The cloud has become so essential to business growth in the last few years that retailers who refuse to adopt it could soon pay the consequences. In fact, storing data in a safe centralized environment has become a modern-day necessity for all of us, to efficiently meet both our professional and personal needs. With cloud computing, the days when you could accidentally delete your smartphone photos or all your customers’ personal information are thankfully long gone.
Technology has revolutionized the way customers shop, by giving them unlimited knowledge right at their fingertips. What’s more, today’s shoppers’ ever-increasing expectations are forcing retailers to step up their game, ready or not. Your clients not only demand a frictionless customer experience, but they also expect it to be personalized and memorable wherever and whenever they choose to engage with you.
Retailers who are following a cloud-first strategy are sure to reap the financial benefits as well. Moving to the cloud can significantly reduce IT costs and time spent on managing existing systems, integrating new systems, and server and hardware maintenance, resulting in a lower total cost of ownership and more time to focus on your core business functions.
Cloud computing can also help reduce customer churn by allowing retailers to access data in a safer and more efficient way, which in turn helps them keep the customer relationship alive (Think with Google). A reliable and scalable platform, that can handle peaks in traffic – during both the holidays and major events – is a platform that meets all the criteria to stand the test of time.
Here are the top 20 cloud computing statistics every retailer should be aware of.
Cloud services are expected to grow exponentially by 2020
- “The public cloud services market will grow rapidly to $236 Billion in 2020” (Forrester)
- “Cloud-based security services will be worth $9 billion in 2020” (Gartner)
- “Cloud computing is projected to increase from $67B in 2015 to $162B in 2020 attaining a compound annual growth rate (CAGR) of 19%”(Forbes)
- “By 2020, a corporate ‘no-cloud’ policy will be as rare as a ‘no-internet’ policy is today” (Gartner)
Cloud demand accounts for related IT market growth
- “From 2012 to 2015, cloud demand accounted for 70% of related IT market growth, and Bain expects it to represent 60% of growth through 2020” (Forbes)
Public cloud services spending will soon increase even more
- “Worldwide public cloud services spending forecast to reach $122.5 Billion in 2017” (IDC)
- “Spending on public cloud computing in Canada will double from $2.3B CAD in 2016 to $5.5 billion CAD in 2020” (Forbes)
The use of SaaS and PaaS solutions is about to become the norm
- “More than 50 percent of new 2017 large-enterprise North American application adoptions will be composed of SaaS or other forms of cloud-based solutions” (Gartner)
- “Platform-as-a-Service (PaaS) adoption is predicted to be the fastest-growing sector of cloud platforms according to KPMG, growing from 32% in 2017 to 56% adoption in 2020.” (Forbes)
A successful SaaS business has a negative churn rate
- “The very best SaaS business has a negative churn rate, and will have a Dollar Retention Rate of greater than 100%” (forentrepreneurs)
CFOs believe in the great potential of cloud computing
- “74% of Tech Chief Financial Officers (CFOs) say cloud computing will have the most measurable impact on their business in 2017” (Forbes)
Public cloud seems to be favored over private cloud
- “When compared to last year, the private cloud adoption saw a drop of 5% – from 77% to 72%” (Forbes)
- “The worldwide public cloud services market is projected to grow 18 percent in 2017” (Gartner)
On-premises private clouds are becoming increasingly important
- “62.3% of total private cloud spending will go to on-premises private clouds in 2017.” (Enterprisersproject)
Amazon Web Services dominate the public cloud computing market
- “Amazon cloud is 10 times larger than its next 14 competitors combined” (Gartner)
- “Amazon is in a league of their own with their global cloud infrastructure services market share of 31% – more than three times their nearest competitor Microsoft at 9%.” (Business Insider)
One in two businesses believe that the cloud can help differentiate themselves from their competitors
- “56 % of companies consider cloud computing as a strategic differentiator” (RIS News)
Cloud computing can significantly help reduce total cost of ownership
- “The average reduction of total cost of ownership (TCO) among cloud adopters across four key industries will be of 40%” (Enterprisersproject).
- “By 2018, at least half IT spending will be cloud-based, reaching 60% of all IT infrastructure, and 60–70% of all Software, Services, and Technology Spending by 2020.” (Forbes)
Enterprises constantly use the cloud
- “The typical enterprise uses six cloud computing services” (Forbes)