As a result, enterprises are rapidly increasing public cloud spend and workload volumes. . In fact, 76 percent measure their cloud progress according to cost efficiency and the savings they made thanks to cloud. Fifty-two percent spend $1.2 million or more annually on AWS. 3. A multi-cloud approach is still the de facto standard among organizations. In 2017, the global cloud storage market was worth around $30 billion and it steadily rose to more than $61 billion in 2020. In just the first four months of 2020, the value of completed data center acquisitions, at US$7.5 billion in only 28 deals, was greater than in all of 2019.13, Although cloud is growing rapidly overall, it serves multiple industries, many of which have cut spending sharply. Survey respondents ranked data warehouse, relational database as a service (DBaaS) and container-as-a-service (CaaS) in the top three. As just one example, Micron, a supplier of storage for multiple markets, said in Q2 2020 that Our cloud DRAM sales grew significantly quarter over quarter, with strong demand due to the work-from-home and e-learning economy and significant increases in e-commerce activity around the world. 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. Founder Jeff Bezos attributes AWS enormous success to its seven-year head start before facing serious competition. 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. Thats the basis of all cloud software, and one could argue thats how the internet works as a whole. We benchmarked our numbers, at least 10 percentage points [of revenue] is what we're saving. Cloud computing platforms include everything from cloud storage to streaming content. If you are interested in finding out more about cloud security, we have an excellent article detailing cloud security measures for cloud storage services. "That means that there is more complexity to manage . 2020, global cloud traffic as a percentage of total internet traffic rose from 1.26% to 1.83%, up by 45%. to incorporate the statistic into your presentation at any time. Beena Ammanath, Susanne Hupfer, and David Jarvis. Flexera cited as a leader by independent research firm for cloud cost management and optimization. What was once considered science fiction could soon become reality. 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). This will create new roles . Cloud Computing's Catch-22. DTTL and each of its member firms are legally separate and independent entities. Thank you. On-premise versus cloud workload. Deloitte analysis of publicly reported quarterly financial statements. "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. See: Netflix. 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. 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. 26 Cloud Computing Statistics, Facts & Trends for 2023. Moving from CPUs to specialized AI chips improves AI power efficiency, but AI chip technology is not standing still either. )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. To stay logged in, change your functional cookie settings. Cost governance systems can also help maintain control over expenses. Additionally, investment isnt needed just for capex. By 2025, 85% of enterprises will have a cloud-first principle, according to Gartner. More than 70% of companies have now migrated at least some workloads into the public cloud, according to Gartner research. 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%. . Public clouds are owned and operated by third-party service providers and are the most common. Unsurprisingly, 75 percent of enterprises point to cloud security issues as a top concern.8 Of those, 33 percent of respondents are extremely concerned, 42 percent are very concerned, while only 25 percent in total were unconcerned to moderately concerned. Because theCloudwards.netteam is committed to delivering accurate content, we implemented an additional fact-checking step to our editorial process. 2023. . In its Q4 2022 results, total revenue fell to $452 million, down 5 percent on a year earlier. 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. Cloud will no longer be considered a location just where data is stored and accessed, but rather an operating model. Eighty-nine percent of respondents reported having a multi-cloud strategy, and 80 percent are taking a hybrid approach by combining the use of both public and private clouds. We test each product thoroughly and give high marks to only the very best. KPIs for measuring cloud adoption success. There is a prevailing notion that while the cloud infrastructure market is growing fast, the vast majority of workloads remain on premises. As recently as 2018, cloud computing companies were attracting criticism for their energy consumption, with some assigning them the epithet energy hogs. More recent articles, however, have pointed out that these concerns are unjust. Data Disk IOPS Consumed Percentage and Data Disk Bandwidth Consumed Percentage; At the VM level: VM Cached IOPS . How to Access the Deep Web and the Dark Net, How to Securely Store Passwords in 2023: Best Secure Password Storage, How to Create a Strong Password in 2023: Secure Password Generator & 6 Tips for Strong Passwords, MP4 Repair: How to Fix Corrupted Video Files in 2019, Simple Cloud Computing Facts You Need to Know, cloud storage services with the best security and privacy, excellent article detailing cloud security measures, storage services with unlimited cloud storage. 