Cloud Monitoring Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Cloud Monitoring Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Cloud Monitoring Market is expected to grow at a CAGR of 22.66% over the forecast period. Customers do not entirely rely on cloud services with their workloads. Therefore, vendors are developing tools to monitor the companies' on-premise and cloud environments. For instance, Oracle designed a cloud service with great machine-learning-based instruments and facilities explicitly tuned to monitor and manage infrastructure and applications. It works virtually on any cloud and on-premises environment. It supports traditional technology stacks, including Microsoft and Oracle, and popular cloud vendors like Google, Amazon, and Microsoft.

Key Highlights

• End-user industries are incorporating cloud for scale and agility. However, gaining a clear view of performance in cloud environments can be challenging. To intelligently manage complex, ever-changing applications and infrastructure, a monitoring solution is needed that's as dynamic as the cloud.
• Moreover, the growing adoption of cloud technology across industries such as BFSI, IT, retail, and various others is boosting the growth of the cloud monitoring market. It is a significant part of an overall cloud management strategy, enabling IT administrators to review the operational status of cloud-based resources.
• The growing deployment of SaaS offerings such as customer relationship management, human capital management, enterprise resource management, and other financial applications forms a favorable environment for adopting cloud monitoring, especially in large organizations.
• Apart from this, it also provides a holistic view of cloud metrics, customer flow, log data, and more. However, costs associated with the services and limited visibility are challenging for the cloud monitoring market.
• The COVID-19 pandemic has thrown organizations into disarray. The increased usage of conferencing and collaboration services by employees working from home has been putting a strain on back-end support services and growing traffic on networks that connect users to these services. Only providers with a robust and ample architecture that can maintain a consistent client experience can handle the growing demand.
• Cloud technologies, which provide data storage and computing resources maintained by external service providers, are increasingly recognized for their potential to improve healthcare organizations' safety, quality, and efficiency. However, cloud adoption has been uneven across healthcare organizations due to worries that the technology might conflict with established quality assurance and data integrity, security, and service reliability procedures. During the COVID-19 pandemic, cloud technologies were deployed in healthcare settings to enable rapid deployment of apps in individual organizations and the integration of data analytics across organizations.

Key Market TrendsGrowing Demand from BFSI Sector to Augment the Market Growth

• A shift toward modernization and digitization is occurring within the financial services industry, with institutions of all sizes shedding their caution about the cloud and embracing its capabilities. Deploying the cloud allows financial institutions to experience shorter development cycles for new products, supporting a faster and more efficient response to the needs of banking customers.
• Banks and financial institutions have witnessed several data breaches. The cost of recovering these breaches is very high for banks and economic sectors, which emphasize cloud monitoring, thereby driving market growth.
• Further, As many organizations face challenges with legacy ERP solutions that have been in place for over a decade, cloud offerings are gaining traction over the existing on-premise systems as they enable greater business agility and scalability. Several financial service organizations are migrating to cloud solutions to deliver innovation, customization, and security, with the sole purpose of gaining a competitive edge.
• Software as a service (SaaS) is an on-demand application that manages and improves a system's performance. Increased acceptance of SaaS solutions such as human capital management (HCM), customer relationship management (CRM), enterprise resource management (ERM), and other financial applications, especially in large enterprises, presents a favorable atmosphere for cloud monitoring adoption. Unlike traditional banking application software, SaaS does not require people to keep the system working smoothly.
• Deploying cloud services allows financial institutions to experience a shorter development cycle for new products and support a faster and more efficient response to the needs of banking customers.
• With greater customer expectations and the growing technological capabilities and regulatory requirements, banking institutions must adopt a proactive approach to their workflow. This has resulted in incorporating cloud-based platforms.

Asia-Pacific Expected to Witness the Fastest Growth

• The Asia-Pacific cloud monitoring market is expected to grow significantly during the forecast period, primarily driven by the growing adoption of cloud technology in the end-user sectors, especially in China and India. In India, the interest in the cloud is driven by the increasing need for business innovation and agility, the ability to scale fast in a competitive market, and the government's efforts toward the Digital India initiative.
• Since the launch of AWS in Asia-Pacific, over 120,000 customers, including Tata Motors, Future Group, and Shoppers' Stop, have adopted the AWS Cloud for a broad range of applications. Hence, the growth in cloud adoption in the region is expected to provide significant opportunities for the cloud monitoring market.
• As the Digital India initiative continues to take shape, it is very clear about a "cloud first" approach. The initiative aims to move legacy and on-premise systems to a cloud-based model or integrate with it, and the cloud platform would host the delivery of e-services to citizens. Hence, several initiatives are taken by various organizations to boost the adoption of cloud-based platforms.
• Microsoft opened two new Microsoft Azure regions in Australia, designed to deliver cloud services specifically to address the requirements of the Australian and New Zealand governments and critical national infrastructure, including banks, utilities, transport, and telecoms.
• According to the China Academy of Information and Communications Technology, China's cloud computing business increased by 56.6% the previous year to CNY 209.1 billion (USD 32.9 billion). The market is expected to expand quickly in the next three years, surpassing CNY 400 billion by 2023.

Competitive Landscape

The cloud monitoring market is consolidated because top industry players own most of the market share. However, small and medium are upgrading their cloud services, but top players have gained a significant proportion of consumers and also investing hugely in more developments and innovation. Some key players include AWS, CA Technologies(Broadcom Company), Oracle Corporation, Microsoft Corporation, IBM Corporation, IDERA Inc., and LogicMonitor Inc.

• March 2022 - Zoom established itself as a prominent technology during the pandemic and has had a beneficial impact. The pandemic has increased people's interest in video conferencing solutions. The video communication corporation earned USD 4.10 billion in sales for the fiscal year that concluded on March 31, 2022, a massive 325% increase over the previous year. All of this was due to imposed lockdowns and the transition from an office to a work-from-home setup.

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• The market estimate (ME) sheet in Excel format
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