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. A paid subscription is required for full access. By 2025, 85% of enterprises will have a cloud-first principle, according to Gartner. Growth in cloud computing has been a megatrend over the last decade, with the market experiencing triple-digit annual growth as recently as 2015. 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. The cloud. What was once a trendy, science fictionsounding buzzword has become an inescapable part of our everyday personal and professional lives. Yet even as enterprises embrace the many benefits of the cloud, managing the cost of cloud computing is an ongoing challenge. 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. The hyperscalers still offer remarkably good value for ad-hoc cloud infrastructure needs where the workload is highly variable or high-growth. 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. (Source . Workload operations should . Going forward, cloud can support benefits including collaboration, automation, scale, innovation, and agility.31 For example, with regard to innovation, two-thirds of respondents in a 2018 Deloitte survey said that cloud fully allowed them access to the newest technologies.32 Another study showed that 93% of companies surveyed used the cloud for some or all of their AI needs, requiring less investment in infrastructure and expertise.33. 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. This goes to show that non-cloud data centers are on their way out and will be superseded by cloud data centers in the near future.14. 58 percent: The percentage of enterprise workloads that enterprise workloads are on or are expected to be on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. 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. 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. 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. Accessed March 01, 2023. https://www.statista.com/statistics/1266602/workloads-cloud-organizations-worldwide/. Would appreciate it if you can explain it , thanks! 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. However, 53 percent of SMBs spend more than $1.2 millionup from 38 percent last year. Please do not hesitate to contact me. 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. As a result, more than 40 zettabytes of data will be flowing through cloud servers and networks. To use individual functions (e.g., mark statistics as favourites, set 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. Highlights include: statistic alerts) please log in with your personal account. But Zoho's example, along with others who have chosen to . Hybrid cloud - this is when a company uses both a public and a private cloud. By 2022, the adoption of cloud technologies by other countries will fall behind the US by several years. 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. Profit from the additional features of your individual account. 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. 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. It is critical to disrupt your market without interrupting your business during the migration.26, Cloud, security, and COVID-19. Additionally, 82% of the workload will reside on the cloud. But the way that deep learning has become more powerful is by using much larger data sets for training, which means more computation, which in turn results in greater energy use. You need a Statista Account for unlimited access. Check out the latest blogs related to Cloud Management below. "11, Additionally, investors have been pumping funds into the cloud sector, with total assets in the three largest cloud exchange traded funds (ETFs) reaching US$6 billion as of mid-August 2020, US$2 billion more than at the start of the year. This is because companies can't afford to run out of server capacity. Cloud computing has profoundly changed the way we live our lives and conduct business. 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. "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. One thing fueling the drive to the cloud is the explosion in SaaS workloads. 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. 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. Many times, discussions will assume that a workload is only one item . IT Visibility, IT Asset Management, Cloud Management. Please create an employee account to be able to mark statistics as favorites. Blending mainframe power, reliability and security into the cloud landscape are essential to achieve the enterprise-wide agility and capability required to keep pace with ever-changing business needs. This includes cloud storage providers like Sync.com and pCloud, as well as large platforms like Microsoft Azure. 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. Share of workloads in the cloud among organizations worldwide as of April 2021 [Graph]. Register in seconds and access exclusive features. This rapid level of growth and migration . The survey also posed to 600 medium to large organizations what percentage of infrastructure operations belonged to: On-premises legacy environments; Public cloud workloads; Private or hybrid cloud workloads This adoption has been trending for a reason, as there are many . 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. Digital transformation continues and IT spend keeps growing. Show publisher information 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. In an April 2020 survey of security professionals, 94% believed that the pandemic increases the level of cyberthreat. 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. The key measure for measuring the environmental intensiveness of cloud computing is power usage effectiveness (PUE), in which great strides have been made. Moving to special AI chips. Microsoft has already started rolling out its Windows 365 service, which offers virtual personal computers running Windows 10 or 11. 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. 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. The mainframe has been and will continue to be a mission-critical . 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. Weve seen two years of digital transformation in two months.Microsoft CEO Satya Nadella1. Respondents self-estimated that their organizations waste 32 percent of cloud spend, which is up from 30 percent last year. DTTL and each of its member firms are legally separate and independent entities. Looking at the global cloud market by region, North America is leading the race, with 61 percent of the market total in 2020. However, a workload should have defined boundaries regarding . See something interesting? Its time to revitalize, rebuild and reimagine the future. In Malaysia, the first mainframe, the IBM System/360, was introduced in 1964. Online Storage or Online Backup: What's The Difference? 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. On-premises data centers typically have fairly low server utilization rates. Public clouds are owned and operated by third-party service providers and are the most common. The changes that Gartner says are on the horizon will mean major shifts in the way the world does business over the next few years, the results of which Gartner said will be more than 85% of . As of 2020, roughly 41% of enterprise workloads were in the cloud. Eighty-two percent of all the smartphones in the world run on Linux. . (2021). 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. 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. Social login not available on Microsoft Edge browser at this time. With an average compound annual growth rate (CAGR) of 21 percent, this market is predicted to grow to $223.98 billion in revenue by 2028.15. 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. In calendar Q1 2020, they saw growth explode by 42% compared to the previous year. The second is that AI is making up a higher and higher percentage of cloud computing. We also asked survey respondents to name other key performance indicators they . Thirty-three percent reported spending $1.2 million or more on Google Cloud Platform. For complete survey results, download the Flexera 2022 State of the Cloud Report. 