Cloud computing comprises an on-demand distribution of database, applications, storage, computing power and supplementary IT essentials through internet with a pay-as-you-go model of pricing. It caters an enterprise by offering access to databases, servers, storage and an array of application services over the Internet. A cloud services providers such as Amazon Web Services own network-connected hardware essential for application services.
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The global market size forcloud computing marketwas USD 11.66 billion in 2018 and is anticipated to rise up during the forecast period. The factor that led to higher adoption of cloud computing is, big data offer customer insights and help retailers offer personalized offering to customers. Cloud services are able to merge the in-store data with the digital data to offer the best solutions to their customers. This enables retailers to have an enterprise-wide supply chain insight or visibility. The technology help retailers own supply chain systems which are capable of effectively handling their business without expedited deliveries, stock-outs or high inventories. In addition to that, cloud helps in capturing digitized documents from suppliers, logistics providers, carriers, brokers, etc. and real-time status of consignments. For instance, Cargill used blockchain technology to trace each and every Thanksgiving turkeys. The technology involved to implement this was deployed on a cloud-based system.
The factors that may hinder the growth of cloud computing in retail and consumer goods is, presence of different tools to create applications for each community cloud application platform. This makes app development difficult that span across numerous cloud providers.
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Geographically, the asia-pacific region has earned the highest share in cloud computing market followed by North America and European region. In asia-pacific, factors driving the adoption of cloud computing is rising purchasing power of customers coupled with manufacturers striving on satisfying customer expectations which enable existing customer retention and new customer acquisition.
The key players in global cloud computing in retail and consumer goods are Amazon Web Services, Microsoft, Google Cloud Platform, IBM, Artha Systems LLC, Cloud4Wi, Commercetools, NextOrbit, PlumSlice Labs, retailcloud, Springboard Retail and SPS Commerce. These leading players are part of mergers and acquisitions to remain on competitive advantage of market. For instance, in April 2019, Nestle the food manufacturer had partnered Microsoft with an aim of collaboration towards digitalization of its food business in China region. Similarly, in April 2019, Unilever declared that they are using Google Cloud to create 1 billion one-to-one relationships with its consumers. At present, Unilever is working with Google Cloud, using utilizing a wide range of its AI and analytics tools, mixed with extensive social media and consumer data, to target its consumers when running campaigns.
Segment Overview of Global Cloud Computing in Retail & Consumer Goods Market
Regional Overview, 2015-2025 (USD Billion)
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