Global Distributed Cloud Market Size, Share & Industry Trends Analysis Report By Application, By Service (Data Storage, Data Security, Networking, Autonomy, and Others), By Organization Size, By End User, By Regional Outlook and Forecast, 2022 - 2028

Analysis of Market Size & Trends

The Global Distributed Cloud Market size is expected to reach $13.4 billion by 2028, rising at a market growth of 20.3% CAGR during the forecast period.

A distributed cloud is an infrastructure that makes use of numerous clouds to satisfy performance, compliance, or edge computing needs while being centralized and governed by the public cloud provider. All cloud services are managed from a single control plane that manages the variations and irregularities in such a hybrid, multi-cloud system, even though numerous locations and geographies are involved.

This service distribution enables an organization to satisfy very particular performance and response time standards, legal or governance compliance needs, or other demands requiring the cloud platform to be situated outside of the usual availability zones of the cloud provider. The expansion of edge computing and the internet of things (IoT) has been a key factor in the implementation of distributed clouds.

Bringing cloud resources to the edge location itself can significantly improve performance for artificial intelligence (AI) applications that move huge amounts of data from edge locations to the cloud. These applications demand cloud services be as close to edge locations as possible. In a distributed cloud, services are situated, or "distributed," to certain places to cut down on latency, and these services benefit from a single, standardized control point throughout public and private cloud environments.

Companies can achieve significant performance gains by minimizing latency and reducing the total risk of outages or control plane inefficiencies. This will also bring significant performance increases. A distributed cloud distributes the complete computing stack, not just an application, to the areas where it is required, whether they be public cloud providers, internal systems, or external colocation facilities.

COVID-19 Impact Analysis

The distributed cloud sector has benefited from the COVID-19 pandemic. Cloud management of virtual work is a natural match due to the dispersed nature of cloud services. The current pandemic has been made possible by digital productivity and collaboration tools. For business enterprises, cloud services now guarantee more trustworthy and secure distant operations. Distributed cloud technologies are now poised to revolutionize the post-COVID world as the effects of the worldwide pandemic continue to alter the nature of work.

Market Growth Factors

The Internet Of Things Is Growing, And Enhancing User Experiences

Real-time data processing is made possible for enterprises by distributed cloud computing technologies. Businesses can improve user experiences by concentrating on fresh, creative approaches supported by accurate, timely, and consistent data. Distributed cloud computing technologies provides companies the ability to tailor their offerings to forge enduring bonds with their clients. Businesses may improve their responsiveness to client preferences and provide seamless services with the help of this more sophisticated version of cloud services.

Distributed Cloud Architecture Based On 5g Network Development

Edge computing and cloud computing models are used to provide distributed cloud architecture, in which the edge locations serve as a network connecting physical sites, centralized data centers, base stations, remote places, and on-premises. Numerous micro data centers maintained by service providers and organizations will be necessary due to the expansion of distributed cloud sites. Strong and affordable network connectivity will be needed, able to handle and deliver network slicing given by the 5G network, which is the fifth generation of mobile networks.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The below illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches.

Market Restraining Factors

Distributed Cloud Architectures Require Hefty Capital Expenditures

It will be difficult for IT businesses to integrate distributed cloud architecture internationally given the increase in cloud-based applications and computing. Due to the distinctive design of each service provider, such as Google, AWS, and Azure, as well as a specific requirement for an organization's private cloud deployments and edge computing architectures, designing and executing distributed cloud architecture is difficult.

Service Outlook

Based on the Service, the Distributed Cloud Market is segmented into Data Security, Data Storage, Networking, Autonomy, and Other. The data security segment witnessed a significant revenue share in the distributed cloud market in 2021. Due to the increased transparency across distributed cloud settings, distributed cloud architecture lays out each component's dependence on the distributed cloud. Because cloud computing is scalable, it is essential to scale programming while taking security considerations into account.

Application Outlook

On the basis of Application, the Distributed Cloud Market is divided into Edge Computing, Content Delivery, Internet of Things, and Other. The internet of things segment procured the largest revenue share in the distributed cloud market in 2021. A physical item that includes sensors, computing power, software, and other technologies is considered an Internet of things object (IoT) if it links to other systems and devices via the Internet or other communication networks and exchanges data with them.

Organization Size Outlook

By Organization Size, the Distributed Cloud Market is classified into Large Enterprises and Small & Medium Size Enterprises. The large enterprises segment garnered the highest revenue share in the distributed cloud market in 2021. To stay ahead of the competition, large businesses concentrate on expanding their market presence by implementing cutting-edge technologies. Customers of large companies are spread out geographically.

