With tools such as Slack (and its many alternatives), working from the comfort of your home is easier than ever before. Flexera One is a Digital Platform Conductorbut whats that? . DTTL and each of its member firms are legally separate and independent entities. While that could be true, new research from Synergy . Instead, the cloud market has been remarkably resilient. SMBs will leverage the agility provided by cloud to quickly deliver at scale on . Several avenues exist to keep clouds rising energy needs under control: Improving overall transistor efficiency. In 2021, this is expected to increase by 23.1 percent to a staggering $332.3 billion. In recent years, this percentage has continued to increase. Consequently, the cloud infrastructure of a private cloud (the physical servers that host the private cloud) is maintained by that organization. According to cybersecurity experts, the most pressing cloud security challenges are misconfiguration of the cloud infrastructure (68 percent); unauthorized access (58 percent); insecure API (52 percent); accounts, services or traffic hijacking (50 percent) and external data sharing (43 percent).8. Cloud spend is a good indicator of how much an enterprise is using a public cloud provider. The combined Public Cloud IaaS and PaaS market is forecast to grow to $400 billion in 2025 with a compound annual growth rate (CAGR) of 28.8% during the 2021-2025 forecast period. Depending on where you live, you may not be able to stream all the TV shows and movies you like. Additionally, investment isnt needed just for capex. The driving factors behind this increase can be attributed to a greater generation of large data sets, which in turn necessitates more file storage. On-premise versus cloud workload. An April 2020 survey of 50 CIOs found that respondents expected to see the proportion of total workload done on-premise drop from 59% in 2019 to 38% in 2021, a reduction of 41%.6 Moreover, they expected public clouds proportion of total workload to grow from 23% to 35% in the same timeframe, with private and hybrid cloud reaching 20% and 7% of workload, respectively. Only about 10 large public hyperscale cloud providers and chip companies break out their cloud revenues on a quarterly basis in detail. When we move to cloud providers, the rate of efficiency using servers is 85%. As of 2020, roughly 41% of enterprise workloads were in the cloud. On-premise workloads are predicted to shrink from 37% today to 27% of . A new study from the Cloud Security Alliance (CSA) and cloud security company AlgoSec finds that over half of organizations are running 41 percent or more of their workloads in public clouds . Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. In 2019, the remote desktop software market was worth $1.53 billion and it is estimated that it will reach $4.69 billion by 2027 at a CAGR of 15.1 percent. Linux's strength comes from its open-source design and . Much like the practical use of "workload" in other realms, it is focused primarily on the work itself, and what is used to achieve the work. Together, we can help you imagine, deliver, and run your business, wherever youcompete, using the latest technologies like cloud and cognitive, from strategy development through implementation. Because of this, 92 percent of organizations already have a multi-cloud strategy.4, Enterprises face many challenges, but three of the most prevalent issues include security (83 percent), managing cloud computing spending (82 percent) and governance (79 percent). Cost governance systems can also help maintain control over expenses. The intelligent edge is not a replacement for enterprise and hyperscale cloud data centers, but a way to distribute tasks across the network to increase timeliness, connectivity, and security.24 In the intelligent edge model, much of the data that used to always go to the data center doesnt go there anymore, and hyperscale providers should make sure this data finds its way back to centralized clouds for analysis and AI trainingand ensure that theyre not cut out of access to this data. However, a workload should have defined boundaries regarding . Thanks to COVID-19 driving enterprises toward cloud, the cloud market will likely emerge from the pandemic stronger than ever. Currently, you are using a shared account. Get the latest insights in cloud computing trends and cloud migration statistics by downloading the Flexera 2022 State of the Cloud Report. May 31, 2021. 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. To get through the next 80 percent of the cloud journey, teams should manage complexities that the basic cloud model doesn't address. Cybersecurity Insiders, and Fortinet. Improving special AI chips. And nearly two-thirds have said they haven't achieved the results expected of their cloud initiatives to date. Wasted cloud spend is a major issue and becomes more critical as cloud costs continue to riseand many organizations tend to underestimate their amount of waste. The service gives you access to a Windows cloud computer that works exactly like a physical one does. When asked what percentage of workloads organizations already have in the cloud, today 33% are running more than 50% of workloads in the cloud; in the next 12-18 months, that grows to 56%. The cloud computing market is projected to grow way bigger in just the next five years. DTTL and each of its member firms are legally separate and independent entities. You need at least a Starter Account to use this feature. Digital transformation continues and IT spend keeps growing. Further, not only is clouds energy use growing more slowly than its computing output, but cloud computing often uses less energy than the noncloud alternative. 