Many pundits as well as organizations, such as the World Economic Forum34 and the OECD,35 have called for a green reset following COVID-19. 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 . [2] 70% Migrating more workloads to the cloud 59% Optimizing cloud use to cut costs 50% Advancing a cloud. 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. So look . This has proven to be invaluable over the past two years to meet evolving needs presented by the COVID-19 pandemics impact on business. 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. SMBs run fewer and smaller workloads, so it stands to reason their cloud bills would also be lower. After applying for a job in this country, you can access/update your candidate profile at any time. 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. The second most popular cloud storage service Dropbox has a huge following as well, with over 700 million reported users, according to its financial statements.24, In 2020, the total worth of the market was $371.4 billion. Cloud Customers Consume 77% Fewer Servers Let's first look at server utilization and the number of servers required to support a given group of workloads. Even though we understand what the cloud does, the way it works and how it is evolving is a far more complex subject. As the leader of Deloitte China Cloud Practice as well as Tech Strategy practice, Michael provides Tech Strategy, Cloud and Digital Transformation service to many large organizations covering industries like Consumer Product, Retail, Energy &Resource, Industry Products, FSI, etc. Cybersecurity Insiders, Fortinet. 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. Additionally, 82% of the workload will reside on the cloud. Thats the only way we can improve. Plus, Linux also has 62 percent of the embedded market share, and 99 percent of the supercomputer market share. Cloud Data Centers Dominate Workload Processing. Private cloud-only usage also rose during the past year, albeit slightly, from about 23% in 2020 to 25% in 2021. 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. Hyperscale data centers do even better on the PUE scale, at around 1.11.2.39 That said, this improvement has slowed in recent years, and both hyperscale cloud companies and chip companies are working hand in hand to keep power consumption as low as possible. "The most common workload preventing IT departments from lifting all services to the cloud was 'Print & Imaging Services' (55 percent)," the company said in a March 10 news release. Basically, the only difference is who owns the infrastructure. Simply select text and choose how to share it: Email a customized link that shows your highlighted text. 2. For the complete survey results, download the free Flexera 2022 State of the Cloud Report. Over time, more specialized AI-specific kinds of chips were put into data centers: graphics processing units (GPUs, used for both training and inference), field programmable gate arrays (FPGAs, mainly used for inference), and application-specific integrated circuits (ASICs, used for both training and inference. With 34 percent, men are twice as likely to fall for phishing scams compared to women (17 percent).11. This shift is driven by the growing interest in leveraging containers to speed deployment, scale operations and increase the efficiency of workloads running in the cloud. Clearly, hybrid cloud is the new normal. The cloud migration forecast: Cloudy with a chance of clouds has been saved, The cloud migration forecast: Cloudy with a chance of clouds has been removed, An Article Titled The cloud migration forecast: Cloudy with a chance of clouds already exists in Saved items. Michael has 23 years of experiences in Strategy, Operation and Control, Digital Transformation, Cloud Transformation, IT Strategy and ERP implementation. to receive more business insights, analysis, and perspectives from Deloitte Insights. By 2025, IT executives expect that 30% of business workloads will reside in the private cloud, while 28% will be in the public cloud. Growth in cloud computing has been a megatrend over the last decade, with the market experiencing triple-digit annual growth as recently as 2015. It is projected that this market will grow to more than $76 billion in 2021. 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. As of 2020, roughly 41% of enterprise workloads were in the cloud. Duncan Stewart is the director of research for the technology, media, and telecommunications (TMT) industry for Deloitte Canada. In the context of a cloud adoption, a workload is a collection of IT assets (servers, VMs, applications, data, or appliances) that collectively support a defined process. Your email address will not be published. What we refer to as the cloud actually exists as a physical network of servers. 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. In todays increasingly digital world, the way a business approaches its cloud computing strategy is paramount. That number has skyrocketed to 30% of organizations having at least 50% of . Copy a customized link that shows your highlighted text. See: Netflix. In the past decade, deep learning has become more widely used in the cloud, offering tremendous new functionality. 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). Machine learning forms the basis of many cloud technologies today, and a lot of organizations and systems use it to automate various processes. Longer term, as growth returns to historical rates, it seems likely, based on the history of technology, that market concentration will increase again. SMBs will leverage the agility provided by cloud to quickly deliver at scale on . Various tangible and measurable indicators highlight the magnitude of this acceleration, including workload, revenues among public cloud providers, revenues among the semiconductor companies whose chips power the cloud, and growth in cloud traffic across global telecom networks. However, cloud computing makes data governance much easier, with tools such as the excellent EFSS, Egnyte.12, This is the fifth year in a row that cloud cost optimization is a top priority, with 61 percent of organizations planning to optimize their cloud costs in 2021. However, 53 percent of SMBs spend more than $1.2 millionup from 38 percent last year. And nearly two-thirds have said they haven't achieved the results expected of their cloud initiatives to date. Cloud Computing Trends: Flexera 2022 State of the Cloud Report, Practical Guide for a Successful Cloud Journey, Cloud Migration and Modernization Datasheet. While an earlier study by Spiceworks Ziff Davis had found that cloud use accounted for 40 percent of workloads, that percentage was expected to increase to 50 percent of workloads by 2023 . Public clouds are owned and operated by third-party service providers and are the most common. 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. Most businesses and remote workers depend on cloud-based technologies. For example, google drive has a 94.4% rate, I just wonder how this number came out. One thing is certain: to remain competitive and maximize the available advantages, organizations must make strategic decisions about cloud computing, cloud architecture, usage of public clouds, effective tooling, cloud migration and cost management. 