Distributed Cloud: The Future of Cloud Computing
Cloud computing has revolutionized the way businesses manage
their IT infrastructure. However, as the demand for cloud services continues to
grow, so do the challenges of managing them. One emerging solution is the
distributed cloud, which promises to solve many of the issues associated with
traditional cloud computing.
Distributed cloud is a model in which cloud services are
decentralized and distributed across multiple locations. This model allows for
cloud services to be provided from a variety of locations, including public
clouds, private clouds, and edge devices. Distributed cloud technology enables
businesses to leverage the benefits of cloud computing while also maintaining
control over their data and applications.
One of the primary benefits of distributed cloud is its
ability to provide low-latency access to cloud services. With traditional cloud
computing, data must be transmitted from the user's device to a central data
center, which can result in slow response times. However, with distributed
cloud, data can be processed locally, reducing latency and improving the user
experience.
Another benefit of distributed cloud is its ability to
provide greater resilience and reliability. Traditional cloud computing relies
on a centralized data center, which can be vulnerable to outages and other
disruptions. With distributed cloud, cloud services are spread across multiple
locations, reducing the risk of downtime and improving overall system
reliability.
In addition, distributed cloud offers greater security and
compliance. By decentralizing cloud services, businesses can better control
access to their data and applications. This is particularly important for
businesses in regulated industries, such as healthcare and finance, which must
comply with strict data privacy and security regulations.
Distributed cloud also has the potential to improve
scalability and cost efficiency. With traditional cloud computing, businesses
must often provision more resources than they need in order to accommodate
spikes in demand. However, with distributed cloud, businesses can scale
resources up or down as needed, reducing costs and improving efficiency.
Dynamics of Distributed Cloud Market
Drivers in
Distributed Cloud Market
The market for distributed cloud computing solutions is
growing due to the increasing focus on improving user experiences. These
solutions allow businesses to process data in real time, leading to more
accurate and relevant data that can be used to create long-term customer
relationships. The rise in mobile technology, the need for minimum data
recovery, and the surge in digitization are also driving the market's growth.
Additionally, the ability of public cloud services to transition to better
distributed cloud computing with high security is contributing to the growth of
the distributed cloud market.
Restraints in
Distributed Cloud Market
However, the complexity of implementing distributed cloud
architecture globally is a major restraint for the market's expansion. The
unique architecture of each cloud service provider and specific requirements
for private cloud deployments and edge computing architectures make the design
and implementation of distributed cloud architecture challenging for IT
organizations. To overcome this challenge, IT organizations must combine the
capabilities of IaaS to supply security, visibility, and control of dedicated
network support and security. Despite this restraint, the adoption of cloud
technology, launch of new products, and increase in government involvement in
the implementation and promotion of cloud technology are expected to boost the
market growth.
Opportunities in
Distributed Cloud Market
The growth of distributed cloud architecture is expected to
be driven by the development of 5G network technology. Distributed cloud
infrastructure combines edge computing and cloud computing models, where edge
locations act as a network between physical locations, data centers, remote
locations, and on-premises. The increase in distributed cloud sites will
require mini data centers owned by service providers and organizations, which
will require strong and cost-effective network connectivity. This connectivity
can be managed and provided by the 5G network, which can offer network slicing.
Software can also play a vital role in advancing the 5G network and delivering
new network solutions to offer speed and security while reducing cost. Major
tech companies like Microsoft and Google are already making significant
investments in distributed cloud architecture to extend their infrastructure
and offer innovative solutions. The adoption of the Internet of Things (IoT) is
expected to further drive the growth of distributed cloud architecture.
Digitization is also a significant contributor to the growth of the market. It
involves the conversion of data into a digital format and is vital in improving
customer service and security. Companies are increasingly adopting software-as-a-service
(SaaS) solutions to offer digital services to their customers, which saves time
on business operations and drives market growth. Moreover, the adoption of
advanced technologies like blockchain, big data, and artificial intelligence is
further driving the growth of the market.
