As a growing market, “Cloud-Based Software” cloud computing has been used in different industries, from education to tech, healthcare, and accounting. This wide-ranging use of cloud solutions leads to significant growth in software creation.
Forbes Technology Council's research confirms that this market will continue to grow in the coming years.
And in this post, we'll talk about the growth momentum of cloud-based software.
Cloud-Based Software: In a Gist
Cloud-based software is built, maintained, and accessed via remote servers, which are powered with an uninterrupted internet connection. These servers are from third-party providers of cloud infrastructure services.
Enterprises have four options for their cloud hosting services: Public, Private, Hybrid, and Multi-Cloud.
If you're comfortable with sharing a server and resources with other organizations, then try opting for public solutions. Such as those offered by Microsoft, Amazon, and Google.
If you're looking for a cloud hosting solution for business, securing a private server would be best.
This option is perfect for those in the banking sector, medical offices, and other industries that need to meet some state-mandated sec5urity guidelines.
Hybrid cloud hosting combines public and private solutions. This option gives you access to multiple environments from a single IT infrastructure via a LAN, WAN, VPN, or API.
Hybrid clouds could become a multi-cloud solution if the environments are connected through orchestration or integration.
This is a popular choice among enterprises that are chasing after high performance, security, and IT environmental availability.
A research by Forbes Technology Council confirms that there are five leading providers of cloud solutions – Google Cloud, Amazon Web Services, Alibaba, IBM, and Microsoft Azure. And recent market studies show Amazon currently leads the race at a market share of 47.8%.
Microsoft comes in second (15.5%), Alibaba at third (7.7%), Google at fourth (4.0%), and IBM at the fifth place at 1.8%.
Research done by melitabusiness.com confirms that this market will continue to grow in the coming years. And in this post, we'll talk about the growth momentum of cloud-based software.
Where, When, and How Cloud-Based Software Started?
The concept of cloud computing has been around since the 1950s. In the 1960s, J.C.R. Licklider designed a system of interconnected computers. And in the 1970s, IBM released an operating system, called Virtual Machine (VM), which served as the foundation of digitalization.
But it started to catch mainstream attention in 2006. It all started when Amazon and Google started using the term to refer to a new way of accessing computer power, software, and files via the Web instead of a desktop.
Specifically, Amazon launched the Simple Storage Service (S3) and Elastic Compute Cloud (EC2), which allowed organizations to rent virtual machines to house their apps and programs.
This innovation paved the way for further advancement in the environment and capacities of VMs.
Cloud computing solutions are available at on-premise and pay-as-you-go options. And this flexibility encouraged further software creation projects.
Today, companies can leverage different cloud-based software for various purposes, such as for business process (e.g., Hubspot, Salesforce), communication (e.g., Skype), and file sharing (e.g., Google Drive, Dropbox).
Stats, Revenue Projections, and Perks of Using Cloud-Based Software
Even after considering the bullish growth of the cloud-based software, It's easy to say that it will stay. As of 2021, 90% of companies are using cloud solutions.
And by 2021, cloud-based processes are expected to handle 94% of workloads!
As of 2018, the market size of cloud computing was appraised at $272 billion. The experts have forecasted that its value will reach $623 billion by 2023.
These positive projections can be attributed to a lot of factors.
For one, the Covid-19 Pandemic has made it more compelling for companies to streamline online processes to power up their remote working systems. Thus, also increasing demands for VPNs.
The following perks are also primary drivers of the growth of this market:
The use of cloud-based software is fast becoming a trend today for countless reasons. And research done by Forbes Technology Council confirms that this market is still going to reach new heights in the coming years.
It's just a matter of how organizations and individuals integrate this technology in their processes to enhance different business metrics.