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. These services include everything from simple cloud storage to cloud infrastructure platforms, like AWS. In calendar Q1 2020, they saw growth explode by 42% compared to the previous year. For their part, cloud users should consider the following factors as they continue to migrate to cloud: The cloud migration strategy. However, any affiliate earnings do not affect how we review services. Hybrid clouds combine the advantages of public and private clouds. Thirty-three percent reported spending $1.2 million or more on Google Cloud Platform. A recent survey from LogicMonitor found that 83% of enterprise workloads are now in the cloud. Otherwise, it's the same thing. (LogicMonitor, 2020) Meanwhile, 20% of businesses spend over $12 million on public cloud annually. This means that while overall growth is strong, it is not uniform. On top of these concerns, COVID-19 has created an unprecedented wake-up call. As a Premium user you get access to the detailed source references and background information about this statistic. With tools such as Slack (and its many alternatives), working from the comfort of your home is easier than ever before. A quarter (25%) of respondents cited private cloud as their most commonly used deployment model, the highest percentage after multicloud (36%). In recent years, this percentage has continued to increase. With more than 25 years of experience, he has steered large-scale digital and enterprise transformations, helping to enable enhanced market competitiveness for some of the worlds most influential brands. 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. . 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%. Compared to the same period in 2020, this was a 35 percent year-on-year growth and a five percent quarter-on-quarter rise. In calendar Q2, their revenues grew further to 51% year over year. The three largest semiconductor companies that disclose segmented data center sales saw their combined revenues grow by only 3% in 2019 to just under US$30 billion. In calendar Q2, growth showed a 25% year-over-year increase, which rose slightly to 27% in calendar Q3, resulting in a 28% growth rate over the first nine months of the year. This trend will persist well after the pandemic.23, One emerging development for hyperscale cloud providers is the intelligent edge. Even if we disregard these, current cloud computing stats speak volumes about the state of cloud computing and where its headed. In May - June 2020, LogicMonitor commissioned an independent third-party research firm to survey 500 IT decision makers from the US, Canada, UK, Australia and New Zealand to ascertain their views on IT automation, cloud migration and business continuity in the face of unexpected crises. A multi-cloud strategy revolves around utilizing multiple cloud service providers such as Google Cloud or AWS. Learn more about how Statista can support your business. Thank you for sharing this great article! In 2020, the global cloud gaming market was worth $470 million. The clouds importance cannot be overstated, and cloud technologies of all types and models will only become bigger and more essential in the years to come. On-premise workloads are predicted to shrink from 37% today to 27% of . Social login not available on Microsoft Edge browser at this time. 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 Malaysia, the first mainframe, the IBM System/360, was introduced in 1964. 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. This is because companies can't afford to run out of server capacity. And not only are edge AI chips relatively efficient already, but they are progressing rapidly, with one company announcing that its current edge AI solution is 25 times more efficient than last years model.47. Accessed March 01, 2023. https://www.statista.com/statistics/1266602/workloads-cloud-organizations-worldwide/. We test each product thoroughly and give high marks to only the very best. 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. Organizations are increasingly utilizing PaaS services from cloud providers. This is just one type of artificial intelligence, and it is no wonder that companies are looking into ways to invest in and expand this field.17. . Google Cloud Platform, Oracle Cloud Infrastructure and IBM Cloud round out the top five. In that regard, cloud computing can help, not hinder, progress toward a more sustainable future. We hope that you have found these cloud computing stats and trends both interesting and fun. 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. Thanks to COVID-19 driving enterprises toward cloud, the cloud market will likely emerge from the pandemic stronger than ever. Tell us what you think in the comments below. However, many other companies sell chips, storage, and connectivity solutions into the cloud space. Flexible consumption models, also known as everything (or anything) as a service or XaaS, have become an increasingly important strategic shift for enterprises across all industries. Flexera cited as a leader by independent research firm for cloud cost management and optimization. Additionally, investment isnt needed just for capex. Are you interested in testing our business solutions? The cloud is a vital online technology that is used all over the world. Michael also lead the Strategic Alliance with digital giants including AWS, Alibaba, Huawei, etc. 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. On-premises data centers typically have fairly low server utilization rates. The three major types of cloud computing are: Infrastructure as a Service (IaaS), Software as a Service (SaaS) and Platform as a Service (PaaS). (May 31, 2021). Even though growth among the largest hyperscale public cloud providers had declined to only 31% annually by the end of 2019, and this rate had been projected to (slowly) decline further in 2020 and 2021 as the industry matures, growth in cloud continued to outpace that in many other sectors. IT Visibility, IT Asset Management, Cloud Management. Michael also leads the GTM and cross-offering efforts within Consulting in North Region as Regional Consulting Leader. Private cloud - it's designed for internal use by a single organization. In recent years, this percentage has continued to increase. to incorporate the statistic into your presentation at any time. For example, if your default email client is Gmail, or if youve ever shared a file through Dropbox, youre already using the cloud, even if youre unaware of it. Consequently, the cloud infrastructure of a private cloud (the physical servers that host the private cloud) is maintained by that organization. The market in the first half of 2019 was about US$40 billion larger than in the first half of 2018, while the market in the first half of 2020 was about US$50 billion larger than in the first half of 2019. Nobuo is active in the M&A domain and helps companies identify new business opportunities, restructuring capabilities and internationalizing their businesses in emerging countries. 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. As noted above, increases in cloud usage mean increases in the cyberattack surface, making security more important than everespecially given the growth in usage driven by COVID-19. , the only difference is who owns the infrastructure migration strategy period in 2020, the cloud is a more! Or more on google cloud Platform, Oracle cloud infrastructure and IBM cloud round out the top five get to! 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