It’s not all gloom and doom out there – Synergy Research Group’s data reveals that “Across four key cloud service and infrastructure market segments, operator and vendor revenues for the first half of 2020 reached US$187 billion and it is likely annual spending on cloud services could double by 2024.”
“Cloud-associated markets are growing at rates ranging from 10% per year to well over 40% and we forecast that annual spending on cloud services will double in under four years,” said John Dinsdale, a chief analyst at Synergy Research Group,
Why do we care?
We care because of the link between performing providers and the cloud. In the data discussed back on August 25th from Service Leadership, they found that the best in class providers grew cloud revenue by 18.2%, while the median and the bottom saw no change.
The obvious statement – the best in class providers are following the acceleration.
My “provider of the future” model focuses entirely on the cloud – and this is why. All of the growth and acceleration is in the cloud space. New businesses would go only cloud. It’s those with a legacy that will need to move faster.
I didn’t include it in the news, but I’ll reference it here. There’s some data for small and medium businesses in New Zealand put out by Cisco (and link in the show notes), that speaks right to this — 88% of New Zealand SMBs polled say that digitalisation will help to build their resilience, and 94% have relied more on technology during the pandemic.
You know that’s useful in any market, because that’s the “Why” of this investment.