Lionel Sujay Vailshery
Research expert covering cloud computing and emerging tech industries
Digitalization - challenges & benefits of the cloud - statistics & facts
The adoption of cloud computing has witnessed remarkable growth as organizations increasingly recognize its transformative potential in driving digitalization. The global cloud services market, valued at around 675 billion U.S. dollars in 2024, reflects the substantial investments made by businesses to harness the benefits of cloud technologies. Projections suggest a continued upward trajectory, with growth of approximately 22 percent in 2025, placing the market at around 824 billion U.S. dollars, underscoring the sustained momentum in cloud adoption. Wider adoption of generative artificial intelligence (GenAI) that is compute-intensive will drive the demand for Infrastructure in the cloud, with a forecast growth of 29 percent for Infrastructure as a Service (IaaS) for 2025.
Cloud challenges
The paradigm shift in cloud computing is accompanied by challenges, most notably cloud spending, security, data privacy, and regulatory compliance concerns. Overcoming these challenges demands new approaches to cloud computing. One approach to overcome cloud spending challenges is to adopt hybrid and multiple cloud models. Hybrid models involve using public and private cloud offerings from multiple cloud providers to distribute workloads and reduce the risk of downtime, resulting in cloud spending cost-cutting. The other is a commitment to comprehensive cloud security measures and evolving compliance standards to ensure data integrity and confidentiality.
Cloud benefits
Amid these challenges, the advantages of cloud adoption are compelling. Organizations using cloud infrastructure benefit through stronger security, improved efficiency, and simplified compliance and reduced risks within their IT infrastructure. Financial benefits are significant, with leaders reporting a return on investment within a year for cloud investments, demonstrating the cost-effectiveness of cloud solutions. Moreover, the scalability inherent in cloud services empowers businesses to respond dynamically to market demands, fostering innovation and bolstering competitiveness in an ever-changing digital landscape. As the cloud ecosystem matures, companies strategically leveraging these technologies position themselves for sustained success in their digital transformation endeavors.
