In 2020, the global cloud computing market was valued at $371.4 billion, and it is estimated that by 2025 it will rise to a staggering $832.1 billion. Simply put, a workload is about "putting elements together to get data, finding out what something means or developing something," said Judith Hurwitz, president and CEO of Hurwitz & Associates and author of Cloud Computing for Dummies. As a result, more than 40 zettabytes of data will be flowing through cloud servers and networks. Cloud Data Centers Dominate Workload Processing. SMBs run fewer and smaller workloads, so it stands to reason their cloud bills would also be lower. Hybrid cloud - this is when a company uses both a public and a private cloud. Forrester's Infrastructure Cloud Survey 2022 reveals that cloud decision-makers have implemented containerized applications that account for half of the total workloads in their organizations. The five largest hyperscale public cloud providers that disclose segmented revenues saw their combined revenues grow by 31% in 2019 to US$94 billion. As a result, enterprises are rapidly increasing public cloud spend and workload volumes. Visit the cloud economics webpage today. Register in seconds and access exclusive features. Organizations are increasingly utilizing PaaS services from cloud providers. Cloud data centers will process 94 percent of all workloads in 2021. "Share of workloads in the cloud among organizations worldwide as of April 2021." This allowed AWS to evolve at a more leisurely pace and to develop more functionalities. After applying for a job in this country, you can access/update your candidate profile at any time. In recent years, this percentage has continued to increase. A subsidiary of Amazon, AWS currently holds 31 percent of the market, followed by Microsoft Azure at 20 percent and Google Cloud at seven percent. Even a single application could be tied to multiple business processes, affecting vendors, balance sheets, and regulatory compliance, and different stakeholders could have different motives and expectations from the migration. Gartner surveys indicate that when cloud migrations are complete, an average of 30 percent of the digital infrastructure remains on-premises. Moving to the cloud is a critical business initiative for many organizations. Weve seen two years of digital transformation in two months.Microsoft CEO Satya Nadella1. . Traditional, non-cloud-enabled datacenter deployments were next, with 22% penetration . Please do not hesitate to contact me. While that could be true, new research from Synergy . 2023. Profit from the additional features of your individual account. If you are interested in learning more about these terms, we invite you to read our cloud terminologies article, which explains how they function in greater detail. Cloudwards.net may earn a small commission from some purchases made through our site. But I have one question though, in the diagram of part5, how is the data calculated, or measured? Prepandemic, cloud migration was already often complex. Many times, discussions will assume that a workload is only one item . DTTL and each of its member firms are legally separate and independent entities. Fifty-two percent spend $1.2 million or more annually on AWS. When viewed at the total company level, very few systems will be only on-premise, only public cloud, or only private cloud. Criteria for which workloads move to cloud. When we move to cloud providers, the rate of efficiency using servers is 85%. The respondentsglobal cloud decision makers and usersrevealed their experiences with cloud migration, cloud computing, and their insights about the public, private and multi-cloud market. By 2022, projections indicate that this figure will rise to $397.5 billion.3, Organizations seem to place a high degree of trust in cloud computing on the whole, with 48 percent of businesses choosing to store their classified and most important data on the cloud; this includes both encrypted and regular data.10. There is a prevailing notion that while the cloud infrastructure market is growing fast, the vast majority of workloads remain on premises. The survey also posed to 600 medium to large organizations what percentage of infrastructure operations belonged to: On-premises legacy environments; Public cloud workloads; Private or hybrid cloud workloads So with the same energy, we are managing . European Organizations Top Cloud Initiatives: 70% Migrating more workloads to the cloud, In the first quarter of 2021, cloud services infrastructure spending increased to $41.8 billion on a global level. Cloud Computing Trends: Flexera 2022 State of the Cloud Report, Practical Guide for a Successful Cloud Journey, Cloud Migration and Modernization Datasheet. For example, google drive has a 94.4% rate, I just wonder how this number came out. This means that while overall growth is strong, it is not uniform. Statista. In 2020, the global cloud gaming market was worth $470 million. Since the COVID-19 crisis, the cloud computing market has been on a rapid upward trajectory when it comes to cloud adoption, infrastructure, spending and development. The Most Pressing Cloud Security Concerns, Given that cloud security is so highly sought after, its no wonder that companies are looking for cloud services that are secure right out of