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Cloud Infrastructure and the Pandemic- A shining light
Technology - June 1st, 2020
Even before the pandemic, there was a steady rush from companies to move to Cloud. Digital
transformation and Cloud adoption had started to become mainstream and it was only a matter of
time before every company adopted the necessary measures to operate completely with Cloud
technologies and infrastructure.
Then the pandemic happened and companies who had already put a cloud infrastructure in place
found themselves at an advantage over their on-premise counterparts. In spite of the
limitations, these companies were able to ensure business continuity for their clients, partners
Synergy Research did a thorough study on Cloud infrastructure, covering areas such as key
vendors, spending, growth factors etc. The research cited that Cloud Infrastructure market
amassed a total revenue of $29 billion in Q12020. The revenue is almost comparable to Q42019
however as pandemic has put a firm brake on other industries, it is encouraging to see Cloud
vendors posting a growth in these turbulent times. This also signifies a major shift in market
trends as the pandemic is forcing companies to switch to Cloud. Companies are looking at Cloud
to provide flexibility and a secure and consistent way to maintain their operations. The biggest
worry for them are the restrictions and uncertainties which the pandemic has brought to the
world of business. Cloud provides a sustainable solution to these core issues and this is the
main reason of this unexpected growth.
Here are two key charts from the Synergy Research report.
As you can see from the graphs, the biggest beneficiaries are Amazon and Microsoft. Amazon Web
Services (AWS) is leading the pack with more than $10 billion in quarterly revenue as it
maintains its firm grip on the market. Microsoft posted around $5.2 Billion in Azure numbers and
Google came in third with $2.78 Billion in Cloud revenue. In terms of run rate, AWS and Azure
are firmly ahead with a combined run rate of over $60 Billion.
In terms of market share, it is 32% for AWS, 18% for Microsoft and Google stands at 8%. In terms
of rate of growth, Synergy reported that Microsoft has outpaced AWS in terms of rate of
adoption. This is a very encouraging sign for Microsoft as it has taken aggressive steps to
expand its market share in the Cloud space and close the gap with AWS.
Beyond the Pandemic: Next steps for Cloud Infrastructure companies
Now that the companies are accustomed to remote functioning in light of the pandemic, the
long-term approach of enterprises must be reimagined. The areas such as compliance, privacy and
security must be expanded to accommodate these workplace changes. From now, employee safety is
going to be the number one priority for businesses and everything will be adjusted to
accommodate these priorities. Even Cloud datacenters will be maintained in such a way that the
personnel operating these centers feel safe at their workplace. These priorities and this shift
in organization and employee behaviour is going to be in place even after the pandemic. As one
expert from AWS pointed out, "No one was prepared for this. In future, everyone would be
prepared for anything".
Below are the predicted changes described in bullet points.
1. Companies are never going back to the old world as they will gradually realize that they can
extract similar productivity from their employees. The location bound workplace confined in
specific cities or regions is soon going to be a thing of the past.
2. With this shift in mindset, companies will realize that they can mitigate the risks and
increase their flexibilities by leveraging the benefits of Cloud infrastructure. The long-term
plan includes Public Cloud, Mobile computing, 5G connectivity etc. Gone are the days, when
companies used to purchase laptops and desktops in bulk. The companies will now endeavour to
provide cloud infrastructure and security to employees own individual systems.
3.Before the pandemic, companies had only moved 30-40% of their infrastructure to cloud. This
would be going to drastically change as more and more businesses may become 100% Cloud based.
4. Enterprises who were all cloud didn't have to worry about protecting their employees from
Coronavirus. They swiftly moved to remote and business continuity sustained. This is the biggest
takeaway for companies who haven't embraced the Cloud completely.
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ISSQUARED Inc. is a leading IT infrastructure, Cloud and Cybersecurity firm which partners with
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Cloud Deployment Options
ISSQUARED Inc. gives you three options to deploy your Cloud services. You can choose any of the
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Private cloud is popular with companies whose priority is privacy and security. They do not want
to share datacentres and are strongly concerned about loss and breach of data. Virtualization on
the other hand is the most popular technology concerned with enabling cloud computing. There is
widespread confusion in the cloud computing about the two being the same. In fact,
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other features .
ISSQUARED’s Cloud services are tailormade to meet your every need. For any query, please reach
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