Forecasting Total Market Demand Cloud Computing Products The cloud service provision industry is an area that has demonstrated potential to thrive in many areas of life due to its efficiency

Subject:BusinessPrice: Bought3

Share With

Forecasting Total Market Demand

Cloud Computing Products

The cloud service provision industry is an area that has demonstrated potential to thrive in many areas of life due to its efficiency. Cloud computing involves supporting on-demand computer services necessary in today’s digital and technologically advanced world. Therefore, storage, processing, and application operations depend on cloud service providers to support the various activities through the internet and, in some cases, as a pay-as-you-go (Castro et al., 2016). As a service provider, I will eliminate my clients’ risks from running their computing infrastructure as the upfront costs and maintenance requirements might surpass the users’ needs. The wide variety of clients that need cloud services makes providers easily utilize economies of scale. The services get provided in three forms, namely, Infrastructure as a Service (IaaS), Software as a Service (SaaS), and Platform as a Service (PaaS).
Cloud computing products provide easy backup and storage facilities for institutions and users who depend on the computer and ensure timely software updates that ensure the applications operate effectively. The service providers ensure that businesses have computer resources that much their growth strategy; therefore, there is an effective utilization of resources lowering operational costs associated with IT. As a service provider, supporting users is successful by consistently maintaining an up-time of up to 99.99%. It is a competitive edge that will drive sales up the roof. The reliability of the services offers protection of resources from natural disasters (Castro et al., 2016). Therefore, business continuity is guaranteed as the overall security is top-notch despite the increased number of threats such as hackers, viruses, and ransomware. Although application security is up to the client, the general infrastructure safety requires collaboration between parties involved. Education and training of users ensures success of the project.
Potential End-Users
The potential end-users are a group to several distinct individuals and organizations due to the nature of cloud services. Since computer resources are compulsory in almost all areas of life, the users include households, organizations, students, the entertainment industry, and sales and marketing institutions. Households will need it to store photos, watch movies, and storage of personal items. Organizations need the cloud to ensure maximum collaboration between teams working in remote areas, protect their intellectual data and information, and ensure the business’s reputation gets uplifted through protecting their client’s security (Berman et al., 2012). Sales and marketing companies and teams can utilize cloud computing resources to organize product penetration exercises and collaborate and access the same IT resources regardless of their location. The entertainment industry can store their projects and progress in safe platforms that ensure physical servers get eliminated from their processes. Students can store their projects, notes, e-books, and other resources that do not necessarily require physical storage facilities. Therefore, accessibility is easy and assured.
Market Substitution
The available substitutions to cloud services include physical storage and database that have proven ineffective and unsecured for today’s Cybersecurity risks. They are an earlier technology that has proven ineffective, and the security risks do not make it attractive to those hosting. It is unlikely to affect the demand for cloud services as its features are inferior to the cloud (Wu et al., 2018). The current alternatives that are keeping up with the users’ needs include project solid and mesh networks. The current substitutes and technologies have not effectively kept up with the cloud leading to gaps and inconsistencies.

The project solid is an alternative for users who are keen to maintain their data security when they sign up for services and applications. Therefore, when a user decides to drop their services, they will not leave any personal details that might get misused or utilized for other illegal services (Ranger, 2018). It provides an extra security feature that clouds computing services does not provide. It is an alternative that will reduce the demand for cloud services for personal utilization customers. It will not affect organizations’ customers.
Mesh networks are as reliable as cloud services but offer better bandwidth. It means that remote teams that work in marketing departments or organizations can easily collaborate with little downtime. It is a feature that will easily reduce the demand for cloud services from huge organizations that are looking to operate from several decentralized areas (Berman et al., 2012). Mesh networks will not tamper with the student, household, and personal user markets.

Market Segments

PaaS	Iaas	SaaS
API development and innovation centers utilize the segment to test new computer programming.	It is utilized in a test and development for new strategies in business	Emailing is a basic necessity for any environment. It is built upon this segment.
Business intelligence companies utilize the PaaS segment to test new technologies.	Web applications are hosted through the platform.	Human resource management systems depend of the SaaS segment.
Companies can implement business process management.	Scientific computations which represent high performance computing utilizes the platform.	Collaboration in sales teams utilizes products built on the segment.
In the communications industry it is a platform for developing new voice, video, and texting technologies.	Big data analytic institutions and data warehousing uses the cloud segment.	Customer relationship management organizations require the SaaS segment to reach a high number of clients and maintain relationships.

 

Demand in the Industry

The number of clients seeking cloud technology is enough to warrant a huge investment as the potential profit margins are positive. The value of the market is in billions of dollars with clients from all over the world. From the recent computations, the industry will grow from USD 371.4 billion in 2020 to more than USD 832.1 billion in 2025. It is a potential that guarantees an effective strategy in the market can generate enough profits. In June 2020, Amazon, one of the biggest players in the cloud industry, has increased its coverage regions for cloud products to 24 regions worldwide, with more than 76 centers serving them. Therefore, with proper management of the available funds, I will achieve product differentiation. The economic benefits that will become evident will excuse the huge initial investment required in the industry. The market potential is positive due to the swift regulations and policies that most regional authorities have placed in different industries regarding cloud technology adoption. Consumer protection and quality service are the main drivers (Berman et al., 2012; Ranger, 2018). The interdependence between automation and cloud technology has also pushed the industry to grow.
The best market segment that matches my initial investment is SaaS that makes up one of the major types of cloud. Its infrastructure is set to grow, with the spending on the product set to at 7% for the year. Compared with the other segments, it remains the most consistent with its potential set to grow and remain the most profitable segment in cloud services. By the year 2022, more than 140 billion dollars is expected to get generated. The use of compounding annual growth rate predicts a SaaS reaches more than 11% growth potential (Wu et al., 2018; Ranger, 2018). Therefore, investing in the SaaS segment guarantees growth and profitability.