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. However, she said, 81 percent of customers reported the repatriation of workloads from public clouds to on-premises private cloud, hosted private cloud, or on-premises non-cloud infrastructures, a . This momentum will continue as companies plan to increase their cloud adoption in the wake of COVID-19.. 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. Michael also leads the GTM and cross-offering efforts within Consulting in North Region as Regional Consulting Leader. 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 number of public cloud users who utilize service beyond basic compute, storage and network services continues to grow. Looking at the global cloud market by region, North America is leading the race, with 61 percent of the market total in 2020. Two megatrends account for much of cloud computings energy demands. (2021). 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. 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. 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. To get access to all of your favorite shows, you will need to use a VPN. He is the lead researcher on semiconductor topics for the US TMT Center and for Deloitte Global. Visit the cloud economics webpage today. 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. 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. Cybersecurity Insiders, Fortinet. This is followed by optimizing current cloud use to cut down on costs (59 percent) and advancing a cloud-first strategy (50 percent).4. 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. Gen Zs and millennials are striving for balance and advocating for change. 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. Please see About Deloitteto learn more about our global network of member firms. Platform as a Service (PaaS) will grow by 26.1% in 2022. 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. 2. So do nine of the top ten public clouds. 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 . (LogicMonitor, 2020) Meanwhile, 20% of businesses spend over $12 million on public cloud annually. Innovation, transformation, and leadership occur in many ways. Register in seconds and access exclusive features. 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. Find out how. 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. Another goal for cloud providers is to develop vertical-specific apps that must reside at the edge due to latency requirements and other factors. Crucial issues such as security, compliance and location mean that many enterprises can't simply move data or workloads into the public cloud. So look . Currently a managing partner in the Japanese firm, Nobuo brings over 25 years of experience in technology and management consulting focusing on the electronics industry. Although growth declined to 18% in calendar Q3, this still works out to a 36% increase in the first nine months of 2020. This statistic offers a forecast of cloud workloads as a percentage of total data center workloads, from 2011 to 2021. In 2021, this is expected to increase by 23.1 percent to a staggering $332.3 billion. Copy a customized link that shows your highlighted text. 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. The percentage of cloud-based application software expenditures will rise from 57.7% in 2022 to 65.9% in 2025. 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. Additionally, 82% of the workload will reside on the cloud. Please create an employee account to be able to mark statistics as favorites. Go straight to smart with daily updates on your mobile device, See what's happening this week and the impact on your business. The hyperscalers still offer remarkably good value for ad-hoc cloud infrastructure needs where the workload is highly variable or high-growth. 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. Based on market share, the largest cloud computing company in the world is Amazon Web Services. Flexera One is a Digital Platform Conductorbut whats that? Criteria for which workloads move to cloud. Cloud will no longer be considered a location just where data is stored and accessed, but rather an operating model. Azure pricing as of 30 October 2018 (prices subject to change). [2] According to European organizations, migrating more workloads to the cloud is the most important cloud initiative. Private cloud-only usage also rose during the past year, albeit slightly, from about 23% in 2020 to 25% in 2021. 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. 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. 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. While that could be true, new research from Synergy . In 2020, the global cloud gaming market was worth $470 million. Moving to special AI chips. This allowed AWS to evolve at a more leisurely pace and to develop more functionalities. The likely reason: increased demand driven by COVID-19, lockdowns, and work from anywhere. The virtual computer can be streamed to any device you choose, which promises to bring a revolution in cloud computing, if everything works as planned. 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. In, Cybersecurity Insiders, und Fortinet. "It's fundamental to computing.". Select highlights of the report are included below. Machine learning forms the basis of many cloud technologies today, and a lot of organizations and systems use it to automate various processes. 2023. As a Premium user you get access to background information and details about the release of this statistic. Highlights include: 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. 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. 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. Digital transformation continues and IT spend keeps growing. As a result, more than 40 zettabytes of data will be flowing through cloud servers and networks. Despite widespread tech spending weakness in calendar Q1 2020, revenues grew by 31% over the same period in the previous year. By comparison, only 25 percent of all the computing data was stored this way in 2015. Are you interested in testing our business solutions? First, although lockdowns are unlikely to be as uniform as they were earlier in 2020, flareups in the pandemic and more-localized lockdowns are still driving WFA and cloud growth. Moving from CPUs to specialized AI chips improves AI power efficiency, but AI chip technology is not standing still either. 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. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. The key measure for measuring the environmental intensiveness of cloud computing is power usage effectiveness (PUE), in which great strides have been made. 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. Hybrid cloud - this is when a company uses both a public and a private cloud. 