Market Trends of Hybrid Cloud Industry
Banking, Finance, Services, and Insurance (BFSI) Sector to Hold Major Share in the Market
- The banking sector has been using the hybrid cloud model, through which critical banking processes and applications are migrated to private clouds for better security. Moreover, non-critical applications are moving to the public cloud for agility and cost efficiency.
- As the majority of the banks' IT spending is primarily on maintaining their legacy technologies, along with managing and maintaining disparate systems, Consequently, they have had to invest in a Hybrid Cloud solution that consists of an onpremise mix of private and public cloud services with the aim of achieving higher scalability and integration across their various systems.
- Hybrid cloud is also increasingly being adopted to tackle issues in this sector. These issues include the increased number of transactions without cards, the digitization of several bank branches, the shift to remote working systems, the need for online documentation, etc.
- Modifying the hybrid cloud for banking leads to cost reduction, increases efficiency, and enables banks to manage their customers better, resulting in the growth of hybrid cloud in the BFSI industry.
- The growth of hybrid cloud in the BFSI industry worldwide is driven by a shift in consumers' preference toward hybrid cloud, an increase in digital disruptions, and technological advances like the integration of edge computing, (IoT), and artificial intelligence. However, the COVID-19 pandemic led to a sharp rise in the hybrid cloud in the BFSI market globally, owing to increased demand for increased computing power across banks and the overall fintech sector.
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North America to Hold Significant Market Share
- A significant share of the hybrid cloud market is expected to be held in North America. A number of companies in the region are going beyond public clouds. They're entering a new era in which IT services are designed to combine government, industry and traditional infrastructure. In order to help them improve their business and provide services to their customers, these organisations have implemented a hybrid cloud strategy.
- North America pioneered the bring-your-own-device (BYOD) culture, resulting in widespread incorporation. As a result, organisations have begun to move away from traditional cloud models and are moving towards hybrids in order to ensure the safety of sensitive business information by using Private Cloud while giving employees more access to applications based on Public Cloud solutions which is required for certain applications that require field access. This trend was observed to benefit productivity, and it is expected to continue and grow during the forecast period. The BYOD trend is also becoming more and more common in Canada's companies. The growth of BYOD in the country is projected to increase, and it is estimated that over the forecast period this will have a positive effect on the Hybrid Cloud Market as tablets and smartphones become more frequently used for access to business critical information.
- Additionally, the COVID-19 pandemic accelerated cloud usage for US companies in every industry. Many US enterprises prioritizing cloud adoption in their organization noted the increased importance of cloud due to the pandemic.
- Moreover, to increase their consumer base and better meet demands across various applications, significant companies are also merging with other businesses and investing in new projects. For instance, in May 2023, IBM has announced Hybrid Cloud Mesh, a Software as a Service offering that allows enterprises to take management of their hybrid multicloud infrastructure. In order to help modern enterprises operate their infrastructure across hybrid multicloud and heterogeneous environments, IBM Hybrid Cloud Mesh is built on "applicationcentric connectivity" that automates the process, management or observability of application traffic between public and private clouds.
- Overall, the demand for flexibility, data security, cost reduction, digital transformation, enhanced analytics, and industry-specific requirements are some of the significant factors that are driving the hybrid cloud market in North America. Due to these reasons, businesses are being compelled to use hybrid cloud solutions in order to strike a balance between agility, control, and innovation.
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