Domestic public cloud market size in 2019
It was tallied at 1.3 trillion won, a 25.2% increase
Security, a key service for cloud providers


The domestic public cloud market size in 2019 was found to have grown by 25% compared to 2018. This trend is expected to accelerate further as companies respond to COVID-19 and prepare for the post-COVID-19 era.

On the 5th, Korea IDC published a 'Domestic Public Cloud Competitive Market Analysis Report' and announced that the domestic public cloud market size in 2019 reached KRW 1.301 trillion, a 25.2% growth year-on-year.

The market appears to have grown significantly as major cloud service providers expand their services to existing customers who have become accustomed to public cloud services. The public cloud market is segmented into the cloud infrastructure (IaaS), cloud platform (PaaS), and cloud software (SaaS) markets.

According to the report, in 2019, as enterprises expanded their adoption of cloud native architectures, their requirements diversified, and businesses expanded their integrated service support areas within their platforms.

Security, which was once considered at the very end of application development, is now recognized as a key service item for businesses as it has become an essential requirement to be considered from the beginning in line with the changing development cycle.

IDC Korea recently predicted that the non-face-to-face culture that has spread due to COVID-19 will act as a driving force for the expansion of the cloud market, further expanding the scope of cloud adoption by companies.

In fact, it was found that sales of SaaS companies that provide cloud-native architecture, which is the core of non-face-to-face technology, work solutions such as cloud-based remote work and video conferencing, and automation solutions have increased.

According to the results of a survey conducted by IDC on 'Changes in Cloud Computing Investment Demand Due to COVID-19', 37.7% of domestic respondents answered that cloud computing investment demand has decreased, but 45.3% answered that it has increased.

This can be interpreted to mean that new technologies are required due to COVID-19, organizational work environments are changing, and companies are giving important consideration to the use of the cloud to prepare for the post-COVID-19 era.

Park Seo-young, a senior researcher in charge of cloud market research at IDC Korea, analyzed, “Domestic public cloud service providers focused on expanding their existing customer base by providing end-to-end services that help companies utilize cloud native architectures, which led to the expansion of the domestic cloud market in 2019.” />
He added, “This phenomenon will serve as an opportunity for market participants to expand their market share as the scope of cloud utilization by companies expands in the coming post-corona era.”

In this cloud market report, IDC Korea stated that considering the long-term cloud adoption journey, businesses are focusing on securing customer experience.

He suggested that in order for companies to successfully integrate cloud into their business, active cooperation between executives and working-level staff is necessary, and that business operators should be able to serve as a bridge through communication with members of the company organization.