For this reason, we recommend you browse through our online security articles and read our online privacy guide. Additionally, 82% of the workload will reside on the cloud. 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. Prepandemic, cloud migration was already often complex. And the siloed and disjointed approach of yesterday will no longer be effective in todays fast-evolving digital world. 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. Organizations are increasingly utilizing PaaS services from cloud providers. Balancing on-premises and cloud workloads On-Premises vs. Of course, cloud is not the only solution in play. 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. In 2017, the global cloud storage market was worth around $30 billion and it steadily rose to more than $61 billion in 2020. So do nine of the top ten public clouds. This market draws on more than just cloud, but cloud is a critical enabler. It is projected that this market will grow to more than $76 billion in 2021. Prediction 1: By 2025, 30 percent of SMBs will shift half of their core workloads to the cloud to drive business agility and future resilience. With a predicted CAGR of 48.2 percent, it is expected that it will reach $7.24 billion in revenue by 2027.20 Read our online gaming statistics to learn more. Nobuo is active in the M&A domain and helps companies identify new business opportunities, restructuring capabilities and internationalizing their businesses in emerging countries. [2] Even though we understand what the cloud does, the way it works and how it is evolving is a far more complex subject. Criteria for which workloads move to cloud. 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. "It's fundamental to computing.". 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. But Zoho's example, along with others who have chosen to . Initially, all AI computing took place on general-purpose central processing unit (CPU) chips. The number of public cloud users who utilize service beyond basic compute, storage and network services continues to grow. . 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. Another goal for cloud providers is to develop vertical-specific apps that must reside at the edge due to latency requirements and other factors. 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. But its shifting. Business owners lament the fact that around 30 percent of their cloud budget goes to waste. Just . 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. In 2020, the global cloud gaming market was worth $470 million. As the operating model changes, the organization will turn to a product-orientated operating model where the entire value stream of the business and IT will have to be aligned by products. Naturally, remote desktop software followed suit. 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. The average annual PUE for large data centers has fallen by 36% over 13 years, from 2.5 in 2007 to 1.59 in 2020 (lower numbers are better). 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. On average, using the public cloud for office productivity applications emits about6 7 kg of CO2 per employee per year, while a nonvirtualized on-premise solution would be responsible for nearly 30 kg of CO2 per employee per year.37 In the consumer world, as of 2019, viewing a two-hour Netflix movie consumed just over eight watt-hours of energy from Netflix and its distribution partners.38 This is a fraction of the energy needed to drive to a movie theater or even of taking public transit. To stay logged in, change your functional cookie settings. A paid subscription is required for full access. Social login not available on Microsoft Edge browser at this time. Over time, transistors keep getting smaller. Because theCloudwards.netteam is committed to delivering accurate content, we implemented an additional fact-checking step to our editorial process. Azure (80 percent running workloads) was the only provider to increase their adoption rate YoY. 2023. Since at least three years ago, most organizations with workloads in the cloud have made this a top priority, along with cloud security. However, any affiliate earnings do not affect how we review services. 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. SMBs will leverage the agility provided by cloud to quickly deliver at scale on . A multi-cloud strategy revolves around utilizing multiple cloud service providers such as Google Cloud or AWS. 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. The advantages of using a public cloud include lower costs, no need for maintenance, high reliability and almost unlimited scalability.28, Private clouds are used by just one organization. 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. Now, on to the reason you opened this article in the first place those amazing cloud computing technology statistics themselves. We strive to eventually have every article on the site fact checked. 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. 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. Find out how. 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. 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. 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. For example, google drive has a 94.4% rate, I just wonder how this number came out. 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. As far as the industry landscape goes, many technology markets see significant concentration with one or two large companies accounting for almost all of the market, and cloud is no exception. This means that while overall growth is strong, it is not uniform. 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. Crucial issues such as security, compliance and location mean that many enterprises can't simply move data or workloads into the public cloud. 57% of businesses will migrate their workloads to the cloud in 2022. 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). 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. Cloud Computing Trends: Flexera 2022 State of the Cloud Report, Practical Guide for a Successful Cloud Journey, Cloud Migration and Modernization Datasheet. On-premise versus cloud workload. A quarter (25%) of respondents cited private cloud as their most commonly used deployment model, the highest percentage after multicloud (36%). For complete survey results, download the Flexera 2022 State of the Cloud Report. 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. Cybersecurity Insiders, and Fortinet. Currently, you are using a shared account. 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. Cloud spend is a good indicator of how much an enterprise is using a public cloud provider. We benchmarked our numbers, at least 10 percentage points [of revenue] is what we're saving. Cybersecurity Insiders, Fortinet. As of 2020, roughly 41% of enterprise workloads were in the cloud. Though chip spending and cloud revenues are not perfectly correlated, they are connected in the long run, with growth in chip revenues usually being a leading indicator: The chips need to be bought and installed in the data centers before the cloud revenues start flowing.9. May 31, 2021. 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. . Additionally, investment isnt needed just for capex. Cloud computing platforms include everything from cloud storage to streaming content. Cloud will no longer be considered a location just where data is stored and accessed, but rather an operating model. 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. Postpandemic, all of these factors will likely be even more challenging. Please create an employee account to be able to mark statistics as favorites. Moving to the cloud is a critical business initiative for many organizations. In 2019, total hyperscale spending on capex (which includes both IT infrastructure and physical infrastructure spend) was over US$120 billion.21 Given the continued growth in revenues, it seems likely that hyperscale capex will continue to grow at double digits, reaching US$150 billion by 2022. One way that hyperscalers can deal with both data transfer and app development is through partnerships.25. 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. For their part, cloud users should consider the following factors as they continue to migrate to cloud: The cloud migration strategy. No longer be considered a location just where data is stored and accessed, but rather an model... 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