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Why Cloud Computing Is Growing Rapidly

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Most people would agree that cloud computing is the next big thing in enterprise technology with many players both new and old coming into the market. To put it in perspective, cloud computing is growing seven times faster than overall IT spending growth according to IDC. 

Looking at the public cloud industry, both earning announcements earlier this year from Microsoft and AWS demonstrate that cloud services are growing and most importantly, profitable.

According to ReportLinker, the global cloud computing market size is expected to grow from USD 272.0 billion in 2018 to USD 623.3 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 18.0%. In Australian alone, the public cloud services market is poised to grow 87% over the next years reaching $10.3 billion by 2022. 

But cloud has been around for many years. Why the sudden growth? 

Cloud computing has predominately been around since the early 2000s. With the lack of education and trust of the technology, however, many organizations were reluctant to implement it within their IT infrastructure.

According however to Bart McDonough, CEO of Agio, rapid adoption has been fueled by the understanding of “ease of use and scalability”. With more organizations understanding the benefits of cloud computing and with negative perceptions fading away, many companies are opting to test workloads in the cloud and some even migrating everything to the cloud. With this, we explore the three main factors that are helping this push: flexibility, scalability, and security. 


For many businesses, the architecture is preferred as the ability to access your back end through the internet from any location is desired, especially for multinational global corporations. By having the ability to access both your frontend and backend freely through a centralized cloud server, it allows for quick user requests (e.g. spinning up a VM) and ability to monitor analytics efficiently. As McDonough puts it, if you all of a sudden need resources in Europe if you need resources in Asia, you can quickly spin ...”. 


The second point is the scalability of the architecture. The beauty of cloud computing is the ability to add on more storage or users with a click of a button (and the reverse as well). The whole premise is a company that needs to scale quickly will now have an environment that can match its growth, especially international growth. Scalability in cloud computing can also mean reducing the need to predict future capacity as high demand can quickly be accounted for. 


On the other side of the block, security and control were some of the major reasons why companies hesitated to move to the cloud. With technologies now improving and maturing over time, organizations have started to become comfortable moving more data over to the cloud. Although this doesn’t replace some mission-critical data as well as other backups, the movement has already begun. 

With many now focusing on testing or migrating to the cloud, there are many concerns around the transition and taking steps to make sure it’s smooth and secure. 

With Veritas, we can help you make the transition with our cloud migration products and more. Reach out to us if you have any questions

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