Many analysts in the cloud computing industry have been skeptical of leading public cloud providers sustaining their existing growth rates. While this assessment might be true in the normal course of events, this analogy somehow does not apply to the Cloud.
When we closely look at the growth trajectory of leading public cloud providers, we realize that the market for public cloud solutions is at the verge of exponential growth. The public cloud has now established itself as a viable and secure alternative to on-premise setups.
During the early days of public cloud services, they were viewed as a supplement to on-premise IT deployments, mainly entailing in-house data centers and other support hardware. All this has changed over the past few months in a big way.
The three top public cloud providers have raked in really impressive growth figures, both in terms of revenues and growth. The combined revenue of these three public cloud providers for the third quarter of 2021 is touching US $30 Billion.
From this figure, the public cloud solutions market is all set for the US $120 Billion mark over the course of year 2022. This figure does not even include any further growth projections. All three leading cloud providers have clocked impressive numbers.
Amazon Web Services (AWS), Microsoft Azure and Google Cloud have clocked revenue growth figures of 39%, 50% and 45% respectively, during Q3 of 2021. What most industry analysts are ignoring is the ability of the public cloud to replace on-premise deployments.
Enterprises, when heavily invested in on-premise deployments, want to extract the maximum possible value over the lifespan of the hardware. This normally is a period not exceeding four to five years, under the best circumstances.
It is estimated that enterprises will have spent to the tune of US $800 BN over in-house data centers, during the course of year 2021. Imagine even a quarter of this spending figure making its way to the public cloud, instead of upgrading on-premise hardware.
This can completely transform the public cloud computing landscape in a huge way. Given the way the public cloud has held its own over the past crucial months, it is quite possible that the public cloud may well be on the verge of yet another explosive growth cycle.