Discover the 10 trends that will mark the next five years in the Cloud market
International Data Corporation (IDC) announces that the cloud computing market in Portugal will grow 20.3% in 2023, representing an investment of 640 million Euros. A value that should maintain the growth trend and reach one billion euros in 2026.
"The Cloud market will continue to play an increasingly relevant role across the IT industry as an enabling technology for a 'digital-first' economy. National organisations are committed to making the transition to an increasingly digital economy and, in this transformation, cloud services show a substantial increment. For this reason, we foresee a relevant growth in the next three years in the cloud computing area," said Gabriel Coimbra, Group Vice President and Country Manager at IDC Portugal.
In terms of cloud computing categories in Portugal, the highlight goes to Software as a Service (SaaS) that reflects nearly 70% of the market, and should represent an investment of 447.1 million Euros this year and 685.2 million Euros within three years. The Platform-as-a-service (PaaS) model is the one that has shown the greatest growth, which should remain at an average of 30.4% until 2026. This year, investment in PaaS should reach 103.1 million and 223.4 million euros in 2026. Finally, in Infrastructure as a service (IaaS) the average investment per year should be around 25%, until 2026, with organisations investing 143.4 million Euros this year, and 264.2 million Euros in 2026.
In recent years, cloud computing has represented a fundamental change in the way companies manage their business, making organisations more agile and not requiring large investments in hardware. Cloud solutions bring a set of relevant benefits to organisations, as they are easy to manage and maintain and are supported by consolidated security rules. Today, most companies and organisations already understand the need to allocate their systems to secure and low-maintenance structures, a trend that has created a constant competitiveness of the costs inherent to the implementation of this type of solution.
10 Cloud market trends for the next 5 years
At the IDC Cloud Roadshow, an IDC Portugal event held today at the Centro Cultural de Belém in Lisbon, the study "Cloud 2023 Preditions" was presented, which highlights 10 predictions on how IT organisations can take greater advantage of cloud technologies and capitalise on and extend the cloud to new locations, while maintaining intelligent governance of cloud resources over the next five years.
1st Prediction: By 2024, 40% of G2000 companies will move 10% of information to a cloud provider to handle data, technical and operational requirements.
Implementing privacy measures is now the top priority for multinationals. Due to the impact the Russia-Ukraine war is having on organisations' data processing around the world, over half of respondents said they will be creating guidelines or accelerating their implementation.
2nd Prediction: By 2027, 65% of companies will save more than $1 million per year by using automation to improve resilience and reduce repetitive tasks from IT operations.
Modern computer automation platforms offer many advantages over previous generations. These advantages include rapid time-to-value (SaaS) software models and artificial intelligence (AI) enabling proactive actions with limited human intervention.
3rd Prediction: By 2025, 75% of organisations will favour technology partners that provide a consistent application deployment experience across Cloud, Edge and dedicated environments.
There is room for the cloud model to improve and IT vendors to work collaboratively to enable this improvement across all their platforms, even in competitive situations. IDC data shows that emphatically customers want to manage hybrid and multi-cloud environments.
4th Prediction: By 2025, 55% of G2000 companies will adopt multi-cloud data logistics platforms to enable active data migration, optimise costs, reduce vendor dependencies and improve governance.
Data logistics describes how data moves through a system from creation to value. The ability to move data from one cloud platform to another will enable organisations to make more services available and help reduce the risk of disaggregation.
5th Prediction: By 2025, 70% of enterprises will adopt WANs and cloud networks to improve the availability, latency, performance and reliability of Cloud, Edge and Workloads applications.
Applications are essential to digital business, so it is important to migrate existing applications to cloud environments. As applications gravitate to the cloud it is redefining how networks should be architected and operated to serve the needs of digital business.
6th Prediction: By 2027, 80% of organisations will invest in specialised cloud-based applications and high-performance computing environments to gain agility, scale, and speed business.
IT organisations no longer need to worry about optimisation and inherent challenges as many of these issues are solved by the service provider.
7th Prediction: By 2026, 45% of G2000 enterprises will adopt cyber-recovery as a service as Ransomware attacks increase and require sophisticated recovery strategies.
Cyber-recovery as a service (CRaaS) is a developing market with a high growth rate. IDC estimates that CRaaS is expected to reach $317.7 million by 2026 (149.3% CAGR).
8th Prediction: By 2024, 80% of IT buyers will make their decision to use cloud services if the vendor demonstrates that its solution helps reduce the customer's carbon emissions.
While professional services firms are still at the forefront of helping organisations set sustainability goals and strategies, IDC data shows that enterprise software and IT infrastructure are also being seen as important partners. Cloud infrastructure plays a significant role in organisations' journey to a carbon-free future as the majority of carbon emissions are being produced outside of their core operations.
9th Prediction: By 2027, AI will increase speed, automatically generating code to meet business requirements, for 80% of new digital solutions in development and early deployment.
Over the next five years, development tools across the application lifecycle should increasingly incorporate the ability to automatically generate code. By 2027, this technology will be so persuasive that IDC believes it will be able to generate code to meet business requirements for the vast majority of new digital solutions.
10th Prediction: By 2024, the complexities of digital business and IT budget pressures will drive 70% of G1000 companies to invest in FinOps through multiple cloud optimisation.
Companies are moving from one-off digital transformation projects to a fully digital business model. This shift is driving the need to optimise cloud resources and costs.
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