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Cloud Computing Adoption in 2020
According to a report from Forrester cloud adoption meant to accelerate and change the enterprise landscape entirely, transforming the cloud from being “a place to get some cheap servers or storage, to being shorthand for how companies turn amazing ideas into winning software – faster.” This statement fits perfectly with AllCloud’s finding that 85% of organizations expect to have the majority of their workloads on the cloud by 2020.
A study from Flexera 2020, in which a total of 750 global cloud decision-makers and users about the public, private and multi-cloud market participated from around the globe, also confirms that Cloud spend is rising as organizations adopt multi-cloud strategies and put more workloads and data in the cloud.
According to the AllCloud study more than 70% of IT professionals said half their companies’ IT workloads are in the cloud now, 85% expect to have the majority of their workloads on the cloud by 2020, and more than 23% will be cloud-only.
Here below are the highlight of the report on how organizations are progressing in their journey to cloud. It’s important to know that the survey began in the first quarter of 2020 = during the early phase of COVID19.
Multi-Cloud success within Enterprise:
Many organizations silo applications within a given public or private cloud, with 41% integrating data between clouds. 93% of enterprises have a multi-cloud strategy and 87 % have a hybrid cloud strategy. Only 33% of all participating organizations use multi-cloud management tools. Respondents use an average of 2.2 public and 2.2 private clouds.
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Public Cloud adoption within Enterprise:
20% of participating enterprises spend more than $12 million per year on public clouds. The top three public cloud providers remain AWS, Azure and Google. Azure is narrowing the gap with AWS in both the percentage of enterprises using it and the number of virtual machines (VMs) enterprises are running in it. 40% of enterprise AWS users spend at least $1.2 million annually versus 36% for Azure More than 50% of enterprise workloads and data are expected to be in a public cloud within 12 months. 59% of respondents who answered a question about COVID-19 expect cloud use to exceed plans due to the pandemic. The top challenge in cloud migration is understanding application dependencies.
Top Challenges of Cloud adoption:
83% of enterprises indicate that security is a challenge, followed by 82% for managing cloud spend and 79% for governance. For cloud beginners, lack of resources/expertise is the top challenge; for advanced cloud users, managing cloud spending is the top challenge. Organizations are over budget for cloud spend by an average of 23% and expect cloud spend to increase by 47% next year. 56% of organizations reported that understanding cost implications of software licenses is a challenge of software in the cloud. Organizations aren’t taking advantage of all cloud provider discounting options, but are beginning to leverage automated policies to shut down workloads after hours (51%) and rightsize instances (49%).
Source:
Flexera 2020 State of the Cloud Report
All Cloud : 2020 Cloud Infrastructure Report