CLOUD BASED SERVICES EX.pdf

A Report by Neeraj Kumar
A Brief Market Analysis
CIVILAN MARKETING
CLOUD BASED SERVICES

CLOUD BASED SERVICES A Report by Neeraj Kumar
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Content
1) INDTRODUCTION
2) AN OVERVIEW OF THE CLOUD COMPUTING MARKET IN 2021
 PAST AND PRESENT MARKET OF CLOUD BASED SERVICES
 UNDERSTANDING SEGMENTATION OF CLOUD SERVICES
3) MARKET GROWTH FORECAST
4) ATTRACTIVNESS & INDUSTRY PROSPECTIVE
 REVENUE OUTLOOK of SaaS
 REVENUE OUTLOOK of IaaS
 PORTER FIVE FORCE ANALYSIS of MARKET
5) COMPETITORS , KEY PLAYERS & Their Solutions
 GROWTH OF MAJOR PLAYERS 2018
 AMAZON WEB SERVICES (AWS)
 MICROSOFT AZURE
 GOOGLE CLOUD
6) CONCLUSION

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Innovative technology brings
constant change to our society,
shaping how we live and work in
an increasingly digitised world—a
place where technical
developments are the foundation
for our activities both at home
and at work. Technology and
innovation are also integral parts
of modern communication,
making our work processes more
efficient and profitable. This is no
small challenge. A powerful tool
has emerged to help companies
meet this challenge: cloud
computing.
Cloud computing or Cloud based
services allows users to procure
their IT services on a flexible
basis according to their needs,
putting companies in an ideal
position to meet the dynamic
demands of their markets. This
enables IT to be flexible and
react quickly to accommodate
the needs of the business world,
which results in cost savings and
a more effective use of available
Capacity.
Further Cloud Computing is a
complex, distributed exchange of
data and resources over a
network. The most famous of
networks is the internet, but
companies, governments, and
individuals can even create their
own network for distributed
resource access. To better
understand the power of cloud
computing, as enabled by virtual
machines and distributed
computing resources, it’s prudent
to understand the components of
an integrated network.
There are clients which are
typically end user computers like
laptops and workstations that
connect to servers. The physical
connection, either through radio
waves (i.e. wireless) or through
Ethernet is the distribution path
of the network. The network is a
logical construct physically
implemented by connecting
wires, switches and routers that
direct the flow of data traffic, and
firewalls that control access to
different hierarchical access
levels logically segmented for
security purposes.
Cloud Computing helps in
reduction of necessary capacity,
investments and costs for
companies, and, most
importantly, allows them to
structure their specialist
departments in new ways.
INTRODUCTION

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Past and Present Market of Cloud Based Services
The cloud computing market is huge. Data from the Synergy Research
Group, across seven key cloud service and infrastructure market
segments, operators, and vendors reports revenues in excess of $150
billion in 2019.A 24% growth on the previous year.
And according to Research and Markets report cloud based services
market is set around $371 billion in 2021 (Ref: marketsandmarkets.com)
Understanding Segmentation of Cloud Based Services
Cloud Computing Technology Market Analysis by Services-
Infrastructure as a Service (IaaS)
Platform as a Service (PaaS)
Software as a Service (SaaS)
Cloud Computing Technology Market Analysis by Type-
Public Cloud
Private Cloud
Hybrid Cloud
Community Cloud
Cloud Computing Technology Market Analysis by Geography-
North America
Europe
Asia-Pacific
AN OVERVIEW OF THE CLOUD COMPUTING MARKET IN 2021

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INFRASTRUCTURE AS A SERVICE (IAAS)
IaaS is an offering of cloud computing where the provider supplies you
on-demand access to computing resources such as networking, storage,
and servers. Within the providers’ infrastructure, you run your own
platforms and applications. This provides a flexible hardware resource
that can scale depending on your storage and processing needs.
PLATFORM AS A SERVICE (PAAS)
PaaS is an offering of cloud computing where the provider gives you
access to a cloud environment in which to develop, manage, and host
applications. You will have access to a range of tools through the
platform to support testing and development.
The provider is responsible for the underlying infrastructure, security,
operating systems, and backups.
SOFTWARE AS A SERVICE (SAAS)
SaaS is an offering of cloud computing where the provider gives you
access to their cloud-based software. Instead of installing the software
application on your local device, you access the provider’s application
using the web or an API.
Through the application, you store and analyze your own data. You don’t
have to invest time in installing, managing or upgrading software, this is
all handled by the provider. Within each of these service categories, you
have the option of public, private, hybrid cloud solutions:

