Cloud services demand will remain heightened after COVID-19

COVID-19 has unexpectedly launched a new era of cloud modernization, says GlobalData, a leading data and analytics company.

Gregg Willsky, Principal Analyst at GlobalData, comments: “COVID-19 has suddenly made it evident that cloud services are essential to business continuity as companies everywhere find themselves supporting a remote workforce indefinitely.”

For many enterprises, COVID-19 has simplified the decision to adopt a cloud-based solution. Communications and collaboration tools such as video conferencing, web conferencing and unified messaging need to extend beyond the enterprise. Businesses that previously only used cloud-based solutions internally are now repurposing them to interact with external parties such as customers, partners, and suppliers.

Willsky continues: “Demand for cloud-based solutions has soared as virtually every business has needed to rapidly transition to a remote workforce. In fact, GlobalData forecasts that the cloud services market will be worth $661bn by 2024, having grown at a compound annual growth rate (CAGR) of 19% between 2019 and 2024.

Despite the massive shift to remote work, cloud infrastructure has held up well. Regardless, the COVID-19 pandemic underscores the need for cloud providers to engage in ‘worst-case-scenario’ stress testing of their solutions. From this point forward, cloud architecture will need to accommodate a rapid scale in users and features while providing greater resiliency and reliability.

Willsky concludes: “Given this accelerated acquisition of cloud technology, adoption is likely to surpass previous levels even once the pandemic has passed.”

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