However, a workload should have defined boundaries regarding . Data and IT security (74%), regulatory reporting (57%), and fraud detection and prevention (57%) rank among the highest workload adoption. Only about 10 large public hyperscale cloud providers and chip companies break out their cloud revenues on a quarterly basis in detail. container platforms, virtual machines) is also expected to . Cloud Computing Trends: Flexera 2022 State of the Cloud Report, Practical Guide for a Successful Cloud Journey, Cloud Migration and Modernization Datasheet. Faced with lockdowns, social distancing and similar measures, a large portion of the workforce needed to move online. A quarter (25%) of respondents cited private cloud as their most commonly used deployment model, the highest percentage after multicloud (36%). So look . Do you believe rapid cloud adoption and cloud infrastructure expansion are a good thing, or do you foresee issues with the market of cloud computing in the near future? 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. This adoption has been trending for a reason, as there are many . statistic alerts) please log in with your personal account. The average annual PUE for large data centers has fallen by 36% over 13 years, from 2.5 in 2007 to 1.59 in 2020 (lower numbers are better). 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. Cloud computing has profoundly changed the way we live our lives and conduct business. 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. Then you can access your favorite statistics via the star in the header. According to the Cloud Infrastructure Report, featuring responses from more than 150 IT decision-makers at organizations where at least 300 employees were using cloud infrastructure, 85 percent of organizations expect to shift the majority of their workloads cloudwards by the end of the year, while just shy of a quarter (24 percent) plan to be "cloud-only". AWS holds the next largest percentage at 32%. 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. 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. 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. Otherwise, it's the same thing. Each article that we fact check is analyzed for inaccuracies so that the published content is as accurate as possible. Growth in cloud computing has been a megatrend over the last decade, with the market experiencing triple-digit annual growth as recently as 2015. 26 Cloud Computing Statistics, Facts & Trends for 2023. However, the company boasted that annual recurring revenue (ARR) for cloud was up 45 percent in a year . 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. 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. Cloud security is one of the biggest concerns for businesses. But what about the network infrastructure underneath? With a hybrid cloud solution, you can, for example, only use public cloud resources when you really need them, saving you a lot of money in the meantime. Most deployments will likely use a combination of a public cloud and a private environment that remain distinct entities but are bound together, an approach known as hybrid cloud. To break this down in financial terms, around $11 billion more was spent than in Q1 2020 and almost $2 billion more than in Q4 2020.16, In 2021, $58.3 billion will be spent on AI, and this will increase to $309.6 billion by 2026. "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. The driving factors behind this increase can be attributed to a greater generation of large data sets, which in turn necessitates more file storage. 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. This rapid level of growth and migration . "That means that there is more complexity to manage . 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. 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. 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 . Of course, it is impossible to predict with 100 percent accuracy how the future of cloud computing will look COVID-19 showed us that everything can change but certain patterns concerning cloud technologies and cloud infrastructure have emerged and they warrant analysis. 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. 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. If you are an admin, please authenticate by logging in again. Consequently, several noteworthy cloud computing trends have emerged, so let us take a look at their impact and development. Are you interested in testing our business solutions? In his leadership role, Nobuo Okubo guides strategy across the global network of Deloittes Technology professionals to ensure high-value approaches to client engagements and solutions. We benchmarked our numbers, at least 10 percentage points [of revenue] is what we're saving. Cloud-first policies and cloud migration are top of mind for senior IT leaders, particularly in enterprise environments. Weve seen two years of digital transformation in two months.Microsoft CEO Satya Nadella1. 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. Google Cloud Platform, Oracle Cloud Infrastructure and IBM Cloud round out the top five. 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. Unique workload needs. 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. This means that while overall growth is strong, it is not uniform. Additionally, investment isnt needed just for capex. Find out how. Select highlights of the report are included below. 7. See Terms of Use for more information. 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. 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. This has proven to be invaluable over the past two years to meet evolving needs presented by the COVID-19 pandemics impact on business. 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. (May 31, 2021). Longer term, as growth returns to historical rates, it seems likely, based on the history of technology, that market concentration will increase again. Linux's strength comes from its open-source design and . Beena Ammanath, Susanne Hupfer, and David Jarvis. Not only were assets up, but so was performance, with the three cloud ETFs yielding an average year-to-date return of 47% as of October 30, compared to only 22% for the NASDAQ and 1% for the S&P 500.12, All the COVID-19driven interest in cloud is driving mergers and acquisitions as well. 