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VMware COO Predicts Cloud Computing Momentum Will Continue, Edge Cloud to Take Centre Stage
December 8, 2020 Blog


In a recent LinkedIn post, Sanjay Poonen, Chief Operating Officer at VMware, shared his top 10 predictions for 2021 and talked about some of the trends he saw that the new year will bring us, “as we continue the unstoppable forces of digital transformation in almost every industry in the economy, and as software continues to take over the world.”

His first prediction, regarding probably one of the most important trends in the business landscape overall, is that the momentum of cloud adoption for many organisations and industries will just continue to pick up over the coming year.

Sanjay, citing Gartner, mentioned that Cloud Infrastructure (IaaS and PaaS) will continue to be the biggest area of growth, predicted to rise to USD120 billion in 2021, while the Cloud Apps market (SaaS) will be about the same size, rising to around USD117 billion.

In the same report by Gartner, the worldwide end-user spending on public cloud services, in general, is forecast to grow to 18.4% in 2021 to total USD304.9 billion, up from USD257.5 billion in 2020. The global enterprise is even significantly shifting to the cloud, making up 14.2% of the total IT spending market by 2024.

As for ASEAN, IDC predicts that cloud will remain a top technology investment priority for organisations in the region. The analyst firm projects a year-on-year growth rate of 22.7% for IaaS, 37.5% for PaaS and 21.5% for SaaS in 2021 for the ASEAN region.

This just shows that organisations are now accelerating their digital transformation through the cloud, especially during the pandemic, where companies needed the ability to use on-demand, scalable cloud models to achieve cost efficiency and business continuity.

In addition, there is also one area of the cloud that has shown its importance to the business landscape during the pandemic – the edge cloud. This is because as people were confined to their homes, they have increased their spending to e-commerce and online retail, with the absence of physical shops.

Edge cloud, responsible for the cloud ecosystem for industries such as entertainment, retail, and manufacturing, enables organisations to have a unified software-defined model from the data centre and the cloud, across the WAN and to the edge of the network.

In his prediction, Sanjay also cited that while the edge market is small, with an estimated growth of around USD6 billion this year, it will increase to USD25 billion by 2025. “It is probably going to be one of the most exciting areas of innovations for logistics, retail, CPG, energy, manufacturing and related industries with distributed operations,” he added.

Such industries need their cloud closer to the edge where transactions happen, since they require more efficient computing power and lower latency. Edge cloud solves this, delivering enhanced user experience.

VMware is helping organisations embrace this cloud-centric future and modernise their IT posture for 2021 and beyond. With its “future-ready” cloud solutions, VMware can unlock the power of cloud to rapidly migrate apps, scale resources up or down, deliver resources for new remote work initiatives, and drive app modernisation strategies.

VMware Cloud Foundation, VMware’s hybrid cloud platform for managing VMs and orchestrating containers, enables consistent and secure infrastructure and operations across private and public cloud. With VMware Cloud Foundation, you can increase enterprise agility and flexibility with the hybrid cloud that delivers it all.

With enterprises transforming how they architect and utilise their networks and infrastructure, with a shift towards a cloud-delivered, software-defined model, VMware offers network edge solutions to help with their edge cloud needs.

This includes VMware NSX SD-WAN by VeloCloud, which enables enterprises to support application growth, network agility and simplified branch implementations while delivering optimised access to cloud services, private data centres and enterprise applications simultaneously over both ordinary broadband Internet and private links – delivering performance across the WAN and to the edge.

To learn more about how VMware’s future-ready cloud solutions help you drive stability and growth, click here.