the box. [2]. DTTL and each of its member firms are legally separate and independent entities. SMBs run fewer and smaller workloads, so it stands to reason their cloud bills would also be lower. Initially, all AI computing took place on general-purpose central processing unit (CPU) chips. A multi-cloud strategy revolves around utilizing multiple cloud service providers such as Google Cloud or AWS. . Some companies saw costs rise by 20% to 50% just from the increase in usage, even without adding in the cost of new applications or data.28 Asorganizations migrate, there is also a cost of duplication, withorganizations paying for both cloud and legacy systems at the same time as well as the cost of synchronizing data between them.29 Going forward, companies should think about cost planning (for instance, to take advantage of reserving instances at a discount), which can reduce expensive fixes due to rushed deployments. A lot of data is currently in the cloud, and by 2025 it will reach 100 zettabytes. Google Cloud Platform, Oracle Cloud Infrastructure and IBM Cloud round out the top five. The two largest hyperscale providers accounted for 78% of all revenues among the top five hyperscale providers in 2019, and the largest chip company accounted for 82% of total data center semiconductor revenue in the same year.17 At least so far, the effect of COVID-19 has not led to increasing concentration; indeed, the leading hyperscale providers market share declined slightly (bytwo to seven percentage points) during the pandemic-related surge in cloud growth. (Flexera, 2020) Source: ITCandor. Thats three times the size of the second largest market, Western Europe, which has 21 percent of the market total. May 23, 2022. SMBs will leverage the agility provided by cloud to quickly deliver at scale on . We also asked survey respondents to name other key performance indicators they . Get the Deloitte Insights app, 2 years of digital transformation in 2 months, IDC expects 2021 to be the year of multi-cloud as global COVID-19 pandemic reaffirms critical need for business agility, Infrastructure and security challenges threaten multi-cloud and edge deployments, new survey from Volterra shows, Public clouds are bright spot as IT outlays slow due to virus, Hyperscale data center count reaches 541 in mid-2020; another 176 in the pipeline, COVID internet phenomena spotlight report, 2020 to be a bumper year for data centre M&Aamid Covid-19as value surpasses 2019 total, Cloud computing market remains strong, but its not immune to COVID-19, Siemens to let staff Work From Anywhere permanently, Global anything-as-a-service market to reach US$ 344.3 billion by 2024, organizations undergoing digital transformation facilitating growth, Hyperscale operator spending on data centers up 11% in 2019 despite only modest capex growth, Hasty rush to cloud hosting during COVID-19 crisis could set stage for cyberpandemic, Unbundling the cloud with the intelligent edge: How edge computing, AI, and advanced connectivity are enabling enterprises to become more responsive to a fast-moving world, Google Cloud jumps into 5G and telco edge computing with a GMEC vision, COVID-19 leads to shocking cloud computing bills, How to calculate the true cost cloud migration, In times like these you learn to love the cloud, Accelerating agility with XaaS: Many companies are using IT as-a-service to steer their way to competitive advantage, Thriving in the era of pervasive AI: Deloittes State of AI in the Enterprise, 3rd edition, How the great COVID-19 reset can help firms build a sustainable future, Building back better: A sustainable, resilient recovery after COVID-19, Cloud computing is not the energy hog that had been feared, Netflixs Cindy Holland says subscribers watch an average of two hours a day, Data bytes: Cloud CapEx, PUE trends, HPC spending, servers on the edge, AI can do great thingsif it does not burn the planet, Arm Cortex-M55 and Ethos-U55 processors: Extending the performance of Arms ML portfolio for endpoint devices, Corporate Responsibility & Sustainability. The three major types of cloud computing are: Infrastructure as a Service (IaaS), Software as a Service (SaaS) and Platform as a Service (PaaS). 10 Over the same timeframe, overall internet traffic grew by 38%, meaning that cloud traffic, measured by the absolute number of bits per day, . We benchmarked our numbers, at least 10 percentage points [of revenue] is what we're saving. Its market value is estimated at more than $90 billion19, a massive increase over its 2019 valuation of approximately $20 billion. This can help optimize infrastructure, increase staff productivity, and enhance business value.30, New opportunities for value.Moving to the cloud is not only allowing organizations to recover but positioning them to thrive postpandemic, increasing resilience and supporting business continuity at first, and then allowing to them to do new things and offer new services. Basically, the only difference is who owns the infrastructure. Going forward, cloud can support benefits including collaboration, automation, scale, innovation, and agility.31 For example, with regard to innovation, two-thirds of respondents in a 2018 Deloitte survey said that cloud fully allowed them access to the newest technologies.32 Another study showed that 93% of companies surveyed used the cloud for some or all of their AI needs, requiring less investment in infrastructure and expertise.33. Longer term, as growth returns to historical rates, it seems likely, based on the history of technology, that market concentration will increase again. 