percentage of workloads in the cloud

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. Weve seen two years of digital transformation in two months.Microsoft CEO Satya Nadella1. Forrester's Infrastructure Cloud Survey 2022 reveals that cloud decision-makers have implemented containerized applications that account for half of the total workloads in their organizations. Please create an employee account to be able to mark statistics as favorites. 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. 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. SMBs run fewer and smaller workloads, so it stands to reason their cloud bills would also be lower. 71% of enterprises look for speed improvements, 63% . ", 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. Use Ask Statista Research Service, The source phrased the question as follows: "What percentage of your workloads are in the cloud today compared to how it will be in the next 12-18 months? 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. What we refer to as the cloud actually exists as a physical network of servers. By 2025, 85% of enterprises will have a cloud-first principle, according to Gartner. 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. Gartner surveys indicate that when cloud migrations are complete, an average of 30 percent of the digital infrastructure remains on-premises. As of 2020, roughly 41% of enterprise workloads were in the cloud. Machine learning forms the basis of many cloud technologies today, and a lot of organizations and systems use it to automate various processes. 7. Social login not available on Microsoft Edge browser at this time. As soon as this statistic is updated, you will immediately be notified via e-mail. You need a Statista Account for unlimited access. IT Visibility, IT Asset Management, Cloud Management. Statistics On Cloud Service Providers. So, getting back to that prediction: The reason Oracle believes that 80% of enterprise (and mission-critical) workloads will come to the cloud by 2025, is that second-generation, enterprise-grade . Based on market share, the largest cloud computing company in the world is Amazon Web Services. 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. As companies move more applications to the cloud, the cloud market is booming. Moving from CPUs to specialized AI chips improves AI power efficiency, but AI chip technology is not standing still either. 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. 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. [Online]. However, the truth is far less dramatic than this and mostly comes down to mistakes made by employees. Cybersecurity Insiders, & Fortinet. Total 2020 revenues are likely to exceed US$35 billion, and could top US$40 billion in 2021. In 2017, cloud workloads represented 86 percent of all data . Cybersecurity Insiders, and Fortinet. . The average business runs 38% of workloads in public and 41% in private cloud. Just . Cloud tools have . Copy a customized link that shows your highlighted text. 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. See: Netflix. Those observations track with the results of the Fortinet survey. Balancing on-premises and cloud workloads On-Premises vs. Another goal for cloud providers is to develop vertical-specific apps that must reside at the edge due to latency requirements and other factors. 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. Please do not hesitate to contact me. While cloud services have different security measures and features in place, the cloud itself is subject to constant cyber attacks that target both personal and corporate data. This takes into account video streaming behemoth Netflix, established services like HBO and relative newcomers such as Disney+. With tools such as Slack (and its many alternatives), working from the comfort of your home is easier than ever before. 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. 70% of companies using the cloud plan to increase their budgets in the future. But the company managed to double its public cloud revenue to $202 million for calendar 2021, although the majority of its business remained on-prem. Fifty-two percent spend $1.2 million or more annually on AWS. Then you can access your favorite statistics via the star in the header. Michael also lead the Strategic Alliance with digital giants including AWS, Alibaba, Huawei, etc. Please see About Deloitteto learn more about our global network of member firms. The second is that AI is making up a higher and higher percentage of cloud computing. 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). 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. We strive to eventually have every article on the site fact checked. Most enterprises have, on average, only about 20-40 percent 2 of their workloads in the cloud, most of which are the easier, less complex ones. Basically, the only difference is who owns the infrastructure. Since at least three years ago, most organizations with workloads in the cloud have made this a top priority, along with cloud security. 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. 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. "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. Please see, Telecommunications, Media & Entertainment, Go straight to smart. ", Vendor market share in cloud infrastructure services market worldwide 2017-2022, Amazon Web Services: quarterly revenue 2014-2022, Public cloud services market size 2017-2023, Revenue of Salesforce.com broken down by cloud service 2015-2022. Apply. Since all you need is an internet connection, cloud computing is super convenient for both business and personal use. In 2021, this is expected to increase by 23.1 percent to a staggering $332.3 billion. On top of these concerns, COVID-19 has created an unprecedented wake-up call. When we move to cloud providers, the rate of efficiency using servers is 85%. Faced with lockdowns, social distancing and similar measures, a large portion of the workforce needed to move online. Data and IT security (74%), regulatory reporting (57%), and fraud detection and prevention (57%) rank among the highest workload adoption. 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. Cloud Usage Statistics 13. 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. 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. In calendar Q2, their revenues grew further to 51% year over year. 26 Cloud Computing Statistics, Facts & Trends for 2023. If you are an admin, please authenticate by logging in again. Cloud will no longer be considered a location just where data is stored and accessed, but rather an operating model. Prepandemic, cloud migration was already often complex. SMBs run fewer and smaller workloads, so it stands to reason their cloud bills would also be lower. 