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Cloud-native Tech

Building future-ready applications in the cloud

Overview

Cloud-native technology is an innovative approach that aims to revolutionize the development and deployment of applications in cloud computing environments. It encompasses containers, microservices, DevOps, and continuous integration and continuous delivery (CI/CD), which harness the benefits of the cloud, such as scalability, flexibility, and distributed computing. Organizations are increasingly leveraging cloud-native technologies to modernize their existing applications and build new ones. Cloud-native architecture allows for cost-efficient, scalable, agile, resilient, and secure modern cloud applications.

Cloud-native architectures are experiencing significant growth as organizations embrace scalable and agile software solutions. Many global business organizations have started adopting cloud-native technologies. The future looks promising as large enterprises aspire to have a significant portion of their environment in the cloud by 2025. Cloud-native architecture provides a foundation for innovation and the delivery of scalable cloud applications.

What's driving this industry?

Industry Updates

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Market Sizing

The US cloud-native tech market could reach USD 46.2 billion—61.1 billion by 2027

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Use cases


As advances in cloud-native technologies make it easier to shift businesses to the cloud, it has experienced a significant surge in popularity and adoption across various industries, with information technology, communication services, and financial sectors being particularly prominent. This specifically includes the software subsegment under information technology, the media subsegment under communication, and the financial services subsegment under financials.

The adoption rates of cloud-native monitoring solutions have been relatively high due to the better visibility and insight they provide into infrastructure and cloud environments. In addition, cloud-native storage, cloud-native transformation, and application delivery and deployment solutions demonstrated high adoption, driven by cost and time savings, improved efficiencies, and long-term operational flexibility.

 

We have identified the key cloud-native technology use cases below: 

Market Mapping


Segments within the cloud-native technology industry encompass the necessary solutions from infrastructure to user in cloud-native architecture. The majority of disruptors are concentrated in observability and analysis tools as well as application definition and development. These two segments combined account for over half of the disruptors covered.

Most companies covered are currently in their growth stage, possessing a well-established market presence and significant funding. Among the segments, the application definition and development segment, which encompasses databases, CI/CD tools, and streaming and messaging technologies, had received the highest funding. Following closely behind is the execution environments segment, which includes cloud-native storage and networking solutions.

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The Disruptors


Funding History

Competitive Analysis


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Incumbents


Incumbents shape the cloud-native tech market

Incumbent players have a significant impact on shaping the cloud-native market, offering critical infrastructure, services, tools, and expertise that enable organizations to adopt and thrive in their cloud-native initiatives. These established companies actively contribute to open-source projects, foster innovation, and provide scalable solutions to facilitate the adoption of cloud-native technologies by businesses.

Prominent industry leaders such as Amazon, Google, Microsoft, and IBM have strategically expanded their presence in the cloud-native market through various approaches. They have diversified their range of cloud services, made strategic acquisitions of cloud-native companies, developed managed services tailored for cloud-native environments, established robust partner ecosystems, made substantial investments in R&D, expanded their global data center infrastructure, and actively engaged with developers. These comprehensive efforts have positioned them as key players, driving innovation and establishing their leadership within the cloud-native domain.

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Notable Investors


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