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PRIVATE CLOUD
A private cloud is where you host on your own data center or intranet.
You own, manage, update and upgrade your own cloud ecosystem of
server, networking, software, or platform resources. Protecting it all with
your own firewall and security solutions.
PUBLIC CLOUD
A public cloud is where the provider supplies you with access to their
data centre infrastructure. They are responsible for all management,
maintenance, security, and upgrades.
HYBRID CLOUD
A hybrid cloud is where you opt to use a mix of both public and private
cloud solutions. You are responsible for managing how the two services
interact, especially the security of data passing between both public and
private cloud setups.

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Cloud Managed Services

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The global cloud computing market size is expected to grow from USD
371.4 billion in 2020 to USD 832.1 billion by 2025, at a Compound
Annual Growth Rate (CAGR) of 17.5% during the forecast period. Due to
COVID-19 cloud technology adoption is expected to increase in sectors
where the work from home initiative is helping to sustain enterprise
business functions.
Many of the enterprises across verticals have adopted the work from
home model to safeguard employee well-being and maintain operational
efficiency, surging the demand for Software-as-a-Service (SaaS)-based
collaboration solutions. For instance, Microsoft Team platform users
increased to 44 million globally due to the high demand for collaboration
solutions. While the standalone 8x8 Video Meetings cloud solution
experienced a more than 300% increase in registered users in the last
week of February across ~150 countries. Other popular SaaS-based
collaboration tools gaining traction are Google Hangouts, Cisco Webex,
Slack, Zoom, Ding Talk, WeChat Work, and Tencent Meeting, among
others.
MARKET GROWTH FORECAST

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SaaS will be the “Primus inter pares” (First among equals)
The IDC report identifies SaaS as the largest spending category,
capturing more than half of all public cloud spending throughout the
forecast period. IaaS is reported as the second largest spending
category and is the fastest growing with a projected five-year CAGR of
32.0%. PaaS is the lowest spending category, with the second largest
five-year CAGR of 29.9%.
Software-as-a-Service generates more revenue than any other cloud
segment. In 2019, combined SaaS revenues totalled $94.8B, ahead of
PaaS ($61.4B), IaaS ($38.9B) and other cloud segments ($10.5B).17
SaaS revenues should continue to eclipse other cloud segments in the
near- and long-term - by 2022, they are expected to reach $144B.18
Adding credence to SaaS maintaining its significant revenue-share,
Cisco (NASDAQ:CSCO) expects that, by 2021, 75% of all cloud
workloads and computing instances will come from SaaS applications
versus 16% for IaaS and 9% for PaaS.

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In the IT industry, technologies are constantly changing, and at the fast
pace. One company cannot survive if it does not keep up to date with
current trends of technology. As of now, cloud computing is the trend
that is being integrated onto the infrastructures of many companies
across the world. At the same time, some may think that the cloud is not
ready yet, and that it still needs further development and research.
However, well known IT companies are just doing that by vertically
integrating with another company or like to acquire the knowledge base
assets of cloud computing technology. In addition, there has been an
increase in the three-distinct layers that started cloud computing: IaaS,
PaaS, and SaaS.
There has been a huge increase requesting for SaaS (Software-as-a-
Service). This form of business plays a major role in the cloud computing
technology. Most companies and most, if not all, start-ups have been
merging recently due to the increase of SaaS. In addition, many start-
ups are in the process of appearing in this particular marketplace that
helped developed cloud computing.
ATTRACTIVENESS AND INDUSTRY PROSPECTIVE

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Revenue Outlook of SaaS
SaaS presents an attractive business model that has the potential to
support long-term growth. Subscription fees generate recurring, sticky,
and projectable cash flow. Once companies integrate software into their
processes and their employees become accustomed to it, it becomes
very difficult to fire that SaaS provider - even if fees are increased. The
ingrained nature of this relationship creates direct-to-consumer
marketing channels through which they can upsell product, further
driving potential revenues. Over the last decade, revenues grew as the
segment matured.
From 2013 to 2016, quarterly SaaS revenues grew by an average 14%
YoY and in the three years since, this average reached 17%.20 In
recognition of expected growth, SaaS companies tend to have

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valuations that are multiples of current revenues - in Q4 2019, the top 50
SaaS companies by valuation totaled $1.5T in enterprise value on a
$194.7B revenue run rate with an average EV/Sales multiple of 10.5x.21
But, these multiples are warranted given how the SaaS business model
could continue to offer profitability potential.
Revenue Outlook of IaaS
According to Gartner, the market is dominated by five vendors who
account for nearly 80% of worldwide IaaS cloud market share in 2018.
These vendors are Amazon (47.8%), Microsoft (15.5%), Alibaba (7.7%),
Google (4.0%) and IBM (1.8%).

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The overall increased demand for managing services based on IaaS,
PaaS, and SaaS is both a powerful and effective reason for the trend of
cloud computing as well as cloud technology.
The increasing of public cloud services and its ecosystems has
improved rapidly for provisioning of both the technology and services by
the service providers. In which, a huge prospect is anticipating in this
market of business based on cloud computing as well as cloud
technology.
The growth increasing demand of development of the cloud storage
ecosystem and data centre hubs have given a new potential of
directions to plenty of businesses based on cloud computing and cloud
technology. In addition, the demands for big data management is the
one major important reasoning for causing the trend of cloud computing.
By a short and long shot, cloud computing is consistently increasing over
time, in which it draws in more audiences into its market. The usage of
the cloud computing is steadily increasing as it is not a trend in
technology, but more of an improved innovation technology to make
computing easier.

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Porter Five Force Analysis of Market
Competitive
Rivalry
(High)
Threat of
New
Entrants
(Low to
Moderate)
Bargaining
Power of
Customers
(High)
Threat of
Substitutes of
Products/Servi
ces (High in
SaaS, Low in
IaaS)
Bargaining
Power of
Suppliers
(Moderate)

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Cloud computing is ever-expanding myriad of providers, technologies,
products and services, lots of companies like Amazon, SAP, Google,
Oracle, Microsoft, IBM, Salesforce etc are already established players in
this segment.
Like any other industry, a handful of companies rise above the rest to
become market leaders. When we think about cloud service providers,
there are three names that top the list
 Google Cloud Platform
 Amazon Web Services
 Microsoft Azure
COMPITITORS & KEY PLAYERS

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Above mentioned three giants domination can be seen through
Gartner’s above chart wherein all of them fall in top right quadrant.

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Growth of Major Players 2018-2020
Amazon Web Services (AWS)
Amazon Web Services (AWS) is an Amazon company that was
launched in the year 2002. AWS is the most popular cloud service
provider in the world.
Amazon Web Services (AWS) is the world’s most comprehensive and
broadly adopted cloud platform, offering over 165 fully-featured services
from data centres globally. This service is used by millions of customers.
AWS’s revenue in the year 2018 was $25.6 billion with a profit of $7.2
billion. The revenue is expected to grow to $33 billion in 2019.

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AWS Services
AWS offers hundreds of services. Some of these include Virtual Private
Cloud, EC2, AWS Data Transfer, Simple Storage Service, DynamoDB,
Elastic Compute Cloud, AWS Key Management Service, Amazon
CloudWatch, Simple Notification Service, Relational Database Service,
Route 53, Simple Queue Service, CloudTrail, and Simple Email Service.
The following graphic is a list of the various categories of services
available in AWS. The right side of the list includes AWS’s featured
services.
The following graphic is a list of the various categories of services
available in AWS. The right side of the list includes AWS’s featured
services.

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AWS Security
Cloud security is the highest priority for AWS. As a customer, you will
benefit from a data center and network architecture built to meet the
requirements of the most security-sensitive organizations.
AWS security offers services such as infrastructure security, DDoS
mitigation, data encryption, inventory and configuration, monitoring and
logging, identity and access control, and penetration testing.
Microsoft Azure
Microsoft Azure is one of the fastest-growing clouds among them all.
Azure was launched years after the release of AWS and Google Cloud
but is still knocking on the door to become the top cloud services
provider. Microsoft Azure recently won a $10 billion US government
contract.
While Microsoft Azure revenue is difficult to predict, Microsoft broke
down its revenue of the last quarter into three categories, Productivity
and Business Processes, Intelligent Cloud, and Personal Computing.
The respective revenue was $11.0 billion, $11.4 billion, and $11.3 billion.
Microsoft’s Azure revenue is expected to grow between $33 billion to
$35 billion. This makes Azure one of the most profitable cloud services
in the world.
Azure Services
Azure offers hundreds of services within various categories including AI
+ Machine Learning, Analytics, Blockchain, Compute, Containers,
Databases, Developer Tools, DevOps, Identity, Integration, Internet of
Things, Management, Media, Microsoft Azure Stack, Migration, Mixed