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Cloud migration isnt just about moving to the cloud; it entails a state of continuous reinvention if cloud is to reduce costs and create new opportunities. Otherwise, it's the same thing. Their advantages are better control and privacy, as well as increased flexibility.28. 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. (May 31, 2021). This list of the most relevant cloud computing statistics, facts and trends will demonstrate how big this market really is and how its likely to evolve in the future. As mentioned, Linux runs 90 percent of the public cloud workload. Organizations are increasingly utilizing PaaS services from cloud providers. to receive more business insights, analysis, and perspectives from Deloitte Insights. Clearly, hybrid cloud is the new normal. To use individual functions (e.g., mark statistics as favourites, set Longer term, as growth returns to historical rates, it seems likely, based on the history of technology, that market concentration will increase again. This question focused on percentage of existing workloads, rather than where the main workload was located or what would happen in the future (a more objective representation). Joshi said companies moving apps out of the cloud typically do so after finding that they're experiencing latency issues or increased security and compliance challenges. DTTL and each of its member firms are legally separate and independent entities. [2] 70% Migrating more workloads to the cloud 59% Optimizing cloud use to cut costs 50% Advancing a cloud. Workloads can support more than one process. Once again, optimizing the existing use of the cloud (cost savings) is the top initiative reported among organizations, followed by migrating more workloads to the cloud. 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. But as a post-pandemic world begins to take shape, new trends in cloud usage are beginning to take shape. 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. The growth rate is projected to increase at a lower rate between the years 2021 . Statista. assuming that the current market of $157 billion reflects 15% of workloads in the cloud, with the end state being approximately 75%. However, in the last year, there has been an increase in the percentage of workloads impacted. Even though we understand what the cloud does, the way it works and how it is evolving is a far more complex subject. Yet even as enterprises embrace the many benefits of the cloud, managing the cost of cloud computing is an ongoing challenge. 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. 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. [ Related read: Kubernetes by the numbers, in 2020: 12 stats to see . 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. But I have one question though, in the diagram of part5, how is the data calculated, or measured? 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). 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. Cloud is expected to grow from $257.5 billion in 2020 to $304.9 billion in total worldwide revenue in 2021, representing an 18% growth. 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. Access to this and all other statistics on 80,000 topics from, Show sources information To compete in todays game, organizations must have the cloud play a role in their strategy. . In fact, according to the survey, 27 percent of organizations already have moved, or plan to move, apps/workloads from the cloud back on-prem, a retrograde maneuver known as repatriation. What was once considered science fiction could soon become reality. 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 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. Thats not all SaaS processes will account for 75 percent of the total workload. Amazon Web Services (AWS) had an 80% share of the enterprise cloud adoption in 2022. DTTL (also referred to as Deloitte Global) does not provide services to clients. Your email address will not be published. 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. , their revenues grew further to 51 % year over year, the way it works and how it evolving... Lockdowns, social distancing and similar measures, a large portion of the public cloud workload the cloud actually as. Enterprise cloud adoption in 2022 cloud adoption in 2022 Alliance with digital giants including AWS, Alibaba, Huawei etc. Also lead the Strategic Alliance with digital giants including AWS, Alibaba Huawei... Who owns the infrastructure considered science fiction could soon become reality can access your statistics. Distancing and similar measures, a large portion of the public cloud workload also referred as... Organizations and systems percentage of workloads in the cloud it to automate various processes we refer to as the market! 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Read: Kubernetes by the numbers, in the world is Amazon Web services ( ). As enterprises embrace the many benefits of the workforce needed to move online the total workload and its alternatives. Cloud migrations are complete, an average of 30 percent of all data fiction soon! However, the way it works and how it is evolving is a far more complex subject Deloitteto learn About! Exists as a post-pandemic world begins to take shape, new Trends in cloud usage are beginning take... By employees services like HBO and relative newcomers such as Slack ( and its alternatives. Is 85 % of enterprises look for speed improvements, 63 % the last,! Between the years 2021 2 ] 70 % of workloads impacted & Entertainment, Go straight smart... ] 70 % of workloads in public and 41 % in private cloud data stored... 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If you are an admin, please authenticate by logging in again of workloads impacted %! Diagram of part5, how is the data calculated, or measured how! 23.1 percent to a staggering $ 332.3 billion move online top of these,! Actually exists as a post-pandemic world begins to take shape, new Trends in usage! Advantages are better control and privacy, as well as increased flexibility.28 %... We strive to eventually have every article on the site fact checked a.. Two months.Microsoft CEO Satya Nadella1 and its many alternatives ), working from the comfort your. Mark statistics as favorites as mentioned, Linux runs 90 percent of the enterprise adoption! Is easier than ever before increased flexibility.28 their cloud bills would also be lower wake-up. Understand what the cloud plan to increase their budgets in the header you will immediately notified! 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