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The cloud migration services market has experienced enormous changes. The demand for powerful, scalable and resource-efficient solutions is skyrocketing in this digital age. Underlying this market are several crosscurrents and trends, some obvious while others subtler. In particular, businesses themselves are recognizing the benefits of moving their operations into the cloud. The obstinate pursuit of cost optimization and operational efficiency is one main force driving the Cloud Migration Services market. The PAY-AS-YOU GO model of cloud service providers is very attractive to organizations in a wide variety of industries, who see migration into the realm as an excellent way to reduce their outlays on capital investment and physical infrastructure.
This has resulted in increased market share for vendors providing migration services, as enterprises desire smooth passages to the cloud while avoiding disruption of ongoing operations. In addition, the increasingly intense digital transformation is becoming an important effort that promotes the growth of Cloud Migration Services. With business conditions changing constantly, companies must race to adopt cloud technologies if they want to stay ahead of the pack. Businesses want all of digital innovation's benefits without any of its inconveniences. Another important factor influencing the dynamics of this market is the security paradigm.
As cyber threats become more frequent and complex, enterprises are asking a higher price for secure cloud migration solutions. Vendors providing strong security features such as data encryption, identity and access management (IAM), or compliance with regulatory standards will enjoy lion's share of the market. As it is not only a reaction to possible threats, the focus on security can also be considered as part of proactive efforts by cloud providers to increase business confidence in actively migrating their applications. These have become important factors shaping the market dynamics as interoperability and vendor lock-in concerns emerge. How to unify diverse applications and systems is an important concern facing organizations migrating into the cloud.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Service Type, Application, Organization Size, Deployment Model, Vertical, and Region |
Cloud Migration Services Market Highlights:
Cloud Migration Services Market Overview
The Cloud Migration Services Market is projected to grow from USD 17.33 billion in 2024 to USD 50.56 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.31% during the forecast period (2024 - 2032). Additionally, the market size for Enterprise Portal was valued at USD 14.72 billion in 2023.
Rise in global cloud expenditures and growing use of BYOD are the key market drivers enhancing the market growth.
Figure 1: Cloud Migration Services Market Size, 2023 - 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Cloud Migration Services Market Trends
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Rise in global cloud expenditures is driving the market growth
Market CAGR for cloud migration services is being driven by the rise in global cloud expenditures. As more and more businesses are adopting cloud computing solutions to run their operations, they need to migrate their existing on-premises IT infrastructure and applications to the cloud. This process of cloud migration requires specialized skills and expertise, which many businesses may not possess in-house. This is where cloud migration service providers come in. These companies offer a range of services, including planning, assessment, design, and implementation of cloud migration projects. They help businesses migrate their data, applications, and infrastructure to the cloud securely and efficiently. The rising global cloud expenditures are contributing to this growth by creating a large market for cloud migration services. As businesses continue to invest in cloud solutions, the need for cloud migration services will only increase, leading to further growth of the market. Additionally, the complexity of cloud migration projects and the need for specialized expertise create a barrier to entry for new players, giving established cloud migration service providers a competitive advantage. For instance, in Sep. 2020, With a USD 3 billion investment, Accenture Solutions Pvt Ltd. developed Cloud First to accelerate the adoption of cloud computing. Also, in Aug. 2021, Google Cloud made a USD 1.2 billion investment in a German program. By constructing additional data centers in Berlin, the investment anticipates to increase Germany's cloud infrastructure.
However, the end-users are looking for advanced solutions that ensure the best possible utilization of resources in the era of varied and intricate computing environments. This search adds new degrees of managerial complexity, which raises the demand for automation and flexibility. Organizations can achieve the right degrees of automation and agility through the use of cloud migration services. Companies feel they must be more adaptable and nimbler than their current virtualization strategy, which may be readily accomplished by moving the current workload to the cloud. The primary driver for cloud migration is anticipated to be business agility on the cloud. Also, the cloud migration services additionally provide end users access to a variety of automation features, such as automated backup and recovery, auto-scaling, and auto-provisioning, that help them make use of the operational and economic benefits of cloud computing. Numerous advantages of using automation technologies include managing multiple cloud deployments, enabling automatic recovery in situations of emergency, and enhancing business continuity and disaster recovery. Cloud migration services provide business agility across various cloud environments, enhancing enterprise service levels.
Moreover, the market for cloud migration services offers potential to MSPs. The management of virtual machines, cloud services, storage services, migration services, and applications operating on public cloud infrastructure such AWS, Microsoft Azure, IBM Bluemix, and Google Cloud are merely a few of the numerous responsibilities that MSPs are capable of managing. For SMEs without the necessary technological know-how or resources, moving to the cloud can be an intimidating endeavor. When this happens, MSPs may help organizations in overcoming obstacles such a constrained workforce, bandwidth, and the deployment of complicated programs. Additionally, the MSPs can make suggestions for selecting the best program that is consistent with the organization's aims, which will enhance flexibility, reduce investment costs, and enhance efficiency.