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Reality, Mobile, Networking, Security, Storage, Web, and Windows
Virtual Desktop.
Azure, the Intelligent Cloud
What makes Azure the most attractive and intelligent is its exclusive
offering of Microsoft’s previous products and services in the cloud.
Azure’s cloud supremacy revolves around its intelligence. Azure
provides the most advanced and maximum number of intelligent
products and services.
Microsoft’s Windows operating system Windows and database SQL
Server are now available in the cloud via Windows Virtual Desktop.
Microsoft’s mixed reality technology (products for HoloLens) is also
available in the Azure cloud.
Microsoft’s TFS and VSTS are now available in azure via Azure
DevOps.
Microsoft’s popular Office suite, enterprise products such as Sharepoint,
and Power BI are now available in the cloud as Office 365 and
PowerXXX tools. Furthermore, some of the most popular and advanced

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developer tools and compilers are available in Azure via various UI,
workflows, and interfaces.
Microsoft is a leader in AI + Machine Learning and Microsoft Cognitive
Services is one of the company’s most advanced offerings.
Azure Security
Azure offers the most advanced security products and services. The
following table lists Azure security options:
Azure Stack
Azure Stack is a service of Azure that allows enterprises to run apps in
an on-premises environment and perform Azure services in your data
center. Azure Stack syncs with global Azure and upgrades when new
services and updates are available on Azure.
Google Cloud
Google cloud platform is Google’s cloud. Similar to AWS and Azure,
Google Cloud also offers similar services in various categories, including
compute, storage, identity, security, database, AI and machine learning,
virtualization, DevOps and more.
Here is a list of complete products and services categories Google
Cloud Platform services:

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AI and Machine Learning, API Management, Compute, Containers,
Data Analytics, Databases, Developer Tools, Healthcare and Life
Sciences, Hybrid and Multi-cloud, Internet of Things, Management
Tools, Media and Gaming, Migration, Networking, Security and Identity,
Server less Computing, and Storage.
Google products are also offered in the cloud, including G Suite, Google
Maps Platform, Google Hardware, Google Identity, Chrome Enterprise,
Android Enterprise, Apigee, Firebase, and Orbitera.
Google Cloud Services are available in 20 regions, 61 zones, and 200+
countries.
Google Cloud’s annual revenue is close to $8 billion.
Following table summarizes top key players and their offerings.

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Analysis of the cloud computing industry suggests, the trend is moving
rather rapidly as many companies are moving towards it. On a bigger
scale, the whole IT industry is constantly changing as cloud computing
market grows. Major IT companies are merging with others to gain
knowledge base, hardware, and etc. assets so that they can provide
better cloud computing experience to the consumers and the enterprise
communities.
IaaS, PaaS and SaaS are constantly evolving with technologies to
improve products as a service to the consumers and the enterprise
communities. Successful companies are those that have a greater
presence in the cloud computing market by merging and acquiring other
companies, small or big, in the same realm to provide a better cloud
computing product for the consumers. Competition is most needed to
drive innovation and improvement of cloud computing as it is in demand
on a large scale. Many cloud computing providers need to focus on the
potential threat to capture the market growth of cloud computing.
In addition, with the creation and help from CSA, the best practices and
standards set by it, provides useful information to help establish the
potential threats of cloud computing; which, in return, it promotes the
trend of cloud computing to keep moving forward as well as being a
strong market segment in the IT industry today.
Conclusion

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References
 “Worldwide Cloud 2020 Prediction” by IDC
 “Cloud Market Share” by kinsta.com
 “Cloud Migration Market (2021-2026)” by mordorintelligence.com
 “Cloud Look Segments” by seekingalpha.com
 “Google Cloud Platform Market Share” by Kinsta.com
 “Forecasting the Cloud Computing Market” by ironpaper.com
 “Cloud Computing Market 2021-2025” by prnewsire.com
 “Cloud Computing Market by Service Model” by
marketsandmarkets.com
 Miscellaneous surfing

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