Cloud Computing: Inc Impact of COVID-19 - UK - October 2020

OVERVIEW
Key issues covered in this Report
COVID-19: Market context
Economic and other assumptions
Products covered in this Report
EXECUTIVE SUMMARY
Impact of COVID-19 on cloud computing
Figure 1: Short-, medium- and long-term impact of COVID-19 on cloud computing, 5th November 2020
Figure 2: Changes in planned expenditure on cloud computing due to COVID-19, 2020
The market
Market size and forecast
Figure 3: Market size for cloud computing, 2015-2025 (prepared on 5th November 2020)
Segmentation by revenue
Figure 4: Revenue segmentation of UK cloud computing market, 2016-20 (£ billion)
Segmentation by end use sector
Figure 5: Segmentation of SaaS usage, by sector, 2019
Cost remains the primary purchase driver
Figure 6: Leading cloud initiatives, 2020
Companies and brands
A concentrated sector
Figure 7: Global market shares of cloud computing, Q2 2019 and Q2 2020
COVID-19 AND CLOUD COMPUTING
Impact on the market
Strong growth continues
A pricing model for uncertain times
Pay-as-you-go revenues to be impacted by unemployment
Impact on end users
Market protection by broad application
Remote working – a market boost
Growth in cloud expenditure
Impact on companies
A strong Q2 followed by a strong Q3
Internationalisation continuing
ISSUES AND INSIGHTS
Why COVID-19 is stimulating greater growth
Why SMEs have the most to gain from the cloud
THE MARKET – KEY TAKEAWAYS
COVID-19 is expanding the cloud opportunity
The largest market in Europe is bucking GDP developments
Multicloud strategies gaining ground
Cost remains the major driving force for users
MARKET SIZE AND FORECAST
Growth in COVID-19 related remote working encouraging growth
Figure 8: Short-, medium- and long-term impact of COVID-19 on cloud computing, 5th November 2020
The UK is the largest cloud market in Europe
Figure 9: Market size for cloud computing, 2015-2025 (prepared on 5th November 2020)
Market drivers and assumptions
Figure 10: Key drivers affecting Mintel’s market forecast, 2015-2025 (prepared on 5th November 2020)
Forecast methodology
MARKET SEGMENTATION
A worldwide perspective on the public cloud
Figure 11: Forecast worldwide public cloud service market, 2019-22
Figure 12: Segmentation of forecast worldwide public cloud service market, 2019-22 (US$ million)
Segmentation by revenue
Figure 13: Revenue segmentation of UK cloud computing market, 2016-20 (£ billion)
Segmentation by end use sector
Figure 14: Segmentation of SaaS usage, by sector, 2019
MARKET TRENDS
COVID-19 accelerating cloud usage
Figure 15: Changes in planned expenditure on cloud computing due to COVID-19, 2020
Figure 16: Growth in cloud based income of major cloud computing suppliers, April-September, 2020 (US$ million)
Cloud development
Public clouds
Private clouds
Hybrid clouds
Multiclouds
Cost remains the primary driver
Figure 17: Leading cloud initiatives, 2020 (% of respondents)
MARKET DRIVERS
Digitisation
The key to productivity
Figure 18: Labour productivity in the UK compared with other major economies, 2017-19
The COVID-19 impact
Figure 19: UK labour productivity, output per hour and per worker, Q1 2017-Q2 2020
COVID-19 changing remote working practices
Figure 20: Number of people mainly working from home, 2015-19
Internet access
Figure 21: Worldwide internet usage, by region, 2000-20 (millions and %)
Figure 22: Proportion of UK businesses with internet access in the UK, by size of company, 2014-18 (%)
Figure 23: Residential fixed line broadband coverage across the UK and Nations, March 2020
5G rolling out
The Internet of Things
COMPANIES AND BRANDS – KEY TAKEAWAYS
An industry led by technology giants
A truly international sector
Will the multicloud trend impact market shares?
The margin issue
INDUSTRY STRUCTURE
Stability
Figure 24: Changes in the structure of the data processing, hosting and related activities industry, 2016-20
Figure 25: Employment structure of the data processing, hosting and related activities industry, 2020 (number of companies)
Figure 26: Global market shares of cloud computing, Q2 2019 and Q2 2020
Figure 27: Global leading providers of cloud services, by type and niche, 2020
Figure 28: Enterprise adoption of public cloud, 2020
COMPETITIVE STRATEGIES
Different participation in the layers
Backing different clouds
Differentiating the offer
International activities
COMPANY PROFILES
Amazon Web Services
Activity
Performance
Figure 29: Quarterly revenues of Amazon Web Services, 2015-20
Strategy
Microsoft Intelligent Cloud/Azure
Activity
Performance
Figure 29: Turnover development of Microsoft’s Intelligent Cloud, 2016-20
Strategy
Google Cloud
Activity
Performance
Figure 30: Quarterly revenues of Google Cloud, 2018-2020
Strategy
Alibaba Cloud Intelligence
Activity
Performance
Figure 31: Quarterly cloud revenues of Alibaba, 2016-2020
Strategy
IBM
Activity
Performance
Figure 32: Quarterly cloud and cognitive software revenues of IBM, 2019-20
Strategy
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations