The public cloud market has witnessed significant growth over the forecast period due to increasing penetration of cloud services among smes and increasing demand for AI, machine learning, and the internet of things.There are several domestic, regional, and global players operating in the public cloud market who continuously strive to gain a significant share of the overall market. During the study, Wantstats has analyzed some of the major players in the Public cloud market who have contributed to the market growth. These include Alibaba Group Holding Limited, Amazon.com Inc, Adobe Inc, Google LLC, IBM Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com Inc, SAP SE, Fujitsu Limited, Cisco Systems Inc, VMware Inc, Hewlett-Packard Enterprise, Tencent Cloud, OVH Cloud, LUMEN, Rackspace Cloud Cloud.
Among these, AWS, Microsoft, Salesforce, Google, and Alibaba are among the top 5 players in Public cloud market. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.
Amazon's strategy is based on leveraging its technological capabilities. It follows a cost leadership strategy aimed at offering maximum value to its customers at affordable rates. To increase its sales, the company focuses on improving all aspects of customer experience, including affordability, ease of use, and reliability. To enhance its corporate network and increase its technical expertise, Amazon acquires and builds partnerships with several technology giants. It has set several strategic priorities to drive growth and improve revenue in the upcoming years. The company applies product development as a supporting strategy for its business growth
Microsoft’s business strategy is focused on technological innovations, which helps it maintain its position in a competitive environment. The company is focusing on developing its intelligent cloud portfolio by investing heavily in its Windows Server and virtualization platform. The company prioritizes investments to capture the expanding market opportunities through product innovations complemented by acquisitions and partnerships. It strategizes to broaden its product offerings and reach new audiences in the global market.
Salesforce pursues the strategy of expansion and product diversification. It focuses on joint investments and R&D projects as a key strategy to meet its digital vision. The company concentrates on streamlining inventories, and strengthens operational capabilities. It aims to provide differentiated products and services to customers by integrating the latest technologies into existing products.
Google follows both organic as well as inorganic growth approaches. The company invests significantly in R&D in strategic focus areas such as machine learning, cloud, data center, and AI technologies to innovate its products and solutions portfolio. Machine learning techniques are used in advertising tools, data centers, and self-driving cars to drive innovations and maintain a competitive position in the market. Furthermore, Google is making heavy investments to increase its market presence
Alibaba online sales are no longer a choice but a need for brick-and-mortar merchants on the retail side. While such transformation offers great opportunity, it also necessitates concentration, inventiveness, and agility in building the requisite strategic competencies. Their long-term plan is based on environmental, social, and governance obligations. They remain committed to enhancing our leadership and developing core competencies in three key areas: consumer, cloud, and globalization.
Threat of New Entrants
The threat of new entrants in the public cloud market is considerably low as the capital requirement associated with the setup of public cloud services is very high. Moreover, the key players in the public 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 public cloud market difficult. Thus, the overall threat of new entrants in the global public cloud market is expected to be low throughout the forecast period.
Bargaining Power of Suppliers
The suppliers in the global public cloud market are the IT infrastructure and data center facility providers. The capital required to switch infrastructure and data center facility providers is high. However, the level of differentiation between the facility services offered is considerably low, which lowers the bargaining power of suppliers. Thus, the overall bargaining power of suppliers in the global public cloud market is expected to be moderate during the forecast period.
Threat of Substitutes
The threat of substitutes in the public cloud market is generally low. The unique value proposition of public cloud services, which provide on-demand access to computing resources and the ability to rapidly scale infrastructure, is difficult to replicate using traditional IT infrastructure or other alternatives.
Bargaining Power of Buyers
Buyers in the public cloud market have moderate bargaining power. This is because there are many cloud providers to choose from, and buyers can switch between them relatively easily. However, cloud providers have significant switching costs, which can reduce buyers' bargaining power. Additionally, cloud providers offer a range of services, and buyers may be dependent on specific providers for certain services.
Intensity of Rivalry
The rapid increase in the adoption of public cloud services has increased the competitiveness in the public cloud market. The key players in the public cloud market undergo frequent developments and update their services 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 cloud computing technology and the high demand for the same. Thus, the overall intensity of rivalry in the global public cloud market is expected to be high during the forecast period.
