Since the last few months, many businesses and lives have been upended by the COVID-19 pandemic on an unusual scale. Although there is one sector which has got success in emerging stronger is the cloud computing industry. From beyond the customarily expected surges in Face book to twice the number of subscribers of Netflix is the proof that internet and ecosystem around it has become very valued than ever.
Now let’s have a look in knowing about the impacts of COVID-19 on cloud industry and responses of providers to the sudden upsurge in interest and demand for it.
The whole world has made a makeshift towards the digital solutions for retaining productivity as physical interaction is no longer a mode of communication due to the outbreak of a pandemic. Even the developed countries like the US and Europe has now made their employees on the non-fundamental business to work remotely for an undefined time. Schools and colleges are also going towards online platforms for facilitating distance education.
Due to the outcome of these factors, it will not be unanticipated to witness various collaborative solutions such as Zoom and Slack that have shown record-breaking progressive figures. As per the blog post of Microsoft from March, its collaborative product witnessed a monthly spike of 775 per cent in usage in Italy immediately after the orders of stay at home were issued throughout the country. A smaller bump of 300 per cent was also seen by the virtual desktop offerings of the company.
Administering the requirements of millions
A colossal boost has also been witnessed by the entertainment industry from the under lockdown or self quarantining individuals. The shutting down of cinema halls has also caused people to choose some alternatives like Amazon Prime Video and Netflix. The downloads of Netflix app saw the surge of almost 60 per cent in Italy, 9 per cent in the United States, and 30 per cent in Spain.
Other media forms like video games have also gained popularity. As per the American Telecom wizard Verizon, the usage of video games during peak hours has seen an increment of nearly 75 per cent in a week after the imposition of quarantine.
According to the reports of Nielsen’s Super Data Research, from March 2019 year-over-year, an increase of around 11 per cent was also seen in the spending of the consumers on the digital purchasing games. In April, the live streaming platform of Amazon named Twitch touched the new heights of a record 17 million users in one game.
Due to these enhancements in the entertainment industry, many ISPs have not been able to cope up with the situation globally. Even the Indian and EU regulators have to petition the streaming giants like YouTube, Netflix, and Amazon for reducing their streams’ quality temporarily for high definition content.
The expansion of e-commerce
Another industry that is scaling at the time of crisis is the e-commerce industry as millions of users are now using the online platform like Amazon for medical supplies, daily essentials, and groceries. As per the survey done by Nielson, the trends are indicating that now more and more people will shift towards online shopping as they would like to keep themselves away from others voluntarily for the predictable future.
Expansion opportunities for Cloud Service Providers
It must be noted here that the giants like Microsoft, Amazon, and Google derived the maximum percentage of their growth and revenue not only from cloud services but also from the software and e-commerce services. So it is unlikely that COVID-19 will impact their bottom line to much significant level.
Now it is clear that many companies have realized the value and benefits o cloud computing despite beyond the need for remote work caused by pandemic this year. So, the investments in cloud computing and digital transformation by many companies will most likely take place in the coming year. Even a small slice of this inaugural market can help many smaller companies to have their foothold in cloud computing, which is presently being dominated by the preferences of Google and Alibaba. The main concern for the cloud service providers is still searching and approaching the businesses who are on the brink of digital transformation.
Oddup has come up as an aid for these companies by giving them access to trustworthy and clean intelligence on startup ecosystem globally. Along with its flagship platform on real-time data streaming, Oddup also offers a variety of equity solutions like Benchmark Valuation and Oddup Score representing the barometers of valuation and health, respectively.
The Bottom Line
Since the end of pandemic seems elusive, many individuals and businesses are trying to find ways of working via technology, keeping in mind the essential practices of social distancing and quarantine. The advancement of technology is key that has prevented the world from coming to a standstill. While some decades back, the cloud might be frivolous spending, but today it is a necessity which is undeniable.