Market Research Brief: Cloud Networking
SD-WAN Growth Outlook
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Intro: The Coming Multi-Cloud Networking Boom
The Information Technology (IT) industry is in the midst of its largest shift in history --
the move to cloud, powered by the need to drive digital transformation initiatives.
These initiatives are transforming all organizations, ranging from governments to
large business enterprises and the consumer.
The cloud has risen as the new IT platform for many reasons -- but the main reason is
that it delivers a more flexible infrastructure adaptable to fast-changing demands of
business applications. The enterprise transformation to cloud has become a C-Level
business decision. Business leaders view moving to the flexibility and agility of cloud
as the only way to fend off the existential threat of competitors who are now or will
soon emerge leveraging the cloud. Well established, on-premises infrastructure and
status quo application delivery is no longer a competitive edge.
Worldwide spending on public cloud services and infrastructure is expected to double
over the 2019-2023 forecast period, according to the latest update to the
International Data Corporation (IDC) Worldwide Semiannual Public Cloud Services
Spending Guide. With a five-year compound annual growth rate (CAGR) of 22.3%,
public cloud spending will grow from $229 billion in 2019 to nearly $500 billion in
2023.
There is evidence that this trend is accelerating and is still in the early stages of
development. Amazon started the trend, growing revenue on its public-cloud Amazon
Web Services (AWS) platform from zero in 2006 to nearly $40 billion in 2019. Now
Microsoft has been catching up, reporting recent year-over-year growth rate of 62%
on its Intelligent Cloud Platform, which had $10 billion in revenue in 2019. And
Google is now also coming on strong, with a growth rate of 62% on its Google Cloud
Platform (GCP) with revenue of $9 billion in 2019.
