[Research Report] The cloud migration services market is expected to grow from US$ 11.23 billion in 2022 to US$ 58.24 billion by 2030; it is estimated to grow at a CAGR of 22.8% from 2022 to 2030.
Analyst Perspective:
The cloud migration services market has witnessed significant growth in recent years, driven by several factors such as flexibility, agility, lower costs, and security. The cloud migration services know the steps of research and innovation with the complete lifecycle of cloud-ready solutions to offer accelerated Time-to-market and enhanced operational processes. The rise in global cloud expenditures drives the CAGR for the cloud migration services market. As more and more businesses adopt cloud computing solutions to run their operations, they need to migrate their existing on-premises IT infrastructure and applications to the cloud. This cloud migration process requires specialized skills and expertise, which many businesses may not possess in-house. This is where cloud migration service providers come in. These companies offer services, including planning, assessment, design, and implementation of cloud migration projects. They help businesses migrate their data, applications, and infrastructure to the cloud securely and efficiently. The rising global cloud expenditures contribute to this growth by creating a large cloud migration services market. As businesses continue to invest in cloud solutions, the need for cloud migration services will only increase, leading to further growth.
Additionally, the complexity of cloud migration projects and the need for specialized expertise create a barrier to entry for new players, giving established cloud migration service providers a competitive advantage. For instance, in September 2020, with a US$ 3 billion investment, Accenture Solutions Pvt Ltd. developed Cloud First to accelerate the adoption of cloud computing. Also, in August 2021, Google Cloud invested US$ 1-2 billion in a German program. The Investment anticipates increasing Germany's cloud infrastructure by constructing additional data centers in Berlin.
However, the end-users are looking for advanced solutions that ensure the best possible utilization of resources in the era of varied and intricate computing environments. This seek-out adds new degrees of managerial complexity, which increases the demand for flexibility and automation. Organizations can have the right degrees of agility and automation through cloud migration services. Companies must be more adaptable and nimbler than their current virtualization tactic, which may be readily completed by moving the current workload to the cloud. The primary driver for cloud migration is anticipated to be business agility on the cloud. Also, the cloud migration services market additionally provides end users access to various automation features, such as recovery auto-scaling, automated backup, and auto-provisioning, that help them use the operational and economic benefits of cloud computing. Numerous advantages of using automation technologies include managing multiple cloud deployments, enabling automatic recovery in situations of emergency, and enhancing business continuity and disaster recovery. Cloud migration services provide business agility across various environments, enhancing enterprise service levels.
Cloud Migration Services Market Overview:
Cloud migration is transporting a company’s IT resources, databases, services, digital assets, and applications wholly or partially into the cloud. Several companies desiring to move on from out-of-date and increasingly inefficient legacy infrastructures, such as potentially unreliable firewall appliances or aging servers, or to leave hardware or software solutions that are no longer working at optimal capacity, are now shifting to the cloud to see the benefits of cloud computing. This is why so many businesses are, at the very least, making a partial migration to the cloud. Additionally, cloud migration is vital for completing updated and real-time performance and efficiency. As such, the process needs careful analysis, planning and execution to confirm the cloud solution's compatibility with business requirements. Therefore, the increase in the need for cloud migration services will grow the cloud migration services market.
Moreover, enhanced opportunities for innovation and the cloud can have a colossal impact on businesses undertaking the cloud migration process. This includes a drop in the faster time to delivery and total cost of ownership (TCO). With access to the cloud comes agility and flexibility, which are imperative to meet changing consumer and market demands. In recent months, companies have been migrating their services and data to the cloud as they adapt to become elastic digital workplaces to deal with increased online demand and remote working. For businesses that have already begun the move to cloud computing, they're accelerating a cloud transformation that will lead the way forward in the years to come.
Cloud Migration Services provides several advantages such as increased flexibility and agility, ability to innovate with speed, simplification of reduction in costs, increasing resource demands, better managing of increased customer expectations, shift to everything as-a-services, delivering immediate business results, simplified IT, improved performance, better consumption management, cloud scalability. Owing to all these advantages, the cloud migration services market growth is boosted.