End User Outlook

Based on the End User, the Distributed Cloud Market is bifurcated into BFSI, IT & Telecom, Government, Healthcare & Life Sciences, Retail & Consumer Goods, Media & Entertainment, Energy & Utilities, Manufacturing, and Other. The IT & Telecom segment witnessed a significant revenue share in the distributed cloud market in 2021. It is because many people are interested in the future of technology now that 5G mobile service is becoming more widely available.

Distributed Cloud Market Report Coverage

Report Attribute	Details
Market size value in 2021	USD 3.7 Billion
Market size forecast in 2028	USD 13.4 Billion
Base Year	2021
Historical Period	2018 to 2020
Forecast Period	2022 to 2028
Revenue Growth Rate	CAGR of 20.3% from 2022 to 2028
Number of Pages	336
Number of Tables	524
Report coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Companies Strategic Developments, Company Profiling
Segments covered	Service, Application, Organization Size, End User, Region
Country scope	US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers	The Internet Of Things Is Growing, And Enhancing User Experiences Distributed Cloud Architecture Based On 5g Network Development
Restraints	Distributed Cloud Architectures Require Hefty Capital Expenditures

Regional Outlook

Region-wise, the Distributed Cloud Market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment registered a promising revenue share in the distributed cloud market in 2021. It is because many international companies are paying close attention to the Asia Pacific region. The region is made up of nations that have a diverse system of governments, startups, SMEs, and big multinational corporations that offer beneficial ICT solutions.

Free Valuable Insights: Global Distributed Cloud Market size to reach USD 13.4 Billion by 2028

KBV Cardinal Matrix - Distributed Cloud Market Competition Analysis

The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Google LLC and Microsoft Corporation are the forerunners in the Distributed Cloud Market. Companies such as Amazon Web Services, Inc. (Amazon.com, Inc.), Alibaba Group Holding Limited, IBM Corporation are some of the key innovators in Distributed Cloud Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Oracle Corporation, Google LLC, Amazon Web Services, Inc. (Amazon.com, Inc.), Microsoft Corporation, Teradata Corporation, Alibaba Group Holding Limited, VMware, Inc., F5 Networks, Inc., and Pluribus Networks (Arista Networks).

Strategies deployed in Distributed Cloud Market

» Partnerships, Collaborations and Agreements:

• Jul-2022: Amazon Web Services joined hands with Zscaler, a cloud security company. Together the companies aimed to deliver consumers a suitable solution to reduce and streamline cloud security operations while supporting communities advance their safety architecture from ineffective heritage models to a advance Zero Trust approach developed for the cloud.
• Jul-2022: Google cloud came into a partnership with Deutsche Telekom, a German telecommunications business. Through this partnership, companies aimed to determine a joint roadmap for the telecommunications industry by obtaining the power of the cloud closer to mobile and connected devices at the edge of Deutsche Telekom's network. Additionally, by developing more safe, dependable, and scalable cloud-native networks, companies such as Deutsche Telekom are nicely positioned to deliver elastic, high-bandwidth, high-capacity, and low-latency connectivity and value-added benefits to their consumers.
• Jun-2022: F5 teamed up with SoftBank, a Japanese multinational conglomerate holding company. This collaboration aimed to offer improved Multi-access Edge Computing (MEC) services in Japan and international markets. Under this collaboration, F5 solutions, together with SoftBank would allow enterprise customers to transform more of their business-critical applications to various edge locations and enjoy the advantages of decreased latency, better security, and flexible application deployment.
• Jun-2022: F5 formed a partnership with Telstra that spans 20 years. This partnership aimed to help F5 security and application delivery services to deliver key components of the telco’s network infrastructure solutions to increase resilience, reliability, speed, and security, and help its customers realize such advantages.
• May-2022: Pluribus Networks came into partnership with Tech Data, a TD SYNNEX Company. This partnership aimed to leverage Pluribus Networks’ unique vision of Unified Cloud Networking and their Unified Cloud Fabric solution to boost the digital and network transformation journey for clients all over the Asia Pacific & Japan region.
• Apr-2022: VMware came into collaboration with Deloitte. This collaboration aimed to develop the Deloitte VMware Distributed Cloud (DVDC) practice to assist customers to transform their operations and the industries they serve by more efficiently deploying and using distributed cloud architectures.
• Feb-2022: Google Cloud came into a partnership with Elisa, a Finnish telecommunications and digital services provider. This partnership aimed to boost Elisa's cloud transformation journey and enable the companies to work together on joint innovations in various areas.
• Feb-2022: Microsoft came into a partnership with Intapp, a leading provider of cloud-based software. Through this partnership, Intapp would provide connected business and deal management solutions on a Microsoft Azure-based industry cloud with in-depth integrations between Microsoft technologies, such as Microsoft 365, and Intapp applications. Additionally, the partnership would boost the adoption of cloud technologies by private legal, investment banking, accounting, capital, and consulting firms.
• Jan-2022: Amazon Web Services teamed up with TD Synnex , an American IT distribution business . Through this collaboration the companies aimed to support channel associates grow under a new distribution agreement that surrounds North America, Latin America and the Caribbean. Moreover, AWS would ramp up investments to assist small and medium-sized and public sector members expand their portfolio by utilizing a bigger range of AWS cloud services.
• Jul-2021: Microsoft Azure came into a partnership with Logz.io, a leading open-source observability platform. Through this partnership, Logz.io would propel innovation within the engineering society, allowing teams to seamlessly cast Logz.io observability devices and rapidly build and monitor their products while delivering consumers with centralized portal management for support and billing for their Azure Deployments
• May-2020: IBM joined hands with NVIDIA, an American multinational technology. Through this collaboration, customers can utilize the abilities of IBM, and NVIDIA, to provide analytics models and applications to where the data is developed and requires to be actioned in retail stores, factories, transportation, warehouses, energy grids, smart cities, and healthcare institutions at the edge.