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. As mentioned, Linux runs 90 percent of the public cloud workload. Please enable JavaScript to view the site. With a CAGR of 26.2 percent for the 2021 to 2028 period, it will balloon to more than $390 billion by 2028. As one example, the next-generation AI GPU Tesla T4 from Nvidia doubled the energy efficiency for inference AI compared to its predecessor, Tesla P4.45, Moving some AI processing to the edge. Fifty-two percent spend $1.2 million or more annually on AWS. Apply. May 23, 2022. MEGA (5.09 percent), Box (4.17 percent) and pCloud (1.39 percent), which have all made our list of best cloud storage services, are also widely used.21, Given the previous statistic, it comes as no surprise that Google Drive surpassed a billion users in 201822, while the Google Workspace cloud productivity platform as a whole reached 2 billion users in 202023. Cloud security is one of the biggest concerns for businesses. As a result, more than 40 zettabytes of data will be flowing through cloud servers and networks. What we refer to as the cloud actually exists as a physical network of servers. However, 53 percent of SMBs spend more than $1.2 millionup from 38 percent last year. As a Premium user you get access to the detailed source references and background information about this statistic. 80 percent of business impact from an outage will come from 20 percent of the systems affected by the outage. (May 31, 2021). More than 70% of companies have now migrated at least some workloads into the public cloud, according to Gartner research. 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. What is your opinion on cloud computing? For this reason, we recommend you browse through our online security articles and read our online privacy guide. According to the report, 52% of those who moved workloads from the cloud back on premises said either . 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. 58 percent: The percentage of enterprise workloads that enterprise workloads are on or are expected to be on hybrid or private cloud, based on the same Everest Group research. However, two factors suggest that this decline in growth could be less than expected. The average business runs 38% of workloads in public and 41% in private cloud. Yet even as enterprises embrace the many benefits of the cloud, managing the cost of cloud computing is an ongoing challenge. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). 1The 72 percent saving is based on one M32ts Azure VM for Windows OS in US Gov Virginia region running for 36 months at a Pay as You Go rate of ~$3,660.81 per month; reduced rate for a three year Reserved Instance of ~$663.45 per month. What was once considered science fiction could soon become reality. At the time of the study, the percentage of organizations with a cloud IT infrastructure revolved around the 45% mark. 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. See Terms of Use for more information. Respondents indicated their public cloud spend was over budget by an average of 13 percent, and expect their cloud spend to increase by 29 percent in the next twelve months. This has proven to be invaluable over the past two years to meet evolving needs presented by the COVID-19 pandemics impact on business. Just . See: Netflix. Cybersecurity Insiders, & Fortinet. Just 3% of organizations saw 51-60% of workloads impacted based on the data from 2021. Azure (80 percent running workloads) was the only provider to increase their adoption rate YoY. Those observations track with the results of the Fortinet survey. Cloud Workloads. Its largest currently built facility covers 1.3 million square feet, while the full campus will house eight separate data center structures and will stretch over 7.2 million square feet of server space upon completion.25, With an overwhelming 94.44 percent, Google Drive is by far the most used cloud storage service in the world. By 2025, 85% of enterprises will have a cloud-first principle, according to Gartner. The virtual computer can be streamed to any device you choose, which promises to bring a revolution in cloud computing, if everything works as planned. As organizations continue to spend more on public cloud, its easy to understand why FinOps is evolving and being adopted as a financial management discipline. The hyperscalers still offer remarkably good value for ad-hoc cloud infrastructure needs where the workload is highly variable or high-growth. On-premises data centers typically have fairly low server utilization rates. In the past decade, deep learning has become more widely used in the cloud, offering tremendous new functionality. As of mid-2020, there were 541 hyperscale data centers globally, with 26 added in the first half of 2020 and another 176 planned over the next few years.8 All of these data centers need chips. Although the growth in cloud in the first nine months of 2020 was very high, many forecasts expected it to slow to some extent in subsequent quarters. In Malaysia, the first mainframe, the IBM System/360, was introduced in 1964. Profit from the additional features of your individual account. These are often used by government agencies and large organizations. 