Challenges in
Distributed Cloud Market
Operating in a cloud environment poses the challenge of
performance fluctuations due to the sharing of resources among multiple
applications running on a single server. Additionally, cloud service providers
may limit bandwidth, causing further performance issues. This can lead to
costly additional charges if a company exceeds its quota. The outbreak of the
COVID-19 pandemic has accelerated the demand for distributed cloud services in
verticals such as BFSI, manufacturing, and remote work, as well as
entertainment platforms like video streaming. IT leaders recognize the
importance of a consistent operational experience between the edge and public
and private clouds, but face obstacles in establishing secure and reliable
connections between providers, navigating different support and consulting
processes, and working with various platform services. Distributed cloud
systems can address these challenges, making them an attractive solution for
organizations. Therefore, the COVID-19 pandemic has presented significant
opportunities for the distributed cloud system market to grow.
Ecosystem of Distributed Cloud Market
The Distributed Cloud market is anticipated to experience
significant growth during the forecast period due to various factors. Data
security is expected to be the second-largest contributor to market growth
based on service type. In order to improve visibility across distributed cloud
environments, it is essential to map out each component's dependency on the
distributed cloud. As cloud computing is highly scalable, it is necessary to
scale applications while considering the security implications. By using
distributed cloud architecture, confidential data resources and processes can
remain in the organization's private cloud or data center that is integrated
with the public cloud, which ensures the security of confidential information.
Furthermore, large enterprises are expected to be a
significant contributor to the Distributed Cloud market growth during the
forecast period based on organization size. Large enterprises aim to gain
market presence by adopting the latest technology to stay ahead of the
competition. The adoption of distributed cloud technology among large enterprises
is likely to be higher as compared to SMEs. Large organizations have customers
located in various geographical locations and therefore, focus on serving
customers in each location to improve customer experiences and build strong
relationships. To accommodate a large number of customers and data, these
organizations are now making a strategic shift to the latest technologies to
become cloud-driven companies. Therefore, large organizations have accelerated
cloud adoption with the advent of the distributed cloud.
Edge computing is the practice of processing data close to
the source of its origin, rather than sending it to a centralized location.
This reduces the time it takes to process data and improves the overall
performance of distributed cloud systems.
Another significant development in the Distributed Cloud
Market is the increasing demand for hybrid cloud solutions. Hybrid cloud
solutions combine public cloud services with private cloud infrastructure,
allowing organizations to customize their cloud environments to their specific
needs. Hybrid cloud solutions are becoming more popular because they offer
greater flexibility, security, and cost-efficiency compared to traditional
cloud solutions.
Moreover, the COVID-19 pandemic has also had an impact on
the Distributed Cloud Market. With remote work becoming the norm, there has
been a surge in demand for cloud-based collaboration tools and remote access
solutions. This has driven the adoption of distributed cloud systems, as they
enable organizations to provide seamless and secure remote access to their
employees.
During the forecast period, the retail and consumer goods
vertical is expected to experience a higher Compound Annual Growth Rate (CAGR).
This is attributed to the growing purchasing power of customers and the
increasing demand for mobility solutions in this sector. The retail and
consumer goods vertical handles a significant amount of customer data, which is
used to improve customer behavior and maintain a good relationship. During
festive seasons, the retailers face challenges with data handling and can
address this by shifting their non-critical workloads to the public cloud while
creating additional infrastructure. This move is likely to support the adoption
of hybrid cloud solutions, which enable the utilization of distributed cloud
technology in this sector.
The Asia Pacific market is anticipated to grow at the
highest CAGR during the forecast period. The region comprises countries with a
complex ecosystem of startups, governments, SMEs, and large multinational
companies that provide valuable Information and Communications Technology (ICT)
solutions. The region has been experiencing rapid advancements in cloud
computing, IoT, and telecommunications, leading to the adoption of cloud-based
strategies by several organizations. The rising levels of urbanization,
government support for the digital economy, and technological innovation are
also driving the technological advancements in the region. Although North
America currently dominates the distributed cloud industry, the Asia Pacific
region is expected to witness the highest growth rate during the forecast
period. This is attributed to the adoption of distributed cloud by numerous
Small and Medium-sized Enterprises (SMEs) for cost-effectiveness and the
expansion of digital infrastructure in developing countries such as India and
Singapore in the region.
During the forecast period, the edge computing segment has
emerged as the dominant contributor to the growth of the distributed cloud
market. It is projected to continue its leadership in the coming years due to
the increasing number of intelligent applications adopting distributed cloud.
