility of servers in this technology lies with the cloud provider.
Key features of serverless computing include high availability, scalability, pay-per-use billing, enhanced agility, and cost optimization. Here, the businesses don't need to manage the provisioning of capacity, patching, and other tasks related to infrastructure. It allows them to keep their focus on building top-notch cloud-based apps.
The rise of serverless computing will be a true game-changer in the industry because of the various benefits and use cases. If you are a cloud reseller, it is time for you to add FaaS solutions like Azure Functions and AWS Lambda to your portfolio. In addition, the adoption of a cloud subscription billing management software can make life easier for you and help you grow your business.
4. The Rise of Edge Computing
The role of edge computing is to bridge the gap between enterprise apps and data sources. These data sources can be IoT devices, local edge servers, etc. We are moving towards the era of 5G networks and the massive growth of connected devices. Here, edge computing technology works like a distributed computing framework and enables deep insights in real-time.
Gartner reports that 75% of the data processing by 2025 will happen outside the cloud or data centers. To bring together the data from varied connected sources to the applications, edge computing comes into play. It will offer a number of key benefits, such as availability of good bandwidth, increase in response times, and quicker insights.
Example of edge computing
Suppose there is a smart machine or device in a company with critical functionalities. If the machine takes a lot of time to make decisions and process the data, it can lead to losses. For instance, there are short circuit issues at the warehouse and this information takes around 30 minutes to be processed to the authorities. This information will not be useful as the losses will occur.
What edge computing does is keep the connected devices on the edge so that the data can be processed in near real-time. Hence, its adoption and implementation are on the rise, which makes industry experts place edge computing on the list of cloud computing trends and technologies in 2022.
5. Enterprise to Adopt Hybrid Cloud Approach
More and more enterprises are adopting a hybrid cloud model to get rid of the challenges with traditional infrastructure. Typically, a hybrid cloud is a combination of public cloud and private cloud. It helps in optimizing efficiency, agility, and costs.
Other key benefits of hybrid cloud computing include faster performance, high availability, flexibility to expand as and when required, and high security. In 2018, the global hybrid cloud market was valued at $44.6 billion. It is predicted to grow at a CAGR of 17% and reach $97.6 billion by 2023.
Flexera reports that 78% of enterprises are already following a hybrid cloud approach, using a combination of 2.6 public clouds and 2.7 private clouds on average.
The reasons behind the further growth of hybrid cloud adoption in 2022 will be to set up a dynamic business environment, save on costs, and demand for achieving high productivity & efficiency.
Cloud providers or resellers will add more solutions to their portfolios to cater to this demand. The use of cloud billing software like Xtributor will be icing on the cake to onboard more clients and automate the subscription and billing management.
Suggested Reading- 6 Impactful Ways To Scale Up Your Cloud Reseller Business
6. SaaS to Become Largest Segment in Cloud Computing Market
Software as a Service (SaaS) is the largest segment in the cloud market when it comes to annual spending around the world.
SaaS models are becoming the preference for an increasing number of businesses for the numerous benefits it offers. Among the cloud computing future trends, SaaS enables flexibility, cost-effectiveness, scalability & integrations, data analytics, operational management, and more.
From 2020, the demand for SaaS applications witnessed fast growth because of the remote working culture and demand for video conferencing & collaboration software. It was the year when the explosive growth of SaaS businesses started. The market value of the top 10 SaaS companies globally had hit the milestone of $1 trillion for the first time.
Adobe, Salesforce, Shopify, Intuit, ServiceNow, and Square are the leading SaaS companies in the market.
Along with this, more software vendors and ISVs will use B2B SaaS subscription management software to make their growth strategy robust.
7. Adoption of Subscription Management Platforms
Businesses in the cloud business have high-profit opportunities in 2022 because of the rise in cloud adoption by businesses of all sizes. As the statistics in this write-up reveal that the market is thriving at a fast pace, startups and business owners are looking to make the most out of it.
Cloud providers like Microsoft Azure, Amazon Web Services (AWS), and Google Cloud have their partner programs. Businesses can become partners to resell cloud services at a margin and do a profitable business.
For instance, Microsoft's Cloud Partner Program (CSP) is one of the most sought-after opportunities. As a partner, the businesses sell various cloud solutions like Azure, Office 365, Dynamics 365, and more.
However, customers can choose to buy these services on varied billing models, like subscription, pay-per-use, etc., and on a monthly, quarterly, or annual basis. This makes it challenging for CSPs to manage the subscription and billing. Additionally, they also need to provide support to customers, manage leads and sales, and explore new growth opportunities.
To tackle these challenges, they are looking towards cloud billing software. Such software or platform can automate the entire process from onboarding the customers to efficient management of provisioning, billing, and subscriptions.
Among the cloud computing business trends and technologies, the adoption of subscription management platforms will see a high growth among CSPs and SaaS vendors.
Suggested Reading- 6 Biggest Challenges For Cloud Resellers In 2022
8. Focus on Improving Cloud Security
Among all the benefits and latest cloud computing trends 2022, the security concerns can't be ignored. Cybersecurity incidents cost businesses a whopping amount. Ponemon and Proofpoint report reveals that cloud account compromises cost more than half a million to 86% of businesses. Microsoft detects more than 1.5 million hacking attempts every day.
CXOs are adding cloud security solutions to the list of their priorities to avoid cyberattacks and meet data governance & compliance. In the IT security market, cloud security is the fastest-growing segment.
As a result, we are seeing the rise of cloud security software and increased investment in security solutions by cloud providers as well. For instance, Microsoft invests $1 billion every year to tackle cloud security challenges. The value of the Security as a Service (SecaaS) market was $11 billion in 2021.
Gartner's Hype Cycle for Cloud Security 2021 highlights these technologies as the essentials for controlled, compliant, and cost-effective cloud adoption strategies:
- Secure Access Service Edge (SASE)
- Security Service Edge (SSE)
- SaaS Security Posture Management (SSPM)
- Cloud-Native Application Protection Platforms (CNAPP)
Wrapping Up: Ready for The Recent Cloud Trends 2022?
These are some of the top cloud business trends, technologies, and innovations to expect throughout 2022. Hybrid cloud, AI, serverless computing, edge computing, SaaS growth, and adoption of cloud subscription billing software will be at the forefront this year. To stay relevant and competitive, you must stay up-to-date about these trends.