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. By some metrics, growth was more or less flat in 2020; by some other ways of measuring growth, it increased faster than in 2019, even in the face of the steepest economic contraction in modern history. He has also served on the board of the Colorado Technology Association. By 2020, the percentage of workloads in the cloud is expected to be 83%, the latest cloud computing statistics reveal. 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. Moving to SaaS solutions eliminates the resources required to manage equivalent on-premises software packages. Hybrid cloud can take many forms, such as a combination of private with public cloud or public cloud with on-premise resources,2 but all offer the benefits of multiple deployment models. Traditional, non-cloud-enabled datacenter deployments were next, with 22% penetration . . Access to this and all other statistics on 80,000 topics from, Show sources information Balancing on-premises and cloud workloads On-Premises vs. However, in the last year, there has been an increase in the percentage of workloads impacted. Thanks to COVID-19 driving enterprises toward cloud, the cloud market will likely emerge from the pandemic stronger than ever. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Thats the only way we can improve. And the siloed and disjointed approach of yesterday will no longer be effective in todays fast-evolving digital world. It is critical to disrupt your market without interrupting your business during the migration.26, Cloud, security, and COVID-19. 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 percentage of cloud-based application software expenditures will rise from 57.7% in 2022 to 65.9% in 2025. The bottom line: while cloud security is paramount for any organization regardless of size, proper employee training and strict security guidelines are just as important. Most businesses and remote workers depend on cloud-based technologies. Respondents self-estimated that their organizations waste 32 percent of cloud spend, which is up from 30 percent last year. Gartner surveys indicate that when cloud migrations are complete, an average of 30 percent of the digital infrastructure remains on-premises. [ Related read: Kubernetes by the numbers, in 2020: 12 stats to see . As a result, more than 40 zettabytes of data will be flowing through cloud servers and networks. Its time to revitalize, rebuild and reimagine the future. Optimizing usage is a cost-control measure and migrating workloads can save money while driving agility. Global Technology, Media & Telecom Industry Leader, Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (DTTL), its network of member firms, and their related entities. Cloud computing output rose by 600% between 2010 and 2018, while its energy use rose only 6%.36. 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. Get the latest insights in cloud computing trends and cloud migration statistics by downloading the Flexera 2022 State of the Cloud Report. Please create an employee account to be able to mark statistics as favorites. A quarter (25%) of respondents cited private cloud as their most commonly used deployment model, the highest percentage after multicloud (36%). This rapid level of growth and migration . Flexera One is a Digital Platform Conductorbut whats that? Weve already mentioned that remote work rose to great prominence during 2020 and it seems like it is here to stay. This includes cloud storage providers like Sync.com and pCloud, as well as large platforms like Microsoft Azure. 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. An additional 20% are predicted to be private-cloud-based followed by another 22% running on hybrid cloud platforms by 2020. Naturally, remote desktop software followed suit. What we refer to as the cloud actually exists as a physical network of servers. The proliferation of cloud software, coupled with the disruption of 2020, has made the message loud and clear for organizations: digitize or die. In recent years, this percentage has continued to increase. Register in seconds and access exclusive features. The cloud computing market is projected to grow way bigger in just the next five years. In recent years, this percentage has continued to increase. Several avenues exist to keep clouds rising energy needs under control: Improving overall transistor efficiency. Even though we understand what the cloud does, the way it works and how it is evolving is a far more complex subject. In Malaysia, the first mainframe, the IBM System/360, was introduced in 1964. A . 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). Improving special AI chips. 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. This adoption has been trending for a reason, as there are many . Its market value is estimated at more than $90 billion19, a massive increase over its 2019 valuation of approximately $20 billion. This adoption has been trending for a reason, as there are many . (2021). In fact, just over half of businesses (52 percent) prefer cloud solutions that have their own native security tools.8, When we think of cyberattacks, we often picture hackers exploiting built-in cloud IT infrastructure weaknesses. On top of these concerns, COVID-19 has created an unprecedented wake-up call. Gen Zs and millennials are striving for balance and advocating for change. Show publisher information Take control of cloud use with out-of-the-box and customized policies to automate cost governance, operations, security and compliance. 