Every year, we watch analyst predictions closely to determine trends currently in the market—and those that are gaining momentum for the future. It is pretty safe to say we are firming entrenched in the era of the cloud.
Here at Constructech we have been writing about the impact of the cloud on construction for more than 10 years. The story goes a little something like this: The cloud offers the opportunity to move data to an off-site location, often hosted by a technology provider, which means data is more easily accessible remotely and it is often delivered in a SaaS (software-as-a-service) model so a construction company doesn’t need to pay all costs upfront, but rather it can be extended in a subscription-based approach.
Analysts show that they are in fact firmly entrenched in the age of the cloud. Just last week, IDC reported that worldwide spending on public cloud services and infrastructure is forecast to reach $210 billion in 2019—which is a whopping increase of 23.8% from last year. That is huge growth that won’t slow down anytime soon. Looking out five years, IDC says it will grow at a compound annual growth rate of 22.5% in 2022. SaaS is one of the largest categories of cloud computing, with IaaS (infrastructure-as-a-service) coming in as the second largest category, and PaaS (platform-as-a-service) coming in close behind.
We also see technology providers continuing to make big investments into the cloud as well. For instance, Computer Guidance Corp., recently announced an investment of $1.3 million in cloud infrastructure to support its growing managed hosting services offering.
This is now its third cloud hosting data center investment of this size in the last five years—demonstrating that the construction industry is embracing the move to the cloud. Computer Guidance already has two Tier III Service Organization Control compliant cloud data centers—one located in Phoenix, Ariz., and another located in Atlanta, Ga. The newest data center will provide for a 50% growth in cloud infrastructure capacity to support the company’s growth trajectory.
While the construction industry is deep in the age of the cloud, perhaps another emerging trend to keep an eye on is edge computing—sometimes called fog computing. Here the processing power is pushed back to a local centralized end device or computer to manage a particular service for event. This allows for each computer to manage its own data processing.
Edge computing is seeing some growth in industries such as manufacturing and healthcare. Grand View Research projects the edge computing market to reach $3.24 billion by 2025, which is pretty significant growth, but much smaller than the billions that will be spent on the cloud. Still, it is a trend to keep an eye on.
What are your thoughts? Has your company embraced the cloud? What are the benefits? What are the hurdles to adoption? What do you think will come next?
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