» Product Launches and Product Expansions:

• Aug-2022: VMware unveiled VMware vSphere 8 and VMware vSAN 8, major new releases of VMware’s compute and storage solutions. These solutions would assist customers to operate a wide range of workloads in the environments of their choice.
• Aug-2022: Teradata introduced Teradata ClearScape, a cloud-native database and analytics support. Through this product, enterprises would get the benefits of emerging analytics, machine learning, and AI development workloads in the cloud. In this single platform, the integration of cloud-native database and analytics would offer more potential to boost reuse, enable ModelOps, and expedite data science workflows.
• Jul-2022: Amazon Web Services introduced AWS Cloud WAN, a new managed broad area network. The new service connects on-premises data centers, branch offices, colocation facilities, and cloud resources to facilitate operating a global network. Additionally, by utilizing a central management dashboard created into AWS Cloud WAN, consumers can determine their network configuration, view the health of their global network, and automate routine design and safety tasks.
• Jun-2022: Oracle Cloud introduced a new distributed cloud service. The new services would help the consumers in satisfying data residency, strict latency, and data sovereignty requirements, which are crucial to various IT modernization efforts.
• Jun-2022: Google Cloud expanded its prevailing Google Distributed Cloud by obtaining Anthos on-prem into the fold. Google’s Anthos on-prem is an on-premises variant of Google Cloud Anthos, a hybrid cloud application development platform that operates atop the Kubernetes container orchestration software. Moreover, the Antos designed for building applications that can operate unchanged on any cloud or data center server.
• Jun-2022: Google introduced a new Distributed Cloud Edge service, offering up a new iteration aimed at private network setups that demands specific performance and service-level agreement (SLA) standards. The latest version obtains in vendor partners that can deliver enterprise-specific services running on top of the Google Distributed Cloud (GDC) Edge system. Additionally, These services contain the capability to tap into licensed spectrum assets either maintained by a carrier or available through outside licensing standards.
• May-2022: Google launched Google Distributed Cloud Edge, including Google Distributed Cloud Edge Appliances. This product is a fully-managed hardware and software stack, which incorporates an open cloud-native execution environment, operational infrastructure, and fleet management.
• Mar-2022: Oracle Cloud Infrastructure (OCI) expanded its portfolio by introducing 11 new compute, networking, and storage services and capabilities. These additions would allow users to operate their workloads faster and more safely at reduced costs.
• Mar-2022: Pluribus launched Unified Cloud Networking Vision, featuring the Pluribus Unified Cloud Fabric. This product aimed to enable a unified networking model over distributed clouds and across switches and server-based data processing units (DPUs) with zero-trust distributed security, developed with automation and pervasive visibility.
• Feb-2022: F5 expanded its application security and delivery portfolio with F5 Distributed Cloud Services. These services offer security, multi-cloud networking, and edge-based computing solutions on a unified software-as-a-service (SaaS) platform.
• Dec-2021: Amazon Web Services introduced AWS Cloud WAN, a managed wide area network service. The AWS Cloud WAN would supplies a central dashboard that communities can leverage to network on-premises branch offices, data centers and AWS cloud resources to streamline and unify the monitoring, building, and management of a global network. Moreover, the service automates network administration and safety using simple, centrally configured network policies that IT departments can apply extensively.
• Oct-2021: Google introduced Google Distributed Cloud, a complete portfolio of hardware and software solutions to expand Google infrastructure to the edge and into customer data while Anthos running on Google-managed hardware at the customer or edge location provides a services platform on which to run applications securely and remotely.
• Jul-2021: Microsoft introduced Windows 365, a cloud service that presents a new way to experience Windows 10 or Windows 11 to companies of all extents. The new Windows 365 takes the operating system to the Microsoft cloud, streaming the complete Windows experience data, apps, and settings to corporate or personal devices. Additionally, window 365 is safe by built and design with the principles of Zero Trust, Windows 365 reserves and stores information in the cloud, not on the device, delivering a secure, productive experience for employees from interns and contractors to software developers and industrial designers.
• Mar-2021: IBM unveiled IBM Cloud Satellite, hybrid cloud services are now commonly public in any conditions on any cloud, on-premises or at the edge. The new IBM Cloud Satellite brings a reserved, unifying layer of cloud services for clients across conditions, regardless of where their data resides. Moreover, this is important to support address crucial data privacy and data authority conditions.
• Feb-2021: Microsoft India unveiled Azure Stack HCI, a new hyper-converged infrastructure (HCI) solution, The new Azure stack incorporates the scalability, flexibility, and price-performance benefits of hyper-converged infrastructure with native Azure hybrid abilities. Moreover, Azure Stack HCI strives to certify businesses by allowing them to build and run cloud-native applications with seamless entrance to cloud services on-premises with an current processes, tools, and skillsets.
• Oct-2020: Alibaba Cloud introduced a series of new product and feature upgrades that incorporate a family of cloud-native database products ranging from OLTP, OLAP, NoSQL, tools and utility, and a self-driving database platform. This series would offer a solution portfolio under the database ecosystem for the whole cycle of data processing, storage, management, and analytics.