On the other hand, the intelligent transportation segment is expected to
witness the highest CAGR in the forecast period. This growth can be attributed
to the adoption of distributed cloud to gain faster data insights and integrate
automation technologies to enhance the customer experience.
Dominating Companies in Distributed Cloud Market
- ALIBABA CLOUD
- AMAZON WEB SERVICES
- COMMVAULT
- F5
- GOOGLE
- IBM
- MICROSOFT
- TERADATA
- VMWARE
- ORACLE
- WIND RIVER SYSTEMS
- SCC
- COHESITY
- CUBBIT
- PHOENIXNAP
- PLURIBUS NETWORKS
- ANYSCALE
- PANZURA
- PLATFORM9
- ZEDEDA
- HAZELCAST
- Axway
- CloudSigma AG
- Databricks
- DigitalOcean
- Liquid Web, LLC
- MassiveGRID Inc.
- Rackspace Technology
- Salesforces Inc.
- SAP SE
- Verizon
Recent Developments in Distributed Cloud Market
- In November 2020, IBM acquired Instana, a leading provider
of application performance monitoring (APM) solutions for hybrid cloud and
microservices. The acquisition strengthens IBM's position in the APM market,
allowing IBM to provide a comprehensive set of APM tools for developers and IT
teams.
- In December 2020, Hewlett Packard Enterprise (HPE) announced
its acquisition of Silver Peak, a leading provider of SD-WAN (software-defined
wide area network) solutions. The acquisition enhances HPE's edge-to-cloud
portfolio and strengthens its position in the rapidly growing SD-WAN market.
- In June 2021, Equinix, a leading provider of colocation data
center services, announced a strategic partnership with Google Cloud. The
partnership enables Equinix customers to access Google Cloud services via
Equinix's global network of data centers, providing greater choice and
flexibility for enterprises seeking to leverage the cloud.
- In October 2021, VMware announced its acquisition of
SaltStack, a provider of intelligent automation for IT operations (AIOps) and
security operations (SecOps) in the cloud and data center. The acquisition
strengthens VMware's position in the AIOps and SecOps markets and enhances its
ability to provide comprehensive cloud management and security solutions.
- In December 2021, Red Hat announced its acquisition of
StackRox, a provider of Kubernetes-native security solutions for containerized
applications. The acquisition enhances Red Hat's OpenShift platform and
strengthens its position in the rapidly growing Kubernetes and container
security market.
- In March 2022, IBM announced its acquisition of Turbonomic,
a leader in Application Resource Management (ARM) and Network Performance
Management (NPM) software. The acquisition is expected to help IBM strengthen
its AI-powered automation capabilities, including for distributed cloud
environments.
- In December 2021, Microsoft announced its acquisition of
CloudKnox Security, a provider of cloud infrastructure entitlement management
solutions. The acquisition is expected to help Microsoft bolster its distributed
cloud security offerings.
- In September 2021, VMware announced its acquisition of
SaltStack, a leader in infrastructure automation and configuration management
software. The acquisition is expected to help VMware enhance its distributed
cloud automation capabilities.
- In May 2021, Hewlett Packard Enterprise (HPE) announced its
acquisition of Determined AI, a provider of machine learning platform
solutions. The acquisition is expected to help HPE expand its AI and machine
learning offerings for distributed cloud environments.
- In January 2021, Cisco announced its acquisition of Acacia
Communications, a provider of high-speed coherent optical interconnect technologies.
The acquisition is expected to help Cisco expand its distributed cloud
networking capabilities.
Overall, distributed cloud is a promising technology that
has the potential to revolutionize cloud computing. As businesses continue to
demand faster, more reliable, and more secure cloud services, distributed cloud
is poised to become an increasingly important part of the cloud computing
landscape.
1.
Research Sources
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detailed and related research methodology focussed on estimating the market
size and forecasted value for the given market. Comprehensive research
objectives and scope were obtained through secondary research of the parent and
peer markets. The next step was to validate our research by various market
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segments and sub-segments.
Research Methodology
1.1. Secondary Research
The secondary research study involves various sources and databases used
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marketing managers of tire 1,2, and 3 companies across the globe.
1.3. Data Triangulation
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at Zettabyte Analytics focus on at least three sources to ensure a high level
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