Cloud computing giants, Microsoft Azure and Amazon Web Services (AWS) are amongst the biggest beneficiaries of the pandemic-related IT spending surge. As countless employees continue to work remotely, the cloud providers’ coffers are set to continue to grow exponentially. The recent ‘State of Tech Spend Report’ by Flexera found that of over 470 organisations across North America and Europe, 49% expect to increase their overall IT spending in 2021 in comparison to in 2020. Furthermore, nearly half (48%) of the report’s respondents consider their migration to the cloud to be a top priority for their IT in the coming year, up 40% from 2020.
It’s unsurprising that so many organisations have begun to increasingly consider cloud migration as the next natural step since the start of the pandemic. Cloud hosting provides greater flexibility and scalability for both employees and customers. In a time when it’s unclear what’s around the corner, the ability to quickly and effectively mould a company’s digital presence to current demand has never been so important. Thousands of businesses around the world have already made the swap, with cloud spending up by 33% in 2020, to $142 billion.
Who Holds the Lion's Share?
Amazon Web Services (AWS) continues to dominate the market, boasting a market share of 32%. In comparison, Microsoft Azure has a 20% share, whilst Google Cloud maintains its own 7% share. Yet, the COVID-19 pandemic and associated restrictions continue to boost IT related demands. As such, the cloud hosting market is shifting; whilst AWS continues to hold the lion’s share of the market, Microsoft Azure is slowly closing the gap.
Canalys research analyst, Blake Murray, has stated that ‘the rate of digitalisation, led by cloud, is gathering pace. Companies are now more confident about realising budgets for business transformation. Large projects that were postponed earlier in the year are being re-prioritised. [...] Healthcare, financial services and pharmaceuticals are among the industries leading the way, but even to those under [the] most pressure are diverting investments to the cloud, opening up new revenue streams and diversifying business models.’
The cloud hosting and technology sectors continue to thrive in 2021. Whilst the pandemic has been the cause of countless problems, at least one positive has come to the fore. Multiple organisations have acquired a more secure, flexible and cost-effective means of managing their data.