IoT Analytics does a respectable job of taking a look at the growth potential for cloud computing hyperscalers (public cloud companies) moving forward. They see this market moving from $157 billion in 2022 to around $597 billion in five years, to anywhere in between a ~$0.6 trillion to ~$10 trillion total addressable market (TAM). The wide range accommodates an aggressive or conservative development pattern or something in the middle (read the short article for more information). IoT Analytics is making these predictions on a 10- to 20-year horizon.These figures represent the market for hyperscalers only. They don’t include individuals services or numerous add-ons required to make cloud services genuinely work. If you include all that in, I believe hyperscalers will grow approximately at the exact same rates they are now.What is most fascinating to me is how far into the future this report looked. I rarely take those leaps, understanding full well that innovation tends to move in lots of random directions and at many random speeds based on the unpredictable nature of how we consume technology and the changing top priorities around new and emerging concepts.What holds true about the cloud computing market, and especially hyperscalers, is that cloud computing is the base of
emerging innovation moving on. For instance, if artificial intelligence grows more, so does the platform where it runs, which is the hyperscalers. Very same for cloud-native development, devops, and anything else you can consider. They operate on hyperscalers. Hence, even as interest in new innovations modifications, hyperscalers will stay table stakes and will grow no matter what.Of course, the pragmatist in me comprehends that eventually markets lack runway for growth. Look at tradition innovation, for instance.
(Note: I’m not calling out a particular platform so I will not get dislike mail from those who have actually developed a profession around that platform.)Although legacy technologies are still around and are a vital part of many business’computing facilities, they are no longer high up on the list of ways to modernize enterprise IT.What keeps the hyperscaler area growing regularly is the barrier to entry. You ‘d need billions in capital to construct a competitive public cloud company that can scale and has the points of existence required. Likewise, it would take so many years to end up being competitive, you would likely miss the market. This is why so many larger players dropped out of the public cloud space years ago to concentrate on other areas where they had a much better chance of success. A couple of strong gamers can grow in a relatively basic market and focus marketing and development on growth and much better protecting the marketplace. Given, we do see an increase in alternative public cloud companies that pursue niche services, such as industry-specific cloud services, low-cost cloud storage, or clouds that are specific to countries and cultures. They won’t make up a lion’s share of the marketplace anytime soon, however they will influence things moving on. So, we may be moving from lots of hyperscalers 12 years ago, to just a couple of today, and back to many in a couple of years. Certainly, we’ll quickly specify these various kinds of hyperscalers utilizing their category names.However, the biggest force that will drive growth is dependence. As I mentioned, many brand-new and innovative innovations operate on hyperscalers. We’re seeing strong growth in AI, serverless, containers, blockchain, and even edge computing, all depending on a hyperscaler as their hosting platform
(you have to remain in the edge of something). Most innovation that we develop or reinvent in the future will continue to depend on public cloud providers and will drive additional growth. So, no matter where the marketplace goes, and even if the hyperscalers begin to appear more like legacy technology, the dependencies will remain and growth will continue. The hyperscaler market could end up being more intricate and fragmented, however public clouds are the engines that drive growth and innovation.Will it stop growing at some point? I
believe there are two concepts to think about: First, cloud computing as an idea. Second, the energy of the technology itself.Cloud computing is ending up being so ubiquitous, it will likely just end up being computing. If we use mostly cloud-based usage models, the term loses meaning and is just baked in. I actually required this in a book I wrote back in 2009. Others have called for this too, however it’s yet to take place. When it does, my guess is that the cloud computing idea will stop growing, however the technology will continue to provide worth. The death of a buzzword.The utility, which is the most fundamental part, continues. Cloud computing, at the end of the day, is a far better way to consume technology services. The concept of constantly owning our own hardware and software, running our own data centers, was never ever a good one. Excessive capital investment and threat, too much carbon-producing electricity, and no capability to scale and modification at the”speed of requirement”for many companies. Considering this, I believe that the base scenario of $2 trillion TAM, as projected by IoT Analytics, will be easy to achieve. Copyright © 2022 IDG Communications, Inc. Source