Digital Transformation - Moving to Cloud

The global cloud market is experiencing significant growth, with projections indicating that it will reach approximately $1,256.8 billion by 2025. This represents a year-over-year increase of 15.1% from an estimated $1,091.4 billion in 2024. Looking further ahead, the market is expected to expand dramatically, potentially hitting around $5,150.92 billion by 2034, reflecting a compound annual growth rate (CAGR) of 21.20% from 2025 to 2034.

Current Market Size and Future Projections

• 2024 Market Size: $1,091.4 billion

• 2025 Projected Size: $1,256.8 billion

• 2034 Projected Size: $5,150.92 billion

• CAGR (2025-2034): 21.20%

The growth is driven by factors such as increased adoption of multi-cloud and hybrid strategies, the integration of generative AI into cloud services, and rising demand for industry-specific solutions across various sectors like healthcare and finance.

Top Cloud Providers

The leading cloud service providers in the market currently are:

• Amazon Web Services (AWS): Holds the largest market share at 32%.

• Microsoft Azure: Follows with a market share of 23%.

• Google Cloud Platform (GCP): Comes in third with a market share of 10%.

Migrating to Cloud offers numerous benefits but comes with several key challenges. Here are the most common issues organizations face during the migration process:

1. Data Security and Compliance

Ensuring data security and meeting regulatory compliance requirements, such as GDPR or industry-specific standards, is critical. Organizations must secure cloud-hosted data to the same level as on-premises systems and ensure compliance with applicable laws.

2. Legacy System Compatibility

Many legacy systems and applications were not designed for cloud environments, leading to compatibility issues. This may require refactoring or re-architecting applications to function efficiently on Google Cloud.

3. Service Disruption

Maintaining service continuity during migration is challenging. Downtime can impact business operations, especially for critical applications. Proper planning, such as staggered migrations or redundant systems, is essential.

4. Vendor Lock-In

Organizations risk becoming overly reliant on Google Cloud's proprietary tools and services, making it costly and difficult to switch providers in the future.

5. Cost Management

Uncontrolled resource provisioning and lack of budgetary controls can lead to unexpected cost overruns. Organizations need clear policies and monitoring tools to manage expenses effectively.

6. Skill Gaps

Teams may lack the expertise required to manage cloud infrastructure, necessitating training or hiring skilled professionals, which can be time-consuming and expensive.

7. Data Migration Complexity

Migrating large datasets and workloads can be technically complex, especially when dealing with intricate dependencies or outdated systems. Testing and phased migrations are crucial to minimize risks.

8. Change Management

Resistance from employees or stakeholders can slow down the migration process. Clear communication, training, and stakeholder engagement are necessary for a smooth transition.

9. Scalability and Performance Optimization

Ensuring that applications are optimized for scalability and performance in the cloud environment requires careful refactoring and testing.

10. Long-Term Strategy Alignment

Aligning migration efforts with long-term business goals is essential to avoid inefficiencies or misaligned investments in cloud resources.

Addressing these challenges requires thorough planning, stakeholder involvement, phased rollouts, and leveraging Google Cloud's tools for governance, monitoring, and optimization.

Contact us

Whether you have a request, a query, or want to work with us, use the form below to get in touch with our team.