2 Not-So-Obvious Ways Covid-19 is Creating Cloud Storage Demand

2 Not-So-Obvious Ways Covid-19 is Creating Cloud Storage Demand


Many have turned to cloud-based services in response to the Covid-19 pandemic. Here are two factors contributing to the newly found surge in demand for data centers and cloud-based storage.

The Covid-19 pandemic has forced a big part of the world to replace in-person communication with online interactions. Stay-at-home orders, telehealth, and a rise in online gaming have all pushed cloud storage demand to an all-time high.

Here’s how Covid-19 is driving behavioral changes that — in turn — fuel the need for data centers and cloud-based solutions.


1. Healthcare providers are increasing telehealth usage


Practicing medicine at a safe distance has become a necessity to reduce the risk of infection during this global health pandemic. Healthcare providers have consequently taken quick action to leverage telehealth, enabling virtual appointments and care. Telehealth now plays an important role in efforts to “flatten the curve.”


The result is a dramatic increase in usage rates over the past few months. Since January, the usage of Amwell, a telehealth app, has increased by 158% in the United States. And another virtual care startup, 98point6, has reported a patient volume increase of 200% during the same time period.


The foundation of telehealth is a reliable cloud service system. Health practitioners are using cloud services to access patient data, conduct virtual appointments, and update electronic health records.


2. Gaming industry is ramping up cloud storage to meet demand


Stay-at-home orders and rising unemployment in the wake of Covid-19 have turned into a boom for the online gaming industry. Shadow, a cloud computing company that hosts cloud-based PC games, has reported a surge in new users, with session rates doubling in the United Kingdom since the start of the pandemic. Microsoft has also seen a significant demand increase — Xbox Live now has 900 million active users, a record for the company.


Covid-19 impact on the cloud-storage and data center electronics market


Microsoft and Facebook are among the major players that are expanding the construction of data centers to better serve global users. Demand is so strong that supply cannot keep up, partly due to production and supply chain disruptions, according to DigiTimes.


The Covid-19 pandemic has had a dramatic impact on the data center and cloud-based services industries in a short amount of time. As more people turn to telehealth and online gaming, cloud storage demand will continue to increase.