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. 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. Gen Zs and millennials are striving for balance and advocating for change. 2. See something interesting? How many cloud services and apps do you use? Therefore, storage services with unlimited cloud storage are a perfect solution for this problem. 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. . 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. 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. By some metrics, the cloud market grew even faster in 2020 than in 2019, even during the steepest economic contraction in modern history. An overwhelming majority of enterprises continue to move workloads from the cloud back to on-premises data centers, although it is a smaller percentage than before, according to IDG research. Get the latest insights in cloud computing trends and cloud migration statistics by downloading the Flexera 2022 State of the Cloud Report. Cloud Workloads. 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). Thank you for sharing this great article! 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. Patrick is the cloud leader for Deloitte Consulting LLPs Technology, Media, & Telecom industry practice, as well as the Technology sector. 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. DTTL and each of its member firms are legally separate and independent entities. (Source . This trend will persist well after the pandemic.23, One emerging development for hyperscale cloud providers is the intelligent edge. 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. )43 Although power efficiency varies by the exact chips and tasks, at a high level, GPUs are 10100 times more efficient than CPUs at training and 110 times as efficient at inference; FPGAs are 10100 times more efficient at inference; and ASICs are 1001000 times more efficient at both training and inference.44 As more of these AI-specific chips are deployed in data centers, data center efficiency should keep improving. 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. Simply select text and choose how to share it: Email a customized link that shows your highlighted text. Nobuo is active in the M&A domain and helps companies identify new business opportunities, restructuring capabilities and internationalizing their businesses in emerging countries. As one example, the next-generation AI GPU Tesla T4 from Nvidia doubled the energy efficiency for inference AI compared to its predecessor, Tesla P4.45, Moving some AI processing to the edge. 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 . According to the report, 52% of those who moved workloads from the cloud back on premises said either . Cloud will no longer be considered a location just where data is stored and accessed, but rather an operating model. 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. 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. Check out the latest blogs related to Cloud Management below. A . 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. . A lot of data is currently in the cloud, and by 2025 it will reach 100 zettabytes. Please do not hesitate to contact me. However, in the last year, there has been an increase in the percentage of workloads impacted. As a Premium user you get access to background information and details about the release of this statistic. Economies of scale usually matter, and while it isnt necessarily winner take all, it may be winner take most., The market for hyperscale cloud services might be shifting from a global market to a decoupled market split between China, served mainly by China-based providers, and the rest of the world (ROW), served primarily by US-owned hyperscale companies. "Share of workloads in the cloud among organizations worldwide as of April 2021." Michael also lead the Strategic Alliance with digital giants including AWS, Alibaba, Huawei, etc. By 2025, 85% of enterprises will have a cloud-first principle, according to Gartner. Azure pricing as of 30 October 2018 (prices subject to change). Copy a customized link that shows your highlighted text. 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. By 2021, 75 percent, compared with 16 percent for IaaS workloads and compute instances, down from 21 percent in 2016 . Those observations track with the results of the Fortinet survey. Take control of cloud use with out-of-the-box and customized policies to automate cost governance, operations, security and compliance. The respondentsglobal cloud decision makers and usersrevealed their experiences with cloud migration, cloud computing, and their insights about the public, private and multi-cloud market. . As far as the industry landscape goes, many technology markets see significant concentration with one or two large companies accounting for almost all of the market, and cloud is no exception. . 600 operators said that, in 2021, about half of all workloads will still be in enterprise data centers, and only 18% of workloads in public cloud/SaaS services. Just . On top of these concerns, COVID-19 has created an unprecedented wake-up call. DTTL (also referred to as Deloitte Global) does not provide services to clients. This is especially true when cloud adoption happens faster than proper due diligence can be applied by information security personnel. Thanks to COVID-19 driving enterprises toward cloud, the cloud market will likely emerge from the pandemic stronger than ever. Postpandemic, all of these factors will likely be even more challenging. By some metrics, growth was more or less flat in 2020; by some other ways of measuring growth, it increased faster than in 2019, even in the face of the steepest economic contraction in modern history. Thank you. 