Public Cloud - Puerto Rico

Puerto Rico

In Puerto Rico, revenue in the Public Cloud market is projected to reach US$367.60m in 2024.
Platform as a Service dominates the market in Puerto Rico with a projected market volume of US$113.40m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 16.57%, resulting in a market volume of US$791.30m by 2029.
In global comparison, the most revenue will be generated the United States, which is expected to reach US$388.50bn in 2024.
Puerto Rico's public cloud market is witnessing a surge in demand as local businesses increasingly prioritize digital transformation and remote work solutions.

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

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Analyst Opinion

The Public Cloud market in Puerto Rico is experiencing steady growth due to the increasing demand for digital solutions, growing awareness of the benefits of cloud services, and the convenience they offer. The sub-markets of IaaS, PaaS, SaaS, BPaaS, DaaS, and DRaaS are driving this growth and contributing to the average growth rate. Factors such as the availability of reliable internet infrastructure, government support, and a skilled workforce are impacting the market's growth rate.

Customer preferences: As Puerto Rico continues to rebuild after the devastation of Hurricane Maria, the demand for reliable and efficient cloud-based solutions has increased. This trend is driven by a growing preference for remote work and collaboration, as well as a need for secure data storage and accessibility. Additionally, the rise of e-commerce and online shopping has led to a surge in demand for cloud-based logistics and inventory management services.

Trends in the market: In Puerto Rico, the Public Cloud Market is experiencing a surge in demand due to the increasing adoption of cloud-based solutions by businesses and organizations. This trend is expected to continue as more companies realize the cost-saving benefits and flexibility of using public cloud services. Additionally, there is a growing trend of hybrid cloud adoption, where companies use a combination of public and private clouds to meet their specific needs. This trajectory of trends highlights the significance of the public cloud market in Puerto Rico and its potential to drive economic growth in the region. Industry stakeholders, such as cloud service providers and businesses, will need to stay abreast of these trends and adapt their strategies accordingly to remain competitive in this evolving market.

Local special circumstances: In Puerto Rico, the Public Cloud Market is influenced by its unique geographical location in the Caribbean, serving as a gateway between North and South America. This has led to a diverse customer base, with clients from both regions seeking cloud solutions. Additionally, the island's cultural ties to the United States have made it an attractive market for American tech companies, leading to partnerships and investments. However, Puerto Rico's regulatory framework presents challenges, such as limited broadband infrastructure and data privacy laws, that can impact market growth and adoption.

Underlying macroeconomic factors: The Public Cloud Market in Puerto Rico is heavily influenced by macroeconomic factors such as global economic trends, national economic health, fiscal policies, and financial indicators. The market is particularly susceptible to changes in the global economy, as Puerto Rico's economy is closely tied to the United States. National economic health and fiscal policies also play a significant role in the growth of the Public Cloud Market, as they impact the overall business climate and investment opportunities in the country. Additionally, Puerto Rico's financial indicators, such as GDP and inflation rates, can either attract or deter foreign investment in the Public Cloud Market.

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.