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 . To stay logged in, change your functional cookie settings. 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 . Prepandemic, cloud migration was already often complex. Its huge. Flexera cited as a leader by independent research firm for cloud cost management and optimization. 80 percent of the effort to migrate to the cloud comes from 20 percent of the workloads being moved. As stated by the industry publication SiliconANGLE: Because the big cloud players are so large, they are exposed to industries that have been hard-hit by the pandemic. Copy a customized link that shows your highlighted text. 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. In 2021, this is expected to increase by 23.1 percent to a staggering $332.3 billion. However, many other companies sell chips, storage, and connectivity solutions into the cloud space. As a result, we see pockets of spending deceleration even at these companies.14. 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. 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? 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. 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. Between mid-2012 and 2018, the cloud computing resources used by state-of-the-art AI grew by 300,000 times.40 Much of this can be attributed to the increasing use of a kind of AI called machine learningmore specifically, a subset of machine learning called deep learning. 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. Basically, the only difference is who owns the infrastructure. However, the truth is far less dramatic than this and mostly comes down to mistakes made by employees. 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. To compete in todays game, organizations must have the cloud play a role in their strategy. 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. "Share of workloads in the cloud among organizations worldwide as of April 2021." European Organizations Top Cloud Initiatives: 70% Migrating more workloads to the cloud, In the first quarter of 2021, cloud services infrastructure spending increased to $41.8 billion on a global level. The driving factors behind this increase can be attributed to a greater generation of large data sets, which in turn necessitates more file storage. Thats the basis of all cloud software, and one could argue thats how the internet works as a whole. 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. Cloud Workloads. This trend will persist well after the pandemic.23, One emerging development for hyperscale cloud providers is the intelligent edge. Africa is the smallest market region.5, The biggest market in the Asia-Pacific region, Chinas total cloud infrastructure spending was $11.5 billion in 2019, and it grew to $19 billion in 2020 a 66 percent increase.9, As we said, all of your favorite online videos are hosted on the cloud. Even though we understand what the cloud does, the way it works and how it is evolving is a far more complex subject. Cloud computing platforms include everything from cloud storage to streaming content. 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. As articulated by Healthcare IT News: While cloud computing better optimizes the use of resources in health care, it also creates significant risks. Improving special AI chips. Nobuo is active in the M&A domain and helps companies identify new business opportunities, restructuring capabilities and internationalizing their businesses in emerging countries. Methodology. 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. As of 2020, roughly 41% of enterprise workloads were in the cloud. We are independently owned and the opinions expressed here are our own. Clearly, hybrid cloud is the new normal. Cybersecurity Insiders, and Fortinet. That number has skyrocketed to 30% of organizations having at least 50% of . Cost governance systems can also help maintain control over expenses. So do nine of the top ten public clouds. . Cloud will no longer be considered a location just where data is stored and accessed, but rather an operating model. Consequently, several noteworthy cloud computing trends have emerged, so let us take a look at their impact and development. 33% TODAY NEXT 12-18 . container platforms, virtual machines) is also expected to . . Since all you need is an internet connection, cloud computing is super convenient for both business and personal use. The likely reason: increased demand driven by COVID-19, lockdowns, and work from anywhere. According to remote work statistics, approximately 34 percent of workers say that they prefer to work in the cloud and will look for a new job if they are required to return to the office.6, Employee Work Preferences: Remove vs In Office, In 2020, the combined end-user spending on cloud services totaled $270 billion. At the time of the study, the percentage of organizations with a cloud IT infrastructure revolved around the 45% mark. AWS holds the next largest percentage at 32%. SMBs run fewer and smaller workloads, so it stands to reason their cloud bills would also be lower. The intelligent edge places computing power, specifically AI computing power, not in centralized data centers but closer to the end user, typically less than 50 kilometers. 2023. (May 31, 2021). Faced with lockdowns, social distancing and similar measures, a large portion of the workforce needed to move online. But what about the network infrastructure underneath? 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. Please enable JavaScript to view the site. A simple process could often turn into a fog of conflicting goals, broken dependencies, and cost overruns. 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). Google Cloud Platform, Oracle Cloud Infrastructure and IBM Cloud round out the top five. Most businesses and remote workers depend on cloud-based technologies. By 2025, IT executives expect that 30% of business workloads will reside in the private cloud, while 28% will be in the public cloud. Total 2020 revenues are likely to exceed US$35 billion, and could top US$40 billion in 2021. Of course, cloud is not the only solution in play. 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. . 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. Sixty-two percent of respondents use more than one cloud provider, and the diversity of production workloads (e.g. This trend indicates its more critical than ever to get a handle on forecasting and cost optimization. Platform as a Service (PaaS) will grow by 26.1% in 2022. However, two factors suggest that this decline in growth could be less than expected. In fact, 76 percent measure their cloud progress according to cost efficiency and the savings they made thanks to cloud. There are three main types of cloud computing deployments: public cloud, private cloud and hybrid cloud. Founder Jeff Bezos attributes AWS enormous success to its seven-year head start before facing serious competition. Thanks to COVID-19 driving enterprises toward cloud, the cloud market will likely emerge from the pandemic stronger than ever. 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. As companies move more applications to the cloud, the cloud market is booming. 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. Michael also leads the GTM and cross-offering efforts within Consulting in North Region as Regional Consulting Leader. Several avenues exist to keep clouds rising energy needs under control: Improving overall transistor efficiency. Two megatrends account for much of cloud computings energy demands. 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. Get full access to all features within our Business Solutions. 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. , as well as large platforms like Microsoft Azure as recently as 2015 cloud! Development for hyperscale cloud providers is the intelligent Edge create an employee account to be to! 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