Public Cloud - Azerbaijan

Azerbaijan

Revenue in the Public Cloud market is projected to reach US$257.60m in 2024.
Software as a Service dominates the market with a projected market volume of US$102.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.25%, resulting in a market volume of US$595.70m by 2029.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Market

Region

Region comparison

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Analyst Opinion

The Public Cloud market in Azerbaijan is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of cloud services, and the convenience of online access to various business processes. The market's average growth rate may be impacted by factors such as the availability of reliable internet infrastructure and the level of government support for digital transformation.

Customer preferences: The growing adoption of public cloud services in Azerbaijan is driven by the increasing demand for remote work and collaboration solutions, as well as the need for secure data storage and management. This trend is further fueled by the country's growing tech-savvy population and the government's push for digital transformation. As a result, there has been a rise in the use of cloud-based software and platforms for business operations and personal use, indicating a shift towards a more digitally-driven lifestyle.

Trends in the market: In Azerbaijan, the Public Cloud Market is experiencing a surge in demand due to the increasing adoption of cloud-based solutions in various industries. This trend is expected to continue, with more businesses realizing the benefits of cost savings and flexibility offered by the cloud. As a result, there is a growing need for skilled professionals to manage and optimize these services. This trend also signifies a shift towards a more digitized and interconnected economy in Azerbaijan, with potential implications for industry stakeholders such as cloud service providers, IT companies, and businesses looking to leverage the benefits of the cloud.

Local special circumstances: In Azerbaijan, the Public Cloud Market is experiencing significant growth due to the country's efforts to modernize its economy and attract foreign investment. The government has implemented policies to support digital transformation and has invested in infrastructure to improve internet connectivity. Additionally, the country's favorable business environment and strategic location between Europe and Asia make it an attractive hub for cloud computing services. However, cultural factors such as a preference for local providers and language barriers may also impact market dynamics.

Underlying macroeconomic factors: The Public Cloud Market in Azerbaijan is heavily influenced by macroeconomic factors such as economic stability, government policies, and investment in technology infrastructure. With the government's focus on diversifying the economy and reducing dependence on the oil and gas sector, there is a growing demand for cloud-based solutions to support digital transformation across industries. The country's favorable business environment and strategic location also attract foreign investment, further driving the growth of the Public Cloud Market. Additionally, the increasing adoption of cloud computing by small and medium-sized enterprises to reduce operational costs and improve efficiency is contributing to the market's expansion.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.