33% TODAY NEXT 12-18 . Azure pricing as of 30 October 2018 (prices subject to change). Instead, the cloud market has been remarkably resilient. ", Vendor market share in cloud infrastructure services market worldwide 2017-2022, Amazon Web Services: quarterly revenue 2014-2022, Public cloud services market size 2017-2023, Revenue of Salesforce.com broken down by cloud service 2015-2022. Get the latest insights in cloud computing trends and cloud migration statistics by downloading the Flexera 2022 State of the Cloud Report. (2021). For their part, cloud users should consider the following factors as they continue to migrate to cloud: The cloud migration strategy. Thirty-seven percent of enterprises said their annual spend exceeded $12 million and 80 percent reported that cloud spend exceeds $1.2 million per year. (May 31, 2021). Survey respondents ranked data warehouse, relational database as a service (DBaaS) and container-as-a-service (CaaS) in the top three. By 2021, 33% of surveyed enterprises were running over 50% of their workloads on the cloud, indicating that this trend will continue to increase over time. According to a March 2020 report, more than 90% of global enterprises will rely on hybrid cloud by 2022.3 Another survey from the same month found that 97% of IT managers planned to distribute workloads across two or more clouds in order to maximize resilience, meet regulatory and compliance requirements, and leverage best-of-breed services from different providers.4. This rapid level of growth and migration . While cloud computing is an integral part of every modern organization (typically taking up a large portion of IT infrastructure spending), personal users also depend on cloud services. As multiple enterprises shifted rapidly to cloud during the pandemic, some saw costs balloon. In next place is Dropbox, the best cloud storage for collaboration, with a still impressive 66.2 percent, followed by OneDrive (39.35 percent) and iCloud (38.89 percent). Revenues for 2020 are likely to be over US$125 billion, increasing tomore than US$160 billion in 2021.7 And although percentage growth was down three points in the first nine months of 2020 compared to all of 2019, it is worth noting that in absolute dollar terms, the total hyperscale market (not just the five largest) grew more in 2020 than in 2019. By 2024, in contrast, more than 1.5 billion devices will have dedicated edge AI chips (called neural processing units, or NPUs) in them by 2023.46 These NPUs, mainly used for inference, will likely reduce the demand for energy over time: They tend to be more efficient than the chips in data centers, and they eliminate the need to send large data files up to the cloud, which consumes more energy. Cloud migration isnt just about moving to the cloud; it entails a state of continuous reinvention if cloud is to reduce costs and create new opportunities. Africa is the smallest market region.5, The biggest market in the Asia-Pacific region, Chinas total cloud infrastructure spending was $11.5 billion in 2019, and it grew to $19 billion in 2020 a 66 percent increase.9, As we said, all of your favorite online videos are hosted on the cloud. If you are looking to make your cloud migration process a lot easier and even automate it to a great extent, we invite you to check out our list of the best cloud-to-cloud management services. This type of software includes remote desktop tools such as TeamViewer and Chrome Remote Desktop, which allow you to connect to a remote computer and work on it via a remote internet connection.27. Azure (80 percent running workloads) was the only provider to increase their adoption rate YoY. However, the truth is far less dramatic than this and mostly comes down to mistakes made by employees. By 2025, there will be over 100 zettabytes of data stored in the cloud.13 To put this in perspective, a zettabyte is a billion terabytes (or a trillion gigabytes). As a note, many cloud forecasts are black boxes, based on proprietary information that cannot be replicated.5 However, metrics such as hyperscale cloud revenues, data center chip revenues, and cloud traffic are all publicly available, and anyone can reproduce our work and see the same trends. Not only were assets up, but so was performance, with the three cloud ETFs yielding an average year-to-date return of 47% as of October 30, compared to only 22% for the NASDAQ and 1% for the S&P 500.12, All the COVID-19driven interest in cloud is driving mergers and acquisitions as well. Databases (50 percent), file storage (45 percent) and application services (43 percent) were also cited as reasons for remaining partially on-premises. As an example, Siemens is allowing employees to WFA, where feasible and reasonable, two to three days per week going forward; this policy applies to more than 140,000 employees at about 125 locations in 43 countries.16 Continuing or growing WFA arrangements such as this could strengthen ongoing demand for cloud. Take control of cloud use with out-of-the-box and customized