600 operators said that, in 2021, about half of all workloads will still be in enterprise data centers, and only 18% of workloads in public cloud/SaaS services. 10 Over the same timeframe, overall internet traffic grew by 38%, meaning that cloud traffic, measured by the absolute number of bits per day, . This goes to show that non-cloud data centers are on their way out and will be superseded by cloud data centers in the near future.14. Even though we understand what the cloud does, the way it works and how it is evolving is a far more complex subject. 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. This includes cloud storage providers like Sync.com and pCloud, as well as large platforms like Microsoft Azure. An additional 20% are predicted to be private-cloud-based followed by another 22% running on hybrid cloud platforms by 2020. Amazon Web Services (AWS) had an 80% share of the enterprise cloud adoption in 2022. Gen Zs and millennials are striving for balance and advocating for change. Plus, all of your favorite online streaming content is hosted on cloud servers, whether its a Netflix series, your Spotify playlist or a YouTube channel. If you are interested in finding out more about cloud security, we have an excellent article detailing cloud security measures for cloud storage services. According to one Canadian AI researcher, The concern is that machine-learning algorithms in general are consuming more and more energy, using more data, [and] training for longer and longer.41. Chart. However, providers frequently change aspects of their services, so if you see an inaccuracy in a fact-checked article, please email us at feedback[at]cloudwards[dot]net. "11, Additionally, investors have been pumping funds into the cloud sector, with total assets in the three largest cloud exchange traded funds (ETFs) reaching US$6 billion as of mid-August 2020, US$2 billion more than at the start of the year. 80 percent of cloud management efforts will support 20 percent of the service incidents or trouble tickets. By comparison, only 25 percent of all the computing data was stored this way in 2015. ", Cybersecurity Insiders & Fortinet, Share of workloads in the cloud among organizations worldwide as of April 2021 Statista, https://www.statista.com/statistics/1266602/workloads-cloud-organizations-worldwide/ (last visited March 01, 2023), Share of workloads in the cloud among organizations worldwide as of April 2021 [Graph], Cybersecurity Insiders, & Fortinet, May 31, 2021. This adoption has been trending for a reason, as there are many . By 2025, Gartner estimates that over 95% of new digital workloads will be deployed on cloud-native platforms, up from 30% in 2021. Defy status quo, build momentum, stimulate ideas., achieve ambitious goals. Even if we disregard these, current cloud computing stats speak volumes about the state of cloud computing and where its headed. Duncan Stewart is the director of research for the technology, media, and telecommunications (TMT) industry for Deloitte Canada. Social login not available on Microsoft Edge browser at this time. This momentum will continue as companies plan to increase their cloud adoption in the wake of COVID-19.. Thats three times the size of the second largest market, Western Europe, which has 21 percent of the market total. According to a deep-packet inspection report on network traffic during the period from February 1 to April 19, 2020, global cloud traffic as a percentage of total internet traffic rose from 1.26% to 1.83%, up by 45%.10 Over the same timeframe, overall internet traffic grew by 38%, meaning that cloud traffic, measured by the absolute number of bits per day, rose by almost exactly 100%. There is a prevailing notion that while the cloud infrastructure market is growing fast, the vast majority of workloads remain on premises. The cloud is a vital online technology that is used all over the world. Innovation, transformation, and leadership occur in many ways. Thats not all SaaS processes will account for 75 percent of the total workload. Looking at the global cloud market by region, North America is leading the race, with 61 percent of the market total in 2020. )43 Although power efficiency varies by the exact chips and tasks, at a high level, GPUs are 10100 times more efficient than CPUs at training and 110 times as efficient at inference; FPGAs are 10100 times more efficient at inference; and ASICs are 1001000 times more efficient at both training and inference.44 As more of these AI-specific chips are deployed in data centers, data center efficiency should keep improving. More than 50 percent of the executives surveyed rely heavily on financial metrics principally, cost and ROI to determine the path to success for their cloud initiatives. 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. Statista. By some metrics, the cloud market grew even faster in 2020 than in 2019, even during the steepest economic contraction in modern history. Two megatrends account for much of cloud computings energy demands. These services include everything from simple cloud storage to cloud infrastructure platforms, like AWS. Michael also leads the GTM and cross-offering efforts within Consulting in North Region as Regional Consulting Leader. 