71% of enterprises look for speed improvements, 63% . In calendar Q1 2020, they saw growth explode by 42% compared to the previous year. 80 percent of cloud management efforts will support 20 percent of the service incidents or trouble tickets. Let us know if you liked the post. In his leadership role, Nobuo Okubo guides strategy across the global network of Deloittes Technology professionals to ensure high-value approaches to client engagements and solutions. While this unprecedented growth can, in large part, be attributed to the pandemic, this industry was on a healthy upward trajectory long before 2020.26, Global Cloud Storage Market in Billions USD, 2017-2028. So in data centers, normally IT infrastructure is used on average at 40%. 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. Copy a customized link that shows your highlighted text. Azure has surpassed AWS for breadth of adoption for the first time. 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. 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. There are three main types of cloud computing deployments: public cloud, private cloud and hybrid cloud. Azure (80 percent running workloads) was the only provider to increase their adoption rate YoY. Learn more about how Statista can support your business. Yet even as enterprises embrace the many benefits of the cloud, managing the cost of cloud computing is an ongoing challenge. One of the best CRMs, Salesforce has a market capitalization of more than $200 billion.18 However, the company that arguably profited the most in the wake of the COVID-19 pandemic is the video conferencing service Zoom. Do you believe rapid cloud adoption and cloud infrastructure expansion are a good thing, or do you foresee issues with the market of cloud computing in the near future? The second is that AI is making up a higher and higher percentage of cloud computing. By some metrics, the cloud market grew even faster in 2020 than in 2019, even during the steepest economic contraction in modern history. . In 2021, this is expected to increase by 23.1 percent to a staggering $332.3 billion. The cloud workloads summary breaks down cloud approaches used by respondents like this: Public cloud: 40 percent; On-premises legacy: 31 percent; Private/hybrid cloud: 29 percent; The most popular workloads across all three approaches are: databases, analytics and web/content hosting, as shown here: Even if we disregard these, current cloud computing stats speak volumes about the state of cloud computing and where its headed. Private cloud-only usage also rose during the past year, albeit slightly, from about 23% in 2020 to 25% in 2021. 7. For computational environments, a workload is an expression of an ongoing effort of an application AND what is being requested of it. Cloud computing has profoundly changed the way we live our lives and conduct business. Basically, the only difference is who owns the infrastructure. To get through the next 80 percent of the cloud journey, teams should manage complexities that the basic cloud model doesn't address. 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. So with the same energy, we are managing . Organizations are moving to the cloud because of its scalability, economy and reachand theyre using a variety of metrics to measure its resulting business value. Select highlights of the report are included below. . 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). But as a post-pandemic world begins to take shape, new trends in cloud usage are beginning to take shape. For cloud providers, artificial intelligence (AI) apps and dev tools are critical to attracting and maintaining enterprise customers and require investment or acquisition.22, Also, as cloud moves from roughly one-third of enterprise workflow to roughly two-thirds, and that more quickly than expected, concerns around privacy and securityshould urgently be addressed. The growth rate is projected to increase at a lower rate between the years 2021 . This growth is expected as more organizations migrate their IT workloads to the cloud. First, although lockdowns are unlikely to be as uniform as they were earlier in 2020, flareups in the pandemic and more-localized lockdowns are still driving WFA and cloud growth. 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. 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. As organizations move more workloads to the cloud, they can retire the technical debt . This trend will persist well after the pandemic.23, One emerging development for hyperscale cloud providers is the intelligent edge. Tell us what you think in the comments below. 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. In the same year, the total global data storage will exceed 200 zettabytes of data, meaning that around half of it will be stored in the cloud. 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. In the past decade, deep learning has become more widely used in the cloud, offering tremendous new functionality. 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. In the RightScale 2018 State of the Cloud Report, 96 percent of IT professionals surveyed said their companies were using cloud computing services, and 92 percent were using the public cloud.On average, organizations are running about 40 percent of their workloads in the cloud, and that percentage is growing. There are good reasons to believe the 15% . Consequently, the cloud infrastructure of a private cloud (the physical servers that host the private cloud) is maintained by that organization. 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