» Mergers & Acquisition:

• Apr-2022: Google Cloud took over MobiledgeX, a marketplace of edge computing resources & services. Under this acquisition, Google would release the startup's edge computing software code into the open-source community.
• Feb-2022: IBM took over Sentaca, a provider of telco consulting services and solutions. This acquisition aimed to improve its hybrid cloud abilities with Sentaca is totally aligned with that strategy and with IBM’s hybrid cloud strategy. Moreover, Sentaca’s cloud-native application testing, development, and future network abilities would be a great addition to  been focusing on in the last couple of years  
• Sep-2021: F5 Networks acquired Threat Stack, a cloud security and workload protection company. This acquisition aimed to expand F5's cloud security portfolio by improving visibility across the application infrastructure. With this acquisition, F5 focused on combining its application and API protection products with Threat Stack’s cloud-native application protection capabilities to boost observability and actionable security insights.

» Geographical Expansions:

• Mar-2022: Alibaba Cloud unveiled its cloud computer in Singapore, with the addition of both the pocket-sized Wuying cloud computer and Elastic Desktop Service (EDS). Through this surge in remote workforces in Asia, the Alibaba Cloud would help enterprises to access heavy computer-powered productivity applications easier, like computer-aided design (CAD) software.

Scope of the Study

Market Segments Covered in the Report:

By Application

• Internet of Things
• Content Delivery
• Edge Computing
• Others

By Service

• Data Storage
• Data Security
• Networking
• Autonomy
• Others

By Organization Size

• Large Enterprises
• Small & Medium-sized Enterprises

By End User

• BFSI
• IT & Telecom
• Healthcare
• Retail & Consumer Goods
• Government
• Manufacturing
• Energy & Utilities
• Media & Entertainment
• Others

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• IBM Corporation
• Oracle Corporation
• Google LLC
• Amazon Web Services, Inc. (Amazon.com, Inc.)
• Microsoft Corporation
• Teradata Corporation
• Alibaba Group Holding Limited
• VMware, Inc.
• F5 Networks, Inc.
• Pluribus Networks (Arista Networks)