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. We strive to eventually have every article on the site fact checked. He earned his masters and bachelors degrees from Texas A&M University, and completed executive education programs at Babson College and Arizona State Universitys Thunderbird School of Global Management. In fact, 76 percent measure their cloud progress according to cost efficiency and the savings they made thanks to cloud. In calendar Q2, their revenues grew further to 51% year over year. The five largest hyperscale public cloud providers that disclose segmented revenues saw their combined revenues grow by 31% in 2019 to US$94 billion. Most deployments will likely use a combination of a public cloud and a private environment that remain distinct entities but are bound together, an approach known as hybrid cloud. It is critical to disrupt your market without interrupting your business during the migration.26, Cloud, security, and COVID-19. (Flexera, 2020) Source: ITCandor. Public clouds are owned and operated by third-party service providers and are the most common. Cloud-first policies and cloud migration are top of mind for senior IT leaders, particularly in enterprise environments. First, to paraphrase Spider-Man, With great growth comes great capital expenditures. Higher-than-expected growth is good news, but to keep up with it, cloud providers will likely need to spend more on capex. Founder Jeff Bezos attributes AWS enormous success to its seven-year head start before facing serious competition. Companies that have shifted their offerings to an XaaS model have already experienced considerable success with both consumers and investors, challenging conventional valuations and placing pressure on industry players that are retaining traditional business models such as perpetual licensing and long-term contracts.20. With 94 percent [14] of all enterprises using cloud services in some form or another, its safe to say that cloud computing is here to stay and will only get even bigger in the future. By comparison, 52 percent also spend $1.2 million or more on Azure, indicating Azure has closed the gap for the first time in the eleven years of this survey. This will create new roles . . The cloud. What was once a trendy, science fictionsounding buzzword has become an inescapable part of our everyday personal and professional lives. Michael has 23 years of experiences in Strategy, Operation and Control, Digital Transformation, Cloud Transformation, IT Strategy and ERP implementation. As stated by the industry publication SiliconANGLE: Because the big cloud players are so large, they are exposed to industries that have been hard-hit by the pandemic. At one time, almost all AI was performed on the cloud, as edge devices such as smartphones, cameras, sensors, and robots lacked the onboard processing capacity for complex AI. Get the Deloitte Insights app, 2 years of digital transformation in 2 months, IDC expects 2021 to be the year of multi-cloud as global COVID-19 pandemic reaffirms critical need for business agility, Infrastructure and security challenges threaten multi-cloud and edge deployments, new survey from Volterra shows, Public clouds are bright spot as IT outlays slow due to virus, Hyperscale data center count reaches 541 in mid-2020; another 176 in the pipeline, COVID internet phenomena spotlight report, 2020 to be a bumper year for data centre M&Aamid Covid-19as value surpasses 2019 total, Cloud computing market remains strong, but its not immune to COVID-19, Siemens to let staff Work From Anywhere permanently, Global anything-as-a-service market to reach US$ 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 appropriately named Citadel is the largest data center ever constructed, and is located in Tahoe Reno, Nevada. Michael also lead the Strategic Alliance with digital giants including AWS, Alibaba, Huawei, etc. 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). However, not just any VPN will suffice check out our best VPN for Netflix and how to watch Disney+ outside the U.S. articles to find out which VPNs will do the trick (we also have a VPN statistics article). Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Weve seen two years of digital transformation in two months.Microsoft CEO Satya Nadella1. Highlights include: Cloud Computing Trends: Flexera 2022 State of the Cloud Report, Practical Guide for a Successful Cloud Journey, Cloud Migration and Modernization Datasheet. Let us know if you liked the post. Please do not hesitate to contact me. Compared to the same period in 2020, this was a 35 percent year-on-year growth and a five percent quarter-on-quarter rise. The increasing use of public cloud is driving up cloud spend for organizations of all sizes, and public cloud spend is now a significant line item in IT budgets. Two-Thirds have said they haven & # x27 ; s strength comes from its open-source design and, leadership. A workload should have defined boundaries regarding management efforts will support 20 percent smbs... Comes from its open-source design and leverage the agility provided by cloud to quickly deliver at scale.... Great growth comes great capital expenditures Strategy and ERP implementation keep clouds rising needs... Past two years to meet evolving needs presented by the outage will balloon to more than 70 of... Within Consulting in North Region as Regional Consulting Leader, science fictionsounding buzzword has become more widely in. 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