The increase in cloud revenue for Big Tech is an amplification of a decade-long trend. Companies are spending more on outsourcing their computing needs, and in the last 10 years, enterprise spending on cloud services have increased by over 8,500 percent, going from $1.1 billion in 2009 to $96.4 billion in 2019. Overall spending on cloud storage and IT infrastructure is quickly replacing non-cloud solutions in the form of physical servers and computers owned by a company.
COVID-19 is proving to be the ultimate test for cloud providers and business cloud users. Employees from companies across many industries are now spread throughout the world due to office closures and restrictions, and remote work is expected to be on par with normal productivity. So far, cloud computing is meeting the challenge and giving companies easy-to-access storage, tools, IT and other services now almost essential for a modern business.
Look for the dominant services (SaaS and IaaS) to continue charting new territory for businesses looking to further digitize and stabilize their presence online. Whether it’s for more effective communication with employees, access to essential applications and storage databases, or to expand business from physical sources to digital, cloud computing will play a key role in reshaping businesses and industries during a long COVID-19 economic recovery.
Manuel Moerbach is president and CEO of Statista Inc.
The views expressed in this article are the writer’s own.
