Market Overview:
The Global Cloud Migration Service market includes companies offering consulting and planning services related to infrastructure transformation, applications migration, workload migration, and data migration to public, private, and hybrid clouds.
Market key trends:
The increasing adoption of cloud computing by enterprises is driving the growth of the global cloud migration services market. Cloud migration allows enterprises to move from on-premises infrastructures and legacy applications to cloud platforms enabling benefits like improved agility, scalability, reduced costs and better focus on core business. Furthermore, growing awareness about the operational benefits of cloud migration such as increased collaboration, data availability, disaster recovery and cost optimization is also fueling the demand for cloud migration services. For example, according to Flexera report, 93% of enterprises are using public cloud like AWS, Azure and GCP for various workloads in 2022 compared to 85% in 2020 owing to swift cloud adoption during pandemic.
Porter’s Analysis
Threat of new entrants: High capital requirements and the need for access to wide distribution network and skilled workforce pose significant entry barriers for new players in the global cloud migration service market.
Bargaining power of buyers: Buyers have high bargaining power due to availability of alternatives in the market. However, switching costs associated with transition act as a barrier.
Bargaining power of suppliers: Key suppliers have moderate bargaining power due to availability of alternatives and reliance of buyers on proprietary products.
Threat of new substitutes: Threat from substitutes is moderate as digital services continue to evolve providing alternative solutions.
Competitive rivalry: High due to presence of several global and regional players competing on price and quality of service.
SWOT Analysis
Strength: Vast expertise in migrating legacy infrastructure and robust portfolio of migration services. Growing popularity of hybrid cloud and multi-cloud strategies.
Weakness: High costs associated with migrating complex legacy infrastructure. Lack of in-house talent and technical expertise among some end-users.
Opportunity: Rising cloud adoption across industries to modernize IT infrastructure and cut costs. Increasing spend on digital transformation initiatives post-pandemic.
Threats: Data security and compliance risks associated with cloud platforms. Continued preference for on-premises deployments in certain sectors.
The global Cloud Migration Service Market Demand is estimated to be valued at US$ 6.84 Bn in 2023 and is expected to exhibit a CAGR of 20% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Key Takeaways
The global Cloud Migration Service Market is expected to witness high growth, exhibiting CAGR of 20% over the forecast period, due to increasing demand from enterprises to streamline and optimize their infrastructure and applications through cloud adoption. The market size for cloud migration service in 2023 is estimated at US$ 6.84 Bn.
Regionally, North America dominates the global cloud migration service market currently and is expected to continue its dominance over the forecast period. This is attributed to strong presence of major technology players and increasing investments towards digitization across sectors in the US and Canada. Asia Pacific exhibits the fastest growth in the market owing to growing technology uptake and rapid digitalization in developing economies such as China, India.
Key players operating in the global Cloud Migration Service market are IBM, Microsoft, Amazon Web Services, Google, Cisco, NTT Data, VMware, DXC, Rackspace, Informatica, Accenture, WSM, Zerto, Virtustream, RiverMeadow, OpenStack, CloudEndure, Cloudreach, Apps Associates, Rigs IT. The market is highly fragmented with major players focusing on acquisitions and partnerships to expand their service capabilities and geographical footprint.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
