Multi-Cloud Management Market Growth & Trends
The global multi-cloud management market size is estimated to reach USD 32.75 billion by 2028, registering a CAGR of 26.3% from 2021 to 2028, according to a new study by Grand View Research, Inc. The strong emphasis of organizations on automation and efficiency, and subsequently, on having effective governance processes in place, is expected to drive the adoption of multi-cloud management solutions over the forecast period. Growing concerns over the reliability of single cloud are also anticipated to play a decisive role in driving the adoption of multi-cloud management solutions. However, concerns over data security and privacy protection coupled with the hardships encountered in redesigning the network for cloud-based infrastructure can restrain the growth of the market.
Independent Software Vendors (ISVs) are increasingly relying on virtualization and cloud as they are gradually evolving from software developers to software providers. Cloud-based infrastructure guarantees greater scale, service customization, and flexibility. At this juncture, Cloud Service Providers (CSPs) are also trying aggressively to make a foray into the market by adopting, managing, and supporting several cloud products, simultaneously. Foraying into the market would potentially allow CSPs to offer adequate flexibility to ISVs in terms of selecting cloud services according to their changing needs.
The outbreak of the COVID-19 pandemic has played a vital role in driving the demand for multi-cloud management solutions. The outbreak of the pandemic and the subsequent restrictions imposed by various governments as part of the efforts to arrest the spread of coronavirus has triggered the demand for the latest, advanced digital technologies and a well-established, strong network. Having realized that opting for a cloud-based infrastructure would help ensure a winning edge over competitors; organizations are aggressively transitioning their workloads to the cloud, thereby driving the demand for multi-cloud management solutions.
Concerns over vendor lock-in have always been discouraging organizations from opting for cloud services. Vendor lock-in can disrupt business operations and force organizations to compromise on performance. However, organizations have realized that a vendor lock-in situation can be avoided by opting for multiple cloud platforms rather than relying on a single cloud vendor. As a result, single cloud customers are increasingly adopting multi-cloud management solutions.
Advances in technology and the higher levels of flexibility the latest cloud computing technologies can offer are expected to drive the growth of the market over the forecast period. As such, market players are pursuing various strategies, such as product differentiation, launching new products, mergers and acquisitions, and strategic partnerships and collaborations to increase their market share, cement their position in the market, and expand their business. For instance, Accenture announced in December 2020 that the company has helped Rakuten Mobile, from business model design to construction and operation, in launching the latter’s fully virtualized cloud-native mobile network.
Multi-Cloud Management Market Report Highlights
- The managed services segment is expected to witness significant growth over the forecast period. Managed services are allowing the users of various cloud platforms, such as AWS, Google Cloud Platform, and Azure, to boost scalability, reduce expenses, and add more agility to their application architecture
- The small and medium enterprise segment is expected to expand at the highest CAGR from 2021 to 2028. While SMEs are aggressively scouting for business-driven tools and solutions, the increasing number of service providers foraying into the market is offering SMEs several options to choose from, thereby driving the growth of the segment
- Manufacturing is anticipated to emerge as the fastest-growing segment over the forecast period. Multi-cloud management allows manufacturing entities to distribute their workload across multiple clouds and opt for multiple cloud deployment models, such as IaaS, PaaS, and SaaS, depending upon the application and data
- Asia Pacific is anticipated to emerge as the fastest-growing regional market over the forecast period owing to the continued adoption of cloud-based solutions and the growing preference for the latest technologies, such as IoT and edge computing