Shift Toward Enhanced Distributed Cloud Computing to Fuel Distributed Cloud Market Growth
Organizations are progressively seeking secure and reliable cloud solutions to meet their performance needs and compliance requirements. Companies are gradually concerned about the security of their data and applications in the cloud. By adopting distributed cloud solutions, they can benefit from high-end security features such as encryption, access controls, and data protection mechanisms. This enhanced security helps organizations protect their sensitive information and ensure compliance with regulatory requirements. Compliance with industry guidelines and data protection laws is a critical concern for organizations. Enhanced distributed cloud computing solutions provide features and controls that help organizations meet their compliance requirements. These solutions offer data residency options, allowing organizations to store their data in specific geographic regions to comply with local regulations. Additionally, distributed cloud architectures provide redundancy and disaster recovery capabilities, ensuring business continuity and compliance with data protection regulations. The shift toward enhanced distributed cloud computing is expected to contribute to the distributed cloud market growth.
Distributed Cloud Market: Industry Overview
The distributed cloud market analysis has been carried out by considering the following segments: application, service, enterprise size, industry vertical, and geography. In terms of application, the distributed cloud market is segmented into edge computing, content delivery, the Internet of Things, and others. Based on service, the market is categorized into data security, data storage, networking, and others. Based on enterprise size, the market is segmented into large enterprises and SMEs. Based on industry vertical, the market is segmented into BFSI, healthcare, retail & e-commerce, manufacturing, IT & telecom, energy & utilities, media & entertainment, government & defense, and others. The distributed cloud market is geographically segmented into North America, Asia Pacific, Europe, the Middle East & Africa, and South America.
The growing adoption of edge computing technology is observed as a key trend contributing to the distributed cloud market’s growth. Edge computing reduces latency for end users by moving computation work to local devices, such as smartphones and laptops, rather than offloading the work to the cloud. It also reduces network congestion by eliminating the middleman in the connection between users and servers. Additionally, edge computing enhances privacy by minimizing the transmission of sensitive information to the cloud and shifts the ownership of collected data from service providers to end users. Google LLC launched its Google Distributed Cloud Edge in April 2022, which features a fully managed hardware and software stack. It includes an operational infrastructure, an open cloud-native execution environment, and a multi-cloud management system. This solution supports enterprise use cases such as anomaly detection with AI, video processing, and local data processing before sending it to the cloud. By enabling edge computing near end locations, distributed cloud computing allows for processing considerable amounts of data closer to the end users while maintaining data security and compliance.
Several key factors are leading the growth of the distributed cloud market. One of these factors is the increasing need for businesses to process data at their source per local data privacy regulations. Another factor is the growing demand for advanced platforms that provide businesses with better visibility over hybrid or multi-cloud setups. Additionally, the rising demand for data recovery, the widespread use of mobile technologies, and the high importance placed on data security are influencing the distributed cloud market. Furthermore, there is an increasing need to enhance user experience and streaming video content through faster content delivery, which is anticipated to create various growth opportunities for stakeholders in the future.
Distributed Cloud Market: Competitive Landscape and Key Developments
Alibaba Cloud; Amazon Web Services, Inc.; Broadcom; F5, Inc.; Google; IBM; Microsoft; Oracle; RACKSPACE TECHNOLOGY; and Salesforce, Inc. are among the prominent players profiled in the distributed cloud market report. Several other essential market players were analyzed for a holistic view of the distributed cloud market and its ecosystem. The report provides detailed market insights, which help the key players strategize their market growth. A few developments are mentioned below:
- In March 2023, F5 introduced a multi-cloud networking capability that aims to extend the coverage of application and security services across multiple public clouds, hybrid environments, native Kubernetes setups, and edge locations. The primary objective of this capability is to provide enterprises with a seamless and efficient way to manage their applications and ensure their security across diverse cloud infrastructures. By leveraging F5’s advanced networking technology, businesses can now extend their application and security services to different cloud platforms, regardless of whether they are public, private, or a combination of both.
- In November 2022, Equinix, Inc., a leading global provider of digital infrastructure solutions, and VMware, Inc., a renowned technology company, announced an enhanced global partnership aimed at offering innovative digital infrastructure solutions and multi-cloud services to their customers. The companies introduced VMware Cloud on Equinix Metal in collaboration. This new distributed cloud service aims to provide a high-performing, secure, and cost-effective cloud option to support enterprise applications. This service combines VMware-managed and supported cloud infrastructure with Equinix’s interconnected, global Bare Metal as a service offering. By extending customers’ cloud environments into distributed metro locations, the service caters to the performance requirements of critical business operations at the edge while maintaining the integrity of enterprise workloads.