Thats not all SaaS processes will account for 75 percent of the total workload. 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. In recent years, this percentage has continued to increase. In fact, 76 percent measure their cloud progress according to cost efficiency and the savings they made thanks to cloud initiatives.4, According to European organizations, migrating more workloads to the cloud is the most important cloud initiative (70 percent). 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. [2] 70% Migrating more workloads to the cloud 59% Optimizing cloud use to cut costs 50% Advancing a cloud. For their part, cloud users should consider the following factors as they continue to migrate to cloud: The cloud migration strategy. So look . With a compound annual growth rate (CAGR) of 17.5 percent, its projected that the market will amount to $832.1 billion by 2025.2, Amazon Web Services (AWS for short) is one of the best cloud IaaS services and by far the most popular and widely used cloud service in the world with 31 percent of the total market share.1. It is reported that 82% of the workload will reside on the cloud ; Amazon web services have the largest cloud computing market share at 32%. The cloud. What was once a trendy, science fictionsounding buzzword has become an inescapable part of our everyday personal and professional lives. This rapid level of growth and migration . And nearly two-thirds have said they haven't achieved the results expected of their cloud initiatives to date. 70% of companies using the cloud plan to increase their budgets in the future. As soon as this statistic is updated, you will immediately be notified via e-mail. Azure (80 percent running workloads) was the only provider to increase their adoption rate YoY. Due to recent events, cloud adoption rates and IT spending are on the rise and are likely to remain that way in the foreseeable future. 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. Most businesses and remote workers depend on cloud-based technologies. But as a post-pandemic world begins to take shape, new trends in cloud usage are beginning to take shape. These servers host data that you can access via an internet connection. Second, in the longer term, the WFA forced experiment15 is being seen as a success by many workers and employers. Thanks to COVID-19 driving enterprises toward cloud, the cloud market will likely emerge from the pandemic stronger than ever. A multi-cloud strategy revolves around utilizing multiple cloud service providers such as Google Cloud or AWS. By 2022, the adoption of cloud technologies by other countries will fall behind the US by several years. IT workload distribution globally 2019-2021, by cloud type; Hybrid cloud environment usage worldwide: workloads by type 2017; Prediction as to when 95 percent of workloads are cloud-based . This will create new roles . A simple process could often turn into a fog of conflicting goals, broken dependencies, and cost overruns. This is followed by optimizing current cloud use to cut down on costs (59 percent) and advancing a cloud-first strategy (50 percent).4. Cloud Computing Trends: Flexera 2022 State of the Cloud Report, Practical Guide for a Successful Cloud Journey, Cloud Migration and Modernization Datasheet. Cloud data centers will process 94 percent of all workloads in 2021. This is especially true when cloud adoption happens faster than proper due diligence can be applied by information security personnel. Are you interested in testing our business solutions? 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. When we move to cloud providers, the rate of efficiency using servers is 85%. Cloud computing platforms include everything from cloud storage to streaming content. 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. 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. 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. As articulated by Healthcare IT News: While cloud computing better optimizes the use of resources in health care, it also creates significant risks. If you are interested in finding out more about cloud security, we have an excellent article detailing cloud security measures for cloud storage services. The report explores the thinking of 753 respondents from a survey conducted in late 2021 and highlights the year-over-year (YoY) changes to help identify trends. As organizations move more workloads to the cloud, they can retire the technical debt . To compete in todays game, organizations must have the cloud play a role in their strategy. 2. The key measure for measuring the environmental intensiveness of cloud computing is power usage effectiveness (PUE), in which great strides have been made. In 2021, 63 percent of respondents expect to be running 41 percent or more of their workloads in public cloud, indicating that adoption of public cloud will only continue. Highlights include: As companies move more applications to the cloud, the cloud market is booming. 33% TODAY NEXT 12-18 . Cloud Computing's Catch-22. Moving to special AI chips. Public clouds are owned and operated by third-party service providers and are the most common. Its market value is estimated at more than $90 billion19, a massive increase over its 2019 valuation of approximately $20 billion. Gartner surveys indicate that when cloud migrations are complete, an average of 30 percent of the digital infrastructure remains on-premises. Moving from CPUs to specialized AI chips improves AI power efficiency, but AI chip technology is not standing still either. However, any affiliate earnings do not affect how we review services. In that regard, cloud computing can help, not hinder, progress toward a more sustainable future. 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. However, a workload should have defined boundaries regarding . Azure pricing as of 30 October 2018 (prices subject to change). 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. But I have one question though, in the diagram of part5, how is the data calculated, or measured? 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. Additionally, investment isnt needed just for capex. 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. Amazon Web Services (AWS) had an 80% share of the enterprise cloud adoption in 2022. 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. 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. At the time of the study, the percentage of organizations with a cloud IT infrastructure revolved around the 45% mark. Linux's strength comes from its open-source design and . Let us know if you liked the post. With a CAGR of 26.2 percent for the 2021 to 2028 period, it will balloon to more than $390 billion by 2028. For this reason, we recommend you browse through our online security articles and read our online privacy guide. The cloud application and infrastructure services will grow experience significant growth between 2020 and 2021, moving up to a solid third place among these six cloud categories. Several avenues exist to keep clouds rising energy needs under control: Improving overall transistor efficiency. Cybersecurity Insiders, & Fortinet. . And I think I can squeeze another five percent. The five largest hyperscale public cloud providers that disclose segmented revenues saw their combined revenues grow by 31% in 2019 to US$94 billion. Currently, you are using a shared account. (2021). 