The Cloud Computing market has witnessed massive and sustained growth since the spring of 2020. This was roughly the time when the Covid-19 pandemic really started disrupting our normal lives and businesses across the globe with no exception.
This strong momentum in the demand for cloud services during 2020 carried over to the year 2021 as well. In the first quarter of 2021, only US based companies spent an additional 29% on cloud based services and solutions, taking the tally to US $18.6 BN.
A rapid move towards digital transformation is being cited as the most dominant factor behind this strong demand for cloud solutions. This momentum was further supported by a slight up-tick in the struggling economy, mostly backed by stimulus packages.
Then, we also observed an unprecedented interest of governments in cloud powered services and solutions. Once federal and state owned institutions start adopting the Cloud, one can expect a notable spike in the demand for the Cloud.
As the demand for cloud solutions drastically rises, so do the stakes for Public Cloud Service Providers like AWS, Azure, Google Cloud and dinCloud. Cyber security is, and will continue to remain a prime concern for both governmental and commercial institutions alike.
The next key differentiator for Cloud Service Providers (CSP) will be how proactively they can maintain the privacy of their users. In the backdrop of tighter regulations around data privacy, CSPs will have to tread a very delicate path hereon.
At the end of the day, it all boils down to the level of trust that cloud users pose in the services of various cloud providers. Most industry analysts believe that security, privacy and trust will emerge as some of the top differentiating factors for cloud providers.