Cloud Technology Technology

How COVID-19 is Impacting Cloud Computing

The COVID-19 pandemic has impacted lives and businesses on an unprecedented scale. 

Many businesses have severely reduced their operations or on the verge of a complete breakdown.

According to the survey by Main Street America, around 7.5 million small businesses are at risk of closing permanently over the next few months if the coronavirus pandemic persists.

However, if one sector has leveraged the crisis, it would be the cloud computing industry. 

As per market estimates, the COVID-19 impact on the global cloud market size is expected to propel from USD 233 billion in 2019 to USD 295 billion by 2021, at a CAGR of 12.5%.

The demand for cloud computing is increasing among organizations and individuals. It is much fueled by increasing dependency on web-based apps, virtual desktops, endpoint encryption, conferencing software, VPN, and other cloud-based tools.

Some recent cloud findings include:

  • Microsoft 365 has seen a massive 775% increase in the adoption of its cloud services
  • Microsoft Teams now has garnered more than 44 million daily users, up by 12 million within a week
  • Zoom Cloud Meetings has become the most downloaded app with daily users up to more than 300% from before pandemic
  • Cloud-based entertainment platforms such as Netflix, Amazon Prime and Hotstar have also gained significant traction

Let’s take a look at the factors that are rapidly escalating the growth of cloud services.

1. Remote Working

With physical interaction no longer an acceptable form of communication in light of the coronavirus pandemic, work from home has emerged as a necessity for retaining business continuity. 

Some companies like Twitter have even announced that employees can work remotely for an indefinite time frame.

Even educational institutes are leveraging various digital platforms to facilitate virtual teaching and learning.

As a result, there is an exponential surge in the usage of cloud-based collaborative solutions such as Slack, Zoom and Microsoft Teams.

2. A rise in the Entertainment Industry

Lockdown and stay at home have caused people to flock to video streaming services such as Netflix and Amazon Prime Video. 

Netflix has witnessed a sudden surge in its app downloads by at least 60% in Italy, 30% in Spain and 9% in the US.

Even the video gaming industry has witnessed an enormous boost due to the pandemic. According to Verizon, video game usage during peak hours has increased by 75% since the lockdown. 

Meanwhile, Amazon’s video game live streaming platform Twitch has reached a new record of 1.7 million concurrent viewers in a single game.  

3. A boom in E-commerce

According to the Technomic, 52% of consumers are avoiding crowds and 32% are leaving their house less often because of coronavirus.

Since most people are trying to implement social distancing, more people are relying on e-commerce services to purchase everyday supplies.

For instance, e-commerce sales in Albertsons Cos. Inc. for the eight weeks ending April 25  increased by 243% against last year.  In March, the year-over-year rise in online sales was 109% and 374% in April.

4. Healthcare Industry

The healthcare industry is at the forefront of adopting cloud computing technologies to maintain, manage, store, and secure large chunks of patient information.

Scalability, flexibility, speed, and interoperability are some of the beneficial features that led healthcare providers to rely on cloud computing to cater to many cases. 

Streamlined data control, cost savings, ease of maintenance, data backup, and recovery are further contributing to the rise of cloud adoption in healthcare.

Moreover, healthcare facilities are using cloud-based communication and collaboration platforms to meet healthcare needs while keeping patients and critical front-line healthcare workers safe. 

As per market estimates, the global healthcare cloud computing market is estimated to reach USD 51.9 billion by 2024 from USD 23.4 in 2019 at a CAGR of 17.2%.

In Conclusion

While the coronavirus pandemic’s prevalence remains uncertain, the necessity of cloud computing for business continuity is undeniable. Businesses must leverage cloud computing to create resilient and disaster-averse systems for the uncertain future ahead.

About the author


Anand Kumar

Anand is a senior content writer at the Veritis Group working on market research, collaterals, whitepapers, technology news &, etc. Reading Books, Blogging, Social media are other work-related interests among various other skill sets.