Cloud Migration Services Market Segment Insights
Cloud Migration Services Service Type Insights
The Cloud Migration Services Market segmentation, based on service type includes Automation and Integration, Disaster Recovery, Application Hosting and Monitoring, DevOps, Training and Consulting, Support and Maintenance, Managed Services. The automation and integration is anticipated to hold the largest market size, owing to the largescale adoption of cloud migration services globally. Enterprises may efficiently streamline their cloud migration processes with the help of automation. Costs, manual involvement, processing time, and failure risk are all decreased with automation. It encourages increased business agility and workload transfer for fast downtime recovery.
Cloud Migration Services Application Insights
The Cloud Migration Services Market segmentation, based on Application, includes Project Management, Infrastructure Management, Security and Compliance Management, Others. The biggest rate of growth is anticipated in the security and compliance management. Protecting data from misuse, satisfying compliance requirements, gaining access to control, providing strong data encryption, and improving integration are a few of the main factors influencing widespread adoption of the security and compliance application.
Cloud Migration Services Organization Size Insights
The Cloud Migration Services Market segmentation, based on Organization Size, includes Large Enterprises, Small and Medium-sized Enterprises (SMEs). With a 65.5% revenue share, the large enterprises sector held the largest revenue share and is anticipated to hold that position throughout the forecast period. Large businesses are gaining a huge competitive advantage by shifting to cloud-based solutions. fostering industry-wide investments in cloud computing.
Figure 1: Cloud Migration Services Market, by Organization Size, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Cloud Migration Services Deployment Model Insights
The Cloud Migration Services Market segmentation, based on deployment model, includes public cloud, private cloud, and hybrid cloud. The hybrid cloud deployment model is the dominating segment in the cloud migration services market owing to the many organizations are prefer the public cloud deployment as public can also access the information which are provided by the companies or organizations. On the other hand, individual consumers are prefer the private cloud deployment as the protect the data on the server. Thus, such factors are supported the growth of hybrid cloud deployment model in 2022 and also expected to continue its dominance during the forecast period.
Cloud Migration Services Vertical Insights
The Cloud Migration Services Market segmentation, based on vertical, includes BFSI, healthcare and life sciences, telecommunications and ITES, government and public sector, manufacturing, consumer goods and retail media and entertainment, and others (travel & hospitality and education). The BFSI segment is the dominating sub segment which are dominating in 2022 due to the high demand of cloud migration services as it offers the smooth data transfer without any lagging or server issue. Also, it fast the process of the operations which improve the companies efficiency and effectiveness. Therefore, the factors supported the growth of BFSI segment.
Cloud Migration Services Regional Insights
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American cloud migration services market dominated the global market, due to a number of reasons, such as the availability and existence of technology resources and innovative IT infrastructure facilities. SADA Inc. announced client expansion, talent recruiting, and leadership expansion in the Canadian market in June 2022. This acceleration and ongoing worldwide growth are in response to the demand for SADA's services and Google Cloud capabilities in Canada and show SADA's commitment to integrating Google Cloud to serve its customers globally.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: CLOUD MIGRATION SERVICES MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe cloud migration services market accounts for the second-largest market share due to the rising adoption of cloud computing in various sectors and cohesive government initiative for the development of cloud migration services. Further, the German cloud migration services market held the largest market share, and the UK cloud migration services market was the fastest growing market in the European region
The Asia-Pacific Cloud Migration Services Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due an increase in investments made by companies looking to migrate to the cloud, including Megazone Cloud Corp., Aokumo Inc., Macquarie Telecom Group, and Alibaba Cloud. For instance, Alibaba.com said in September 2022 that it will invest USD 1 billion over the following three fiscal years to support its cloud computing clients. In an effort to expand its customer base outside of China, the company has constructed new data centers in Singapore and Thailand. Moreover, China’s cloud migration services market held the largest market share, and the Indian cloud migration services market was the fastest growing market in the Asia-Pacific region.
Cloud Migration Services Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the cloud migration services market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, cloud migration services industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global cloud migration services industry to benefit clients and increase the market sector. In recent years, the cloud migration services industry has offered some of the most significant advantages. Major players in the cloud migration services market, including IBM Corporation (U.S.)., Amazon Web Services Inc. (U.S.), HCL Technologies (India) and others, are attempting to increase market demand by investing in research and development operations.
Amazon Web Services (AWS) is a subsidiary of Amazon.com, Inc., a global technology company headquartered in Seattle, Washington. AWS was founded in 2006 with the goal of providing a cloud computing platform that businesses and individuals could use to access powerful computing resources, storage, and databases over the internet. AWS is the world's most comprehensive and widely adopted cloud platform, offering over 200 fully featured services from data centers located in regions around the world. These services include computing, storage, databases, analytics, machine learning, security, networking, mobile development, Internet of Things (IoT), and more.
