Cloud migration market forecasts shift in response to COVID-19
The COVID-19 pandemic has proven to be a huge wake-up call for enterprises that hadn’t prioritized cloud migration prior to global WFH orders, as cloud solutions have become a lifeline in the face of an unprecedented shift in how the world does business. As teams rushed to deploy tools and workflows to hundreds (if not thousands) of locations across a suddenly decentralized network footprint, cloud solutions were among the only options that could be adopted quickly, cost-effectively and at-scale for the enterprise.
A new report from analyst firm Technavio shows that this unexpected boom in cloud adoption isn’t just anecdotal, but has actually started affecting market forecasts.
The report shows that the cloud migration services market, which had already been on an upward trajectory prior to the pandemic, still has a lot of expanding to do beyond this recent surge, as it’s forecast to enjoy a compound annual growth rate (CAGR) of 24 percent between 2020 and 2025.
That equals out to a roughly $7.1 billion increase in investments over the next five years, which is a sure sign that businesses are putting the cloud front and center as part of their long-term IT strategies – and not just investing short-term to cover the costs of COVID.
The report found that while this acceleration in market activity surrounding cloud migration will be reflected in financial records from the first couple quarters of the year, the impact will gradually lessen in subsequent quarters as industries adjust to the “new normal.” So while the current rush to the cloud may only slightly boost the market’s full-year growth trajectory, the industry is still growing at a substantial upward tick that indicates a seachange for how enterprises conduct business.
Roughly 37 percent of the new investments will take place in North America, the report found, while hybrid cloud and container adoption were the two leading subsegments of the cloud market leading growth over the next half decade.
Making huge investments into cloud (whether in response to sudden world events or as part of a long-term cloud strategy) still requires care and a complete understanding of network performance for companies to reap any benefits. Regardless of IT’s timeline, making massive changes to user’s workflows without fully understanding the impact cloud migration may have on the network is a recipe for disaster – especially when considering the bevy of ISPs and third-party providers involved in keeping users connected.
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Filed Under: industry insights
Tags: work from home, remote work, WFH, enterprise transformation, network transformation, digital transformation, network monitoring, network management, enterprise IT, enterprise WAN, enterprise network, enterprise, social distancing, quarantine, pandemic, COVID 19, cloud migration services, cloud migration, cloud adoption, cloud computing, clou