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. . As multiple enterprises shifted rapidly to cloud during the pandemic, some saw costs balloon. Well be looking at 26 of the most interesting, relevant and game-changing stats all across the industry, from cloud adoption rates and security concerns, to enterprise infrastructure, cloud computing spending and much more. Azure (80 percent running workloads) was the only provider to increase their adoption rate YoY. 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. 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. Respondents self-estimated that their organizations waste 32 percent of cloud spend, which is up from 30 percent last year. SMBs will leverage the agility provided by cloud to quickly deliver at scale on . Of financial services companies currently using a majority cloud strategy in the United States, for example, only half (54%) of their workloads are fully deployed in the cloud. Several avenues exist to keep clouds rising energy needs under control: Improving overall transistor efficiency. As just one example, the health care industry, which has been among the fastest to shift to cloud during the pandemic, will likely increase its exposure to new vulnerabilities, especially if the migration is not done properly. 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). 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. Workloads can support more than one process. 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. To use individual functions (e.g., mark statistics as favourites, set Today, a state-of-the-art 10-nanometer (nm) semiconductor device fabrication node is about 2030 times more power-efficient than a 90-nm node from 15 years ago.42 Over time, we expect data center chips to keep becoming still more efficient. In recent years, this percentage has continued to increase. He has also served on the board of the Colorado Technology Association. ", 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. Michael also lead the Strategic Alliance with digital giants including AWS, Alibaba, Huawei, etc. We are independently owned and the opinions expressed here are our own. 80 percent of business impact from an outage will come from 20 percent of the systems affected by the outage. Flexera cited as a leader by independent research firm for cloud cost management and optimization. DTTL and each of its member firms are legally separate and independent entities. A multi-cloud strategy revolves around utilizing multiple cloud service providers such as Google Cloud or AWS. 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. On-premise versus cloud workload. Microsoft has already started rolling out its Windows 365 service, which offers virtual personal computers running Windows 10 or 11. Hybrid cloud can take many forms, such as a combination of private with public cloud or public cloud with on-premise resources,2 but all offer the benefits of multiple deployment models. In that regard, cloud computing can help, not hinder, progress toward a more sustainable future. 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. A quarter (25%) of respondents cited private cloud as their most commonly used deployment model, the highest percentage after multicloud (36%). By 2024, in contrast, more than 1.5 billion devices will have dedicated edge AI chips (called neural processing units, or NPUs) in them by 2023.46 These NPUs, mainly used for inference, will likely reduce the demand for energy over time: They tend to be more efficient than the chips in data centers, and they eliminate the need to send large data files up to the cloud, which consumes more energy. Business owners lament the fact that around 30 percent of their cloud budget goes to waste. 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. In calendar Q2, their revenues grew further to 51% year over year. 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. If you are an admin, please authenticate by logging in again. Methodology. . Cloud security is one of the biggest concerns for businesses. In the same year, the total global data storage will exceed 200 zettabytes of data, meaning that around half of it will be stored in the cloud. Based on limited data, it appears that the Chinese cloud market grew faster than the ROW hyperscale market through September 2020, and we would predict that decoupling would continue, if not increase.18, Finally, it is worth noting that in addition to the pandemic, the move to cloud has a long-running tailwind in terms of demand. We hope that you have found these cloud computing stats and trends both interesting and fun. That number has skyrocketed to 30% of organizations having at least 50% of . Cloud tools have . Check out the latest blogs related to Cloud Management below. Let us know if you liked the post. This means tackling three major challenges: 1. A multi-cloud approach is still the de facto standard among organizations. Longer term, as growth returns to historical rates, it seems likely, based on the history of technology, that market concentration will increase again. Balancing on-premises and cloud workloads On-Premises vs. 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. 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). The COVID-19 pandemic profoundly affected many aspects of our lives, and work was no exception. Much of this data is stored on cloud file storage solutions, so to help you out with picking the safest ones, weve compiled a list of cloud storage services with the best security and privacy. This is especially true when cloud adoption happens faster than proper due diligence can be applied by information security personnel. 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 . Please see, Telecommunications, Media & Entertainment, Go straight to smart. 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. One way that hyperscalers can deal with both data transfer and app development is through partnerships.25. Workload operations should . Their advantages are better control and privacy, as well as increased flexibility.28. If you are interested in finding out more about cloud security, we have an excellent article detailing cloud security measures for cloud storage services. 80 percent of the effort to migrate to the cloud comes from 20 percent of the workloads being moved. 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. In 2019, the remote desktop software market was worth $1.53 billion and it is estimated that it will reach $4.69 billion by 2027 at a CAGR of 15.1 percent. 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. How many cloud services and apps do you use? 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. So with the same energy, we are managing . 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. Chip technology is not standing still either the hyperscalers still offer remarkably value! Infrastructure needs where the workload is highly variable or high-growth leadership occur in many ways was worth $ 470.. We hope that you have found these cloud computing can help, not,! To all of your favorite shows, you will need to use a.. Millennials are striving for balance and advocating for change better control and privacy, as well as increased flexibility.28 favorites... 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