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Weekly CloudNews: How Has the Cloud Market Grown in the Last Year?

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Welcome to this week’s edition of CloudBolt’s Weekly CloudNews!

Here are the blogs we’ve posted this week:

With that, onto this week’s news:

How has the cloud market grown in the last year?

Jenny Darmody, SiliconRepublic, June 4, 2021

“Data from Synergy Research Group suggests that enterprise spending on cloud infrastructure services ramped up aggressively in 2020, growing by 35pc compared to the previous year and reaching almost $130bn. Meanwhile, enterprise spending on data centre hardware and software dropped by 6pc.

‘Clearly companies have been voting with their wallets on what makes the most sense for them. We do not expect to see such a drastic reduction in spending on enterprise data centres over the next five years, but for sure we will continue to see aggressive cloud growth over that period.’”

Massive Ransomware Hits Likely to Hasten Cloud Security Shift

Jake Holland, Bloomberg Law, June 4, 2021

“A spate of recent ransomware attacks on U.S. software, energy, and food industry giants is likely to drive adoption of cloud security technology across sectors. Use of cloud-based tools in lieu of traditional information technology security may help companies better guard against cybercrime and the reputational and legal risks that accompany such hits, attorneys and industry analysts say.

‘The cloud security and software market is still under-penetrated but growing each year, as companies recognize the value of protecting systems from weaknesses imposed by remote work and an uptick in hacks’, said Mandeep Singh, a technology industry analyst at Bloomberg Intelligence.”

Hooked on public cloud? It could be eating a big chunk of your margins

Liam Tung, ZDNet, June 3, 2021

“At some point in a software startup’s journey, after it has scaled up and gained millions of users, there might come a point at which the cost of cloud harms margins, which may prompt companies to start repatriating computing infrastructure. But can they do this after growing up on variable IT costs and dodging capital expenditure?

Looking at Dropbox, it reported improving gross margins from 33% to 67% between 2015 to 2017, primarily because it moved workloads from the public cloud to cheaper in-house and co-location infrastructure. That happened as its growth rate was falling.”

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