The global public cloud market size is expected to reach $596 billion by 2027, expanding at a compounded growth rate of 14.6 per cent from 2020 to 2027, according to a new study conducted by Grand View Research, Inc.
Owing to the high scalability and reduced operational costs offered by cloud services in the wake of digital transformation of industries, the market is witnessing rapid growth. Moreover, enterprises across the globe are gradually adopting public cloud technology to rapidly build, test, and release quality software products.
The public cloud is a multi-tenant environment, which offers rapid elasticity and high scalability with capability to consume resources on a pay-per-use basis. Governments and institutions are planning gradually to completely integrate its conventional systems with these computing technologies.
As a part of the IT Modernization effort, U.S Federal Government had initiated Cloud Smart Strategy in October 2018 to improve citizen-centric services, accessibility, and maintain cybersecurity.
Moreover, adoption of the technology is rapidly gaining importance among Small and Medium Enterprise (SMEs) sector due to the cost competitiveness offered in the market.
Currently, most of the enterprises of varying sizes, are revamping from traditional to digital mode of business.
The transformation is likely to create potential market for public cloud owing to its benefits such as reduced Total Cost of Ownership (TCO), agility, and flexibility. IBM Corporation states that around 89% of IT professionals expect to move business-critical workloads to cloud, which are driven by the growth in digitization.
Government organizations are also this technology services for storage, disaster recovery, risk compliance management, and identity access management applications.
In October 2019, amidst corporate hostility, Microsoft Corporation was awarded the U.S Department of Defense contract, Joint Enterprise Defense Infrastructure (JEDI) worth $10 billion.