Strategic Insights
Cloud Migration Services Market Driver:
Increasing Digitalization, growing automation and rising need to reduce capital expenditure are triggering the growth of the cloud migration services market.
During the dispersed of COVID-19, companies switched their way of working to "intact" (no contact), and many are hurrying for digital transition to protect differentiated value for their organizations. New digital technologies that involve a lot of infrastructure, such as artificial intelligence (AI), application operations, automation, chatbots or contact centers, are presented in the process. However, one thing needs to be prepared before introducing those new technologies. A new infrastructure cloud is required to use the features of those new technologies. Recently, organizations have put a high value on storing big data and getting insight to protect business competitiveness. But in the existing infrastructure environment, it is not simple to store big data, and it isn’t easy to analyze data through machine learning/deep learning or AI. The cloud makes those possible, and it’s why companies are interested in the cloud and trying to introduce it quickly. Therefore, the increasing Digitalization is fueling the cloud migration services market.
Moreover, moving to the cloud has become easier with cloud migration automation. Numerous tools are now available to do the heavy lifting allied with cloud migration, helping businesses lower costs, increase their migration speed, and reduce risks. Organizations leveraging automation tools can increase the success rate of their cloud migration projects and realize faster time-to-value. Cloud migration automation can help enterprises move to the cloud by reducing migration time, lowering migration costs, supporting data analytics, and minimizing business disruption.
With automation, organizations can reduce some of the more recurring tasks to move to the cloud, cut these costs, and move to the cloud faster. Cloud migration automation can deliver reliable, repeated results across multiple environments to increase and simplify the migration procedure. It frees up staff time to focus on cloud migration's higher-value, more strategic aspects and reduces human error.
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Cloud Migration Services Market Segmental Analysis:
Based on product type, the cloud migration services market is segmented into service type, deployment, and end user. The services type segment is further segmented into automation and integration, disaster recovery, managed services, training and consulting, support and maintenance, and others. The deployment is further segmented into public cloud, private cloud, and hybrid cloud, and the end user segment is further sub-segmented into BFSI, it and telecom, government, retail, manufacturing, healthcare, and others.
Cloud Migration Services Market Regional Analysis:
North America uses Cloud Migration Services the most due to the adoption of cutting-edge software, modern technical knowledge, and considerable organization. This area has determined a readiness to execute this technology across all economic sectors. The IT industry has already occupied this strategy. The growing healthcare industry in North America benefits the cloud migration services market. After finding the benefits of cloud migration, SMEs in these regions modify their cloud solutions to grow productivity and foster commercial success. The need for cloud migration services in North America is also increasing because of investments in digital solutions like digital banking, sophisticated manufacturing systems, connected solutions, and healthcare. The benefits of moving data and applications to the cloud, with other things, encourage many organizations to use cloud migration services. This is helping the cloud migration services market grow. Organizations in the North American region are also maintaining strategic alliances and expanding their businesses to speed up cloud migration services. Businesses may streamline their Cloud Migration Services with automation, which will help the cloud migration services market grow.
Cloud Migration Services Market Key Player Analysis:
The cloud migration services market analysis consists of players such as Accenture, Amazon Web Services, Inc., Cisco Systems, Inc., Cognizant, DXC technology company, Google LLC, IBM, Microsoft, Rackspace Technology, VMware Inc, among the players in the cloud migration services market. Accenture and Amazon Web Services, Inc. are the top two players owing to the diversified product portfolio offered.
Cloud Migration Services Market Recent Developments:
Inorganic and organic strategies such as mergers and acquisitions are highly accepted by companies in the cloud migration services market. A few recent key cloud migration services market developments are listed below:
- In June 2022, Leading worldwide cloud provider Ovhcloud collaborated with Lenet, an established end-to-end IT services provider for American businesses. The collaboration will enable cost-effective, flexible, and secure cloud migration for companies of all sizes.
- In January 2020, An Indonesian telecom company called Smartfren collaborated with Cisco System Inc. to develop a multi-cloud architecture_ The project will spearhead the adoption of managed services, cloud computing, and other cloud services integrated data center architecture for digital services.