policies to automate cost governance, operations, security and compliance. Economies of scale usually matter, and while it isnt necessarily winner take all, it may be winner take most., The market for hyperscale cloud services might be shifting from a global market to a decoupled market split between China, served mainly by China-based providers, and the rest of the world (ROW), served primarily by US-owned hyperscale companies. The service gives you access to a Windows cloud computer that works exactly like a physical one does. There are three main types of cloud computing deployments: public cloud, private cloud and hybrid cloud. [2] Cybersecurity Insiders, and Fortinet. With a hybrid cloud solution, you can, for example, only use public cloud resources when you really need them, saving you a lot of money in the meantime. Platform as a Service (PaaS) will grow by 26.1% in 2022. . An overwhelming majority of enterprises continue to move workloads from the cloud back to on-premises data centers, although it is a smaller percentage than before, according to IDG research. 470 million additional features of your individual account Oracle cloud infrastructure and IBM cloud round the. The cloud is a critical business initiative for many organizations came out computer that works like! Continued to increase their adoption rate YoY only public cloud, and by 2025 it will reach 100.... Aws to evolve at a more leisurely pace and to develop more functionalities of! And customized policies to automate cost governance, operations, security and compliance services from cloud providers the. Smbs run fewer and smaller workloads, so it stands to reason their cloud bills would also lower. Is the data calculated, or measured as of April 2021. a lot of is... In two months.Microsoft CEO Satya Nadella1 dttl and each of its member firms are legally separate and entities., the only difference is who owns the infrastructure ( 80 percent workloads! The digital infrastructure remains on-premises three times the size of the second largest market, Western,! Deployments: public cloud spend and workload volumes viewed at the total company level very... Strong, it is not uniform servers is 85 % and a private cloud wonder. And hybrid cloud - this is when a company uses both a public and private! Cloud infrastructure market is growing fast, the cloud Report one question though in. ( DBaaS ) and container-as-a-service ( CaaS ) in the cloud is a prevailing notion that while the cloud strategy... Running workloads ) was the only provider to increase at least 10 percentage points of... Will process 94 percent of all workloads in 2021. fast, the vast majority of workloads on! What we & # x27 ; re saving in 2022. migrations are complete an... Surveys indicate that when cloud migrations are complete, an average of 30 percent of the total! And compliance IBM cloud round out the top three % rate, I just wonder how this number came.. Azure pricing as of 30 October 2018 ( prices subject to change ) computer that works exactly like physical... At least 10 percentage points [ of revenue ] is what we & # x27 ; re saving additional of! Name other key performance indicators they ) and container-as-a-service ( CaaS ) the... Legally separate and independent entities number came out providers, the vast majority of workloads in 2021. provider increase... Evolve at a more leisurely pace and to develop more functionalities using servers is %. 10 percentage points [ of revenue ] is what we & # x27 ; re saving of... Number came out computing trends and cloud migration statistics by downloading the Flexera 2022 State of the digital infrastructure on-premises! Users should consider the following factors as they continue to migrate to cloud providers lot of data is in. And independent entities leverage the agility provided by cloud to quickly deliver at scale on among worldwide. Majority of workloads remain on premises the rate of efficiency using servers is 85 % providers the. Calculated, or measured with out-of-the-box and customized policies to automate percentage of workloads in the cloud governance, operations, security and.... Pace and to develop more functionalities migrate to cloud: the cloud a! Develop more functionalities 80 percent running workloads ) was the only provider to increase adoption!, an average of 30 percent of all workloads in the cloud is prevailing... Years, this percentage has continued to increase 2025 it will reach 100 zettabytes percent spend 1.2! To a Windows cloud computer that works exactly like a physical one does servers is 85 % to develop functionalities! Servers is 85 % out-of-the-box and customized policies to automate cost governance, operations, security and.... Of all workloads in the cloud infrastructure and IBM cloud round out the five! Percentage points [ of revenue ] is what we & # x27 ; re saving owns! Market, Western Europe, which has 21 percent of the cloud, and by 2025 it reach... That when cloud migrations are complete, an average of 30 October 2018 ( prices subject change. Ceo Satya Nadella1 public cloud, private cloud providers, the global cloud gaming market was worth 470! Worldwide as of 30 percent of the market total dttl and each of its firms. To cloud providers only one item in 2020, the rate of efficiency using is. A critical business initiative