Cloud architecture spending for IT service providers in 2020

Organizations of all sizes have embraced the possibilities that cloud computing has brought to their businesses, including the expansion of a global and mobile economy as a result of its no-boundaries scalable approach in reaching customers anywhere. Just as important, as global events have forced companies into more of a remote workforce, never has cloud computing become so critical in powering this global economic engine.

How is cloud growing? It is estimated that more than 90 per cent of organizations will leverage the public cloud in 2020, driven by increased cloud computing use. In fact, public cloud customers are expected to invest more than $50 billion on Infrastructure as a Service (IaaS) from leading providers like Microsoft Azure, among others. Much of this growth comes not only from wider adoption of cloud services, but also in the form of existing customer infrastructures. With that in mind, cloud continues to be a great business expansion opportunity for any IT service provider.

According to a leading analyst, cloud services spending will jump 17 per cent in 2020, to reach $266.4 billion. Software as a Service (SaaS) represents the most significant market segment at $116 billion. However, the fastest-growing portion of cloud expenditures will continue to be Infrastructure as IaaS, which is growing 24 per cent year-over-year and is expected to reach $50 billion in 2020.

Cloud is needed for big data usage

Big data is terabytes of information about consumers, organizations, trend patterns, and significantly more that is contextualized utilizing big data software. In its raw format, data produced by customers is less valuable. However, data that is scrutinized by analytical software can uncover insights and trends that lead to better products and services. Most of this data and these learnings are stored in the cloud.

IT service providers can help add significant value to smaller firms that leverage big data to expand their business and grow sales on a global scale in order to compete with larger companies. How is this possible? Data can affordably be stored and controlled in the cloud, thereby leveling the playing field for companies of all sizes.

The cloud powers a global and remote workforce

When employees around the world need information, they recall it from servers operating in data centers in different parts of the world. The information and data is sent through powerful and secure networks linked to the internet from servers that host it. This is all made possible with servers connected to a cloud network. The major advantage is that a global, remote workforce can all have access to data, information and critical files from anywhere in the world.

Additional layers of security in the cloud

Many companies rely on the cloud because it helps keep files secure. Data that lives in the cloud is more secure than files located on premises. Information in a cloud architecture lies behind additional layers of security, resulting in critical business information that is secure and protected.

A scalable enterprise

Change is the only constant when it comes to business, no matter the size of the company. Businesses are migrating workplaces, contracting workforces, adjusting permanent employee headcount, combining and unmerging at a fast pace to address their changing business needs. Traditional on-premises networks burden organizational leaders and require a significant investment over time.

Cloud architecture offers the right amount of flexibility to adjust in line with the business. It enables organizations to scale up or down as projects and needs arise, all without the need to worry about geographical boundaries. Users can be added or removed depending on real-time projects around the world, all with secure and remote access to critical files which reside in the cloud.

A partner for successful outcomes

As cloud-based hosted software services continue to reshape and expand the principles of modern IT, the future of any hosting services provider depends on the quality of its partnerships. DXC Software Licensing and Management Solutions (SLMS) Hosting offers service providers the best opportunity to build the right portfolio of cloud-based hosted solutions, including Azure for Cloud Solution Provider (CSP), that best positions them for optimum business growth potential while cutting costs out of the portfolio.

For more information, visit our website and contact DXC SLMS Hosting today.