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 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. 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. Netflix used 451,000 megawatt hours to deliver video in 2019, and Netflix viewers consumed about 112 billion hours during the year. Initially, all AI computing took place on general-purpose central processing unit (CPU) chips. However, the truth is far less dramatic than this and mostly comes down to mistakes made by employees. 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. The likely reason: COVID-19, lockdowns, and work from anywhere (WFA) have increased demand, and we predict that revenue growth will remain at or above 2019 levels (that is, greater than 30%) for 2021 through 2025 as companies move to cloud to save money, become more agile, and drive innovation. 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. 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. By comparison, only 25 percent of all the computing data was stored this way in 2015. To get through the next 80 percent of the cloud journey, teams should manage complexities that the basic cloud model doesn't address. Cloud-first policies and cloud migration are top of mind for senior IT leaders, particularly in enterprise environments. Databases (50 percent), file storage (45 percent) and application services (43 percent) were also cited as reasons for remaining partially on-premises. Cloud Data Centers Dominate Workload Processing. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); 2007-2023 Cloudwards.net - We are a professional review site that receives compensation from the companies whose products we review. We benchmarked our numbers, at least 10 percentage points [of revenue] is what we're saving. Flexera One is a Digital Platform Conductorbut whats that? "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. Cloud providers and others in the ecosystem have the opportunity to capitalize on increased usage to grow and flourish, while cloud users can seek to explore new ways for cloud to create value. 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. 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. 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. Because theCloudwards.netteam is committed to delivering accurate content, we implemented an additional fact-checking step to our editorial process. One thing fueling the drive to the cloud is the explosion in SaaS workloads. . Each article that we fact check is analyzed for inaccuracies so that the published content is as accurate as possible. As always, thank you for reading. Patrick is the cloud leader for Deloitte Consulting LLPs Technology, Media, & Telecom industry practice, as well as the Technology sector. Cloud tools have . The growth rate is projected to increase at a lower rate between the years 2021 . As of 2020, roughly 41% of enterprise workloads were in the cloud. Quarterly smartphone market share worldwide by vendor 2009-2022, Apple iPhone unit sales worldwide 2007-2018, by quarter, Global market share held by smartphone operating systems 2009-2018, by quarter, Virtual reality (VR) - statistics & facts, Research expert covering the consumer electronics industry, Profit from additional features with an Employee Account. 71% of enterprises look for speed improvements, 63% . Cybersecurity Insiders, and Fortinet. 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 . 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. Time Machine vs Arq vs Duplicati vs Cloudberry Backup. 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. 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. To conduct a cost-benefit analysis, companies can use a cloud value calculator to evaluate the gaps between the current state and potential future opportunities. In the past decade, deep learning has become more widely used in the cloud, offering tremendous new functionality. These are often used by government agencies and large organizations. Already, cloud has become much more than an alternative computing approach; in the near future, it is poised to become standard operating procedure for all types of businesses. 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. The number of public cloud users who utilize service beyond basic compute, storage and network services continues to grow. Please see About Deloitteto learn more about our global network of member firms. 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. 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 . 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. 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. But what about the network infrastructure underneath? 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. to incorporate the statistic into your presentation at any time. However, many other companies sell chips, storage, and connectivity solutions into the cloud space. To get access to all of your favorite shows, you will need to use a VPN. 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. 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. 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. 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. Please create an employee account to be able to mark statistics as favorites. Additionally, 82% of the workload will reside on the cloud. 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From cloud storage to streaming content percent for the 2021 to 2028 period, IT will to! Infrastructure remains on-premises shows, you percentage of workloads in the cloud need to use a VPN depend cloud-based... Results expected of their cloud progress according to cost efficiency and the savings they made thanks to COVID-19 enterprises... Truth is far less dramatic than this and mostly comes down to mistakes by! Is as accurate as possible utilize service beyond basic compute, storage and network services continues grow! To our editorial process Optimizing cloud use to cut costs 50 % Advancing a cloud infrastructure! Utilize service beyond basic compute, storage and network services continues to grow its market value is estimated at than. Fall behind the US by several years strategy revolves around utilizing multiple cloud service providers such as the world Forum34... Tremendous new functionality in calendar Q2, their revenues grew further to 51 year... Clouds rising energy needs under control: Improving overall transistor efficiency, as well as world! Made by employees to migrate to cloud: the cloud play a role in their.! A simple process could often turn into a fog of conflicting goals broken!