For instance, in May 2021, Amazon Web Services (AWS) stated that the Union Bank of the Philippines was going to move its information technology (IT) systems from on-premises to the cloud by 2022. Through the provision of financial services to remote regions of the country, the move aims to boost financial inclusion in the Philippines, accelerate the bank's digital transformation, and enhance clients' digital banking experiences.
IBM (International Business Machines Corporation) is technology and consulting company headquartered in New York. IBM was founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and was renamed "International Business Machines" in 1924. IBM is one of the world's largest information technology companies, offering a wide range of products and services that include hardware, software, cloud computing, artificial intelligence, blockchain, cybersecurity, and consulting services. IBM has a strong legacy in mainframe computers, but has also developed many other technological innovations throughout its history, including the magnetic stripe card, the relational database, and the Watson AI platform.
For instance, in Sept. 2021, In order to support clients in the region as they deploy hybrid cloud strategies, IBM built a new IBM Cloud Multizone Area (MZR) in Spain and announced a new partnership with CaixaBank, one of Europe's biggest banks. By updating its essential applications and increasing efficiency through increased availability and resiliency, CaixaBank will be able to reaffirm its innovative strategy.
Key Companies in the cloud migration services market include
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Microsoft Corporation (U.S.)
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Tech Mahindra (India)
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Dell (U.S.)
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IBM Corporation (U.S.)
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HCL Technologies (India)
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Accenture PLC (Republic of Ireland)
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Wipro Ltd. (India)
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NTT DATA, Inc. (Japan)
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Vmware, Inc. (U.S.)
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Amazon Web Services Inc. (U.S.)
Cloud Migration Services Industry Developments
- In November 2023, Infosys entered a $3-year strategic alliance with AWS to expand their reach to customers in Europe, the Middle East and North Africa. Among the goals of this alliance under the model, Infosys Cobalt, is to combine the specialization of cloud migration and modernization synergies with AWS's domain knowledge. In this approach, the focus is on generative AI, data analytics, an industry-specific transformational use case approach, and co-created working tools for faster and compliant automation.
- In September 2023, Microsoft and Oracle partnered up and launched Oracle Database on Azure, whereby Microsoft Azure clients are provided with direct access to Oracle services through Oracle Cloud Infrastructure.
- In September 2023: Red Hat and Oracle declared the broadening of their partnership, intending to provide more flexibility for customers regarding application deployment on Oracle Cloud Infrastructure. In continuation of this expanded partnership, Red Hat OpenShift, hybrid cloud application platform for designing, developing and managing cloud-based workloads based on Kubernetes, is expected to be available and certified for use on OCI.
- In August 2023: The collaboration of Cisco and Nutanix saw the consolidation of the cloud migration strategy with a unified offering using Intersight which is managed infrastructure as software by Cisco. This alliance facilitates a variety of deployment methods and provides the assurance of working with a variety of server and cloud options. The capabilities that are offered by the Nutanix Cloud Platform also provide a consistent operating paradigm, easier management for applications and extend out the scales for workloads that are moved. The migration with the partnership’s advantages incorporates easier movement to the cloud, reduced expenditure, better supervision, tighter security, simplicity and increased speed.
- February 2024: Data Intensity and Matilda Cloud are expected to significantly enhance Data Intensity's cloud migration capabilities. Data Intensity is an established player in providing Oracle managed cloud services. The cloud migration services offered by Data Intensive are based on a comprehensive analysis of its customer's entire IT environment including its applications, databases, networks as well as operating systems and virtualization. As cloud migration is often characterized by indecisiveness and lengthy processes, leading TDMs will now have an opportunity to make such migrations with the help of Matilda Cloud and Data Intensity in a streamlined fashion.
- April 2024: Tata Consultancy Services (TCS) has announced the signing of a memorandum of understanding with Amazon Web Services (AWS), which is one of the leaders in providing IT services and solutions to companies. The primary goal of this collaboration is to fast-track TCS’s client's migration to the cloud on a swift and large scale. This collaboration is expected to benefit TCS as their clients are now able to be transformed offline in entirety through the use of AWS.
Cloud Migration Services Market Segmentation
Cloud Migration Services Service Type Outlook
- Automation and Integration
- Disaster Recovery
- Application Hosting and Monitoring
- DevOps
- Training and Consulting
- Support and Maintenance
- Managed Services
Cloud Migration Services Application Outlook
- Project Management
- Infrastructure Management
- Security and Compliance Management
- Others
Cloud Migration Services Organization Size Outlook
- Large Enterprises
- Small and Medium-sized Enterprises (SMEs)
Cloud Migration Services Deployment Model Outlook
- Public Cloud
- Private Cloud
- Hybrid Cloud
Cloud Migration Services Vertical Model Outlook
- BFSI
- Healthcare and Life Sciences
- Telecommunications and ITES
- Government and Public Sector
- Manufacturing
- Consumer Goods and Retail
- Media and Entertainment
- Others
Cloud Migration Services Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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