Utiliity Interest in Cloud Picks Up Again
- Nov 20, 2022 4:15 pm GMT
Energy companies face a rapidly changing business landscape. In response, they are turning to cloud computing at faster than expected rates because it offers them the ability to streamline business processes.
Utiltiies face a vast array of turbulent business drivers. They are migrating from fossil fuel to renewable energy. They have aging infrastructure that needs to be updated. Customers demand higher levels of service than ever before. To address these issues, they need to retool their business processes and become more agile.
Cloud computing enables them to reach that goal. Unlike with traditional computing systems, cloud vendors take on the bulk of the installation and maintenance work. In addition, energy companie pay a monthly subscription fee rather than make a large upfront investment.
Energy Companies Spend More on Cloud Computing
As a result, worldwide end-user spending on public cloud services is forecast to grow 20.7% and reach $591.8 billion in 2023, up from $490.3 billion in 2022, according to Gartner, Inc. The number is higher than the 18.8% growth expected in 2022.
Why are the numbers increasing? Ironically, items, like inflation and an unstable energy are prodding companies to find ways to increase efficiency, and cloud systems provide that ability. Also, moving operations to the cloud reduces capital expenditures by extending cash outlays over a subscription term.
Infrastructure as a Service (IaaS) represents the fastest growing segment of the cloud market at 29.8%. Business Process Services (BPaaS) at 8.3% is the slowest rising sector.
Energy companies face significant pressure from rapidly changing markets. Rising inflation and an unstable global political environment are pushing them to deploy more cloud applications.
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