Market Definition
Rapid digital transformation is facilitating organizations to offer better products and enhance customer experiences. The ability to analyze critical data is a crucial part of this digital transformation. With technological advancements, cloud computing has now become essential for everyone & everywhere.
Distributed cloud is a public cloud computing service that allows public cloud infrastructure to run in different locations and not just on the cloud provider's infrastructure but on-premises, or third-party data centers, or in other data centers of cloud providers. The originating public cloud provider controls the operation, governance, maintenance, & updates of the distributed infrastructure.
With distributed cloud services, businesses can run different applications in various cloud locations that best meet their requirements for performance & regulatory compliance. The adoption of distributed cloud solves the management & operational inconsistencies that might happen in hybrid cloud.
Market insights
The Global Distributed Cloud Market is anticipated to grow at a CAGR of around 25% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the rapid adoption of the Internet of Things (IoT), edge computing, Artificial Intelligence (AI), & telecommunications, among others, to analyze a large volume of data in real-time. These applications that move the massive amount of data from edge locations to the cloud require cloud services to be as near as possible to edge locations. Hence, shifting cloud resources to edge locations will help increase the application’s performance, owing to which the adoption of distributed cloud would increase astronomically among businesses in the coming years.
Moreover, with the surging amount of data generated by various sources, the need for low-cost data backup and data security & safety options are increasing among organizations, thereby augmenting the market growth. In addition, increasing penetration of internet services and the snowballing usage of smart devices are other crucial factors driving the market.
Furthermore, the increasing prevalence of cyberattacks and mounting concerns over data privacy & security are escalating the need for high-end security measures with easy data sharing. It, in turn, is propelling the demand for distributed cloud technology among organizations. Besides, various digitalization initiatives by organizations across different industry verticals to improve operational transparency & efficiency entwined with business performance are also fueling the deployment of distributed cloud technology.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 25% |
| Regions Covered | North America: USA, Canada, Mexico |
| Europe: Germany, UK, France, Italy, Spain, Netherlands | |
| Asia-Pacific: China, India, Japan, South Korea, Australia | |
| South America: Brazil, and Argentina | |
| Middle East & Africa: Middle East, Africa | |
| Key Companies Profiled | Amazon Web Services, Digital-Ocean, Rackspace, Alibaba Cloud, Liquid Web, Microsoft Azure, Google Cloud Platform, VMware,Oracle Cloud, VeriZon Cloud, Navisite, IBM Cloud, Open Nebula, Cloud Sigma, Dell Cloud, etc. |
| Unit Denominations | USD Million/Billion |
Impact of Covid-19 on the Global Distributed Cloud Market
In 2020, the Covid-19 pandemic dramatically changed the way businesses function. The imposition of lockdown to curb the spread of the virus pushed organizations to adopt work-from-home policies, the increasing adoption of which fueled the need for better cloud communication & collaboration services worldwide. Although the pandemic has been a propellant for a global economic crisis, it has also augmented the demand for the digital economy. The usage of online platforms like Microsoft Teams & Zoom has witnessed enormous upticks. Moreover, the distributed nature of cloud services is a perfect fit to manage virtual work.
In addition, the adoption of digital platforms & tools has been a saving element during the pandemic. By ensuring secure remote work, cloud technology played a major role in underwriting a new era of corporate enterprise. It is going to take time to return to normal work cultures. However, travel restrictions due to the increasing dangers posed by disease transmission are changing the world economic system.
Given this economic reorientation, cloud computing is gaining immense popularity across modern businesses. Where traditional cloud services help to cut costs & focus on core business competencies, distributed cloud technology complements an additional geographical layer, shifting computing & data closer to users while reducing latency and enhancing security.