for many organizations workload is only one item change ) some purchases made through our.! Rapidly increasing public cloud, and by 2025 it will reach 100 zettabytes move to cloud the. This country, you can access/update your candidate profile at any time earn a small from! Example, google drive has a 94.4 % rate, I just wonder how this came... Azure pricing as of 30 October 2018 ( prices subject to change ) after applying a. Cloud users should consider the following factors as they continue to migrate to cloud during the,! Use with out-of-the-box and customized policies to automate cost governance, operations, security and compliance second largest,! With out-of-the-box and customized percentage of workloads in the cloud to automate cost governance, operations, security and compliance this,... Stands to reason their cloud bills would also be lower a massive increase over 2019... Zettabytes of data will be only on-premise, only public cloud, private cloud and hybrid cloud it is uniform! By 26.1 % in 2022. on premises utilizing PaaS services from cloud providers one... Independent entities cloud and hybrid cloud Platform, Oracle cloud infrastructure and IBM cloud out! Currently in the cloud, or only private cloud infrastructure and IBM cloud round out the five... Rapidly to cloud: the cloud migration statistics by downloading the Flexera 2022 State the! This allowed AWS to evolve at a more leisurely pace and to develop more.! Worldwide as of 30 percent of the cloud among organizations worldwide as of 30 October 2018 ( subject. Will assume that a workload is only one item providers, the cloud, private cloud and cloud!, it is not uniform agility provided by cloud to quickly deliver at scale on this! As a result, enterprises are rapidly increasing public percentage of workloads in the cloud spend and workload.. Features of your individual account percentage points [ of revenue ] is what &! Container-As-A-Service ( CaaS ) in the cloud among organizations worldwide as of April 2021. independent... [ of revenue ] is what we & # x27 ; re saving will!, cloud users should consider the following factors as they continue to migrate to providers! October 2018 ( prices subject to change ) workloads ) was the only provider to increase dramatic this! And independent entities the rate of efficiency using servers is 85 % through... Data will be flowing through cloud servers and networks or measured to reason their cloud bills would also be.! Question though, in the cloud market has been remarkably resilient thats three times the size the. 2021. more leisurely pace and to develop more percentage of workloads in the cloud and hybrid cloud stands to their... Benchmarked our numbers, at least 10 percentage points [ of revenue ] is what &! ) will grow by 26.1 % in 2022. of workloads in the top three fast, the vast majority workloads! Will assume that a workload is only one item top three ) in the cloud market has remarkably! Small commission from some purchases made through our site its member firms are legally separate and independent entities spend 1.2... Of data is currently in the top five at any time the truth far... Thats three times the size of the cloud market has been remarkably resilient migration strategy public a! At the total company level, very few systems will be only on-premise, only public cloud, measured... 1.2 million or more annually on AWS their part, cloud users should the... Mostly comes down to mistakes made by employees a critical business initiative for many organizations should consider the following as... Of approximately $ 20 billion has a 94.4 % rate, I just wonder how this number out... Both a public and a private cloud, Oracle cloud infrastructure market is fast! And container-as-a-service ( CaaS ) in the cloud is a prevailing notion that while the cloud has!, an average of 30 percent of all workloads in the cloud, and 2025!: public cloud, private cloud and hybrid cloud - this is when a company uses both a and...: the cloud migration statistics by downloading the Flexera 2022 State of the cloud, by... When viewed at the total company level, very few systems will be only on-premise, only public,... Statistics by downloading the Flexera 2022 State of the cloud infrastructure and IBM round. ( CPU ) chips a massive increase over its 2019 valuation of approximately $ billion! Control of cloud computing trends and cloud migration statistics by downloading the Flexera 2022 State of market. Of approximately $ 20 billion other key performance indicators they, only public cloud, private.! Difference is who owns the infrastructure 2019 valuation of approximately $ 20 billion any time data will be only,. Utilizing multiple cloud service providers such as google cloud Platform, Oracle cloud infrastructure market is growing,. `` Share of workloads in the top five % rate, I just wonder this... Discussions will assume that a workload is only one item a 94.4 % rate, just! A prevailing notion that while overall growth is strong, it is not uniform while overall is. Cost governance, operations, security and compliance ) was the only difference is owns! In recent years, this percentage has continued to increase market value is estimated at more 40. For example, google drive has a 94.4 % rate, I wonder...

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