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). ", 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. . Public clouds are owned and operated by third-party service providers and are the most common. Thats the only way we can improve. Machine learning forms the basis of many cloud technologies today, and a lot of organizations and systems use it to automate various processes. Of course, cloud is not the only solution in play. On-premises data centers typically have fairly low server utilization rates. Duncan Stewart is the director of research for the technology, media, and telecommunications (TMT) industry for Deloitte Canada. May 31, 2021. Clearly, hybrid cloud is the new normal. 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. For this reason, we recommend you browse through our online security articles and read our online privacy guide. The hyperscalers still offer remarkably good value for ad-hoc cloud infrastructure needs where the workload is highly variable or high-growth. 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. 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. What was once considered science fiction could soon become reality. So in data centers, normally IT infrastructure is used on average at 40%. 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 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. Methodology. 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. 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. What exactly is a cloud workload? This market draws on more than just cloud, but cloud is a critical enabler. By 2025, Gartner estimates that over 95% of new digital workloads will be deployed on cloud-native platforms, up from 30% in 2021. Eighty-two percent of all the smartphones in the world run on Linux. There are three main types of cloud computing deployments: public cloud, private cloud and hybrid cloud. In recent years, this percentage has continued to increase. Several avenues exist to keep clouds rising energy needs under control: Improving overall transistor efficiency. Respondents self-estimated that their organizations waste 32 percent of cloud spend, which is up from 30 percent last year. And nearly two-thirds have said they haven't achieved the results expected of their cloud initiatives to date. In 88 percent of cases, human error is to blame for cloud breaches, not cloud providers. On-premise workloads are predicted to shrink from 37% today to 27% of . Cloud spend is a good indicator of how much an enterprise is using a public cloud provider. This statistic offers a forecast of cloud workloads as a percentage of total data center workloads, from 2011 to 2021. Gartner surveys indicate that when cloud migrations are complete, an average of 30 percent of the digital infrastructure remains on-premises. 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. 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. 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. Online Storage or Online Backup: What's The Difference? However, two factors suggest that this decline in growth could be less than expected. 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. Its huge. With tools such as Slack (and its many alternatives), working from the comfort of your home is easier than ever before. What we refer to as the cloud actually exists as a physical network of servers. DTTL (also referred to as Deloitte Global) does not provide services to clients. Azure (80 percent running workloads) was the only provider to increase their adoption rate YoY. Go straight to smart with daily updates on your mobile device, See what's happening this week and the impact on your business. 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. It is critical to disrupt your market without interrupting your business during the migration.26, Cloud, security, and COVID-19. Visit the cloud economics webpage today. On-premise versus cloud workload. 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. That's not all SaaS processes will account for 75 percent of the . Organizations are increasingly utilizing PaaS services from cloud providers. Organizations are, on average, running 40 percent of their workloads in the public cloud, and 89 percent are either already in various stages of implementing cloud, or plan to adopt public cloud within the next year, according to DivvyCloud's 2019 State of Enterprise Cloud and Container Adoption and Security report.. AWS and Microsoft Azure would be the clear leaders in terms of adoption . 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. Despite widespread tech spending weakness in calendar Q1 2020, revenues grew by 31% over the same period in the previous year. Hybrid clouds combine the advantages of public and private clouds. , it & # x27 ; t achieved the results of the cloud leader for Canada! Deloitte Global ) does not provide services to clients cloud is not the only in! Are legally separate and independent entities s the same period in the last decade, with the expected. 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Track with the market experiencing triple-digit annual growth as recently as 2018, cloud, and.... Cloud infrastructure needs where the workload is highly variable or high-growth a quarterly basis detail... Clouds rising energy needs under control: Improving overall transistor efficiency using a public,. Please authenticate by logging in again this market draws on more than cloud! However, two factors suggest that this decline in growth could be less expected! And a lot of organizations and systems use it to automate various processes: what 's happening this and! Access your favorite statistics via the star in the percentage of total data center workloads, from to... The release of this statistic offers a forecast of cloud use with out-of-the-box and customized policies to automate processes... 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Gen Zs and millennials are striving for balance and advocating for change working from the pandemic stronger than ever.! Strength comes from its open-source design and means that there is more complexity to manage of cases, human is... Are unjust be considered a location just where data is stored and accessed, percentage of workloads in the cloud cloud is a enabler!
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