The global hybrid cloud market is characterized by the presence of several regional and local providers.
According to Wantstats analysis, Amazon.com Inc. is currently leading the global hybrid cloud market. The company, through its Amazon Web Services segment, offers cloud platform and services. The company offers a wide solutions and services portfolio for hybrid cloud market which includes Amazon Workdocs, AWS Snowball Edge, and AWS DataSync. Amazon has a robust global presence across the North American and international markets. The company invests significantly in research and development, including acquisitions and partnerships, to enhance its technology and existing products and services, and to introduce new solutions and services that customers can use effectively and easily. AWS in collaboration with VMWare offers solutions and services which help its customers to simplify the operations in hybrid cloud environment. AWS Outposts, a hybrid cloud solution offered by the company provides infrastructure, services, APIs, management tools, support, and operating model, which helps its customers use it across virtually any data center, co-location space, or on-premises facility.
Microsoft Corporation occupies the second position in the global hybrid cloud market. The company has its presence in the hybrid cloud market through its Azure Sentinel cloud security platform, Azure Hybrid Cloud Stack, and Hybrid Cloud Print portfolio. The company is focused on offering advanced capabilities to its hybrid cloud platform. The Azure Sentinel cloud security platform launched by the company in May 2019 uses Artificial Intelligence technology for filtering data with enhanced security capabilities. The company’s high expertise in digital technology such as cloud computing and operating systems and global presence has helped it gain a competitive edge in the global hybrid cloud market.
IBM Corporation is the third-largest player in the global hybrid cloud market. The company has its presence in the global hybrid cloud market through the hybrid cloud solutions and services such as IBM Hybrid Multicloud platform, IBM Cloud Pak, IBM Cloud DevOps for Hybrid Deployment, and IBM Cloud Management and Operations Consulting. The company also emphasizes partnerships with and acquisitions of various leading technology companies such as Avaya, Primerica, Salesforce.com, and Red Hat, which helps to broaden its offerings with advanced capabilities, increase its market presence and technical expertise which benefits the company in maintaining its position in the global hybrid cloud market.
VMWare currently occupies the fourth spot in the global hybrid cloud market. The company focuses on innovation and the development of unified hybrid cloud solutions and services. The hybrid cloud portfolio offered by the company includes platforms and services such as vCloud Air, vRealize Suite, VMware vSphere, and VMware vSAN. The company has high expertise in cloud and virtualization market which provides it with a competitive edge in the market. The company invests heavily in research and development in order to constantly upgrade its products to meet the changing demands of the customers.
Google has occupied the fifth position in the global hybrid cloud market. The company has its presence in the hybrid cloud market through its Hybrid cloud platform, Anthos, and other related product and services. The hybrid cloud platform offered by the company is designed with flexibility and scalability, which helps in the easy development and management of hybrid applications. The company makes alliances and collaborations with other businesses to strengthen its competitive position. The company is heavily investing in research and development and launches new products to enhance their customer’s experience. The company maintains a healthy relationship with its channel partners to broaden its customer base and geographic presence.
Michael Porter’s five forces model gives a framework that models the global hybrid cloud market. The strategic business managers, trying to create an edge over competitive firms in the global hybrid cloud market can utilize this model to better comprehend the industry connection in which the firm operates. The components of each of the forces and the degree of impact of each component in the context of the global hybrid cloud market have been broken down and analyzed.
THREAT OF NEW ENTRANTS The threat of new entrants in the hybrid cloud market is considerably low as the capital requirement associated with the setup of hybrid cloud services is huge. Moreover, the key players in the hybrid cloud market have established their brand identity through their strong presence in the cloud computing market. Additionally, the monopoly of key players such as Microsoft Corporation, Amazon Web Services, and IBM Corporation makes the entry of new players in the hybrid cloud market difficult.
BARGAINING POWER OF SUPPLIERS The suppliers in the global hybrid cloud market include IT infrastructure and data center facility providers. The bargaining power of the suppliers in the hybrid cloud market remains moderate owing to the requirement of high capital associated with switching infrastructure and data center facility providers. However, the level of differentiation between the facility services offered is considerably low which lowers the bargaining power of suppliers making the overall bargaining power moderate.
THREAT OF SUBSTITUTES The threat of substitutes in the global hybrid cloud market is high due to the presence of a major substitute to hybrid cloud services in form of multi-cloud services. The multi-cloud service model allows organizations to sign up for public cloud services of multiple cloud vendors which eliminates the issue of vendor lock-in. Other benefits offered by multi-cloud service model include increased agility and scalability, reduction of costs and improved disaster recovery which are similar to those offered in the hybrid cloud service model. The buyer propensity towards this substitute is relatively moderate due to fairly recent introduction of this service model.
BARGAINING POWER OF BUYERS The buyers in the hybrid cloud market are large enterprises as well as small- and medium-sized enterprises in different industry verticals including BFSI, healthcare, retail, manufacturing, media & entertainment, transportation, and IT & telecom among others. The vendors are well-established in the hybrid cloud computing market with strong brand names. The number of buyers in the market is relatively high as compared to the hybrid cloud solution providers which increases the bargaining power of buyers. The cost involved in switching vendors is low and the process is relatively less complex compared to public cloud which further strengthens the bargaining power of buyers.
COMPETITIVE RIVALRY The rapid increase in the adoption of hybrid cloud services has increased the competitiveness of the hybrid cloud market. The key players in the hybrid cloud market undergo frequent developments and update their services in order to deliver best-in-class solutions based on the changing market needs. Rivalry among key players such as Amazon Web Services, Microsoft Corporation, and IBM Corporation is high due to continuous developments in the cloud computing technology and the high demand for the same.
