. Basically, the only difference is who owns the infrastructure. Please see, Telecommunications, Media & Entertainment, Go straight to smart. Traditional, non-cloud-enabled datacenter deployments were next, with 22% penetration . The eleventh annual Flexera 2022 State of the Cloud Report (previously known as the RightScale State of the Cloud Report) highlights the latest cloud computing trends, including strategies, challenges and initiatives from a broad cross-section of industries and organizations. . So do nine of the top ten public clouds. 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. You can only download this statistic as a Premium user. 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. Please do not hesitate to contact me. Azure has surpassed AWS for breadth of adoption for the first time. For complete survey results, download the Flexera 2022 State of the Cloud Report. 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. Just 3% of organizations saw 51-60% of workloads impacted based on the data from 2021. Cost governance systems can also help maintain control over expenses. This statistic offers a forecast of cloud workloads as a percentage of total data center workloads, from 2011 to 2021. Digital transformation continues and IT spend keeps growing. Michael also leads the GTM and cross-offering efforts within Consulting in North Region as Regional Consulting Leader. As of 2021, the very lucrative video streaming market is worth a combined $59.14 billion (read our streaming statistics guide to learn more). Over time, transistors keep getting smaller. See: Netflix. 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 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. These services include everything from simple cloud storage to cloud infrastructure platforms, like AWS. Based on market share, the largest cloud computing company in the world is Amazon Web Services. As soon as this statistic is updated, you will immediately be notified via e-mail. In recent years, this percentage has continued to increase. Because of this, 92 percent of organizations already have a multi-cloud strategy.4, Enterprises face many challenges, but three of the most prevalent issues include security (83 percent), managing cloud computing spending (82 percent) and governance (79 percent). 3. [2] According to European organizations, migrating more workloads to the cloud is the most important cloud initiative. Statistics On Cloud Service Providers. Gartner expects total worldwide end-user spending on public cloud services will reach a record $592 billion this year, a 21 percent increase from 2022. Organizations are increasingly utilizing PaaS services from cloud providers. And the siloed and disjointed approach of yesterday will no longer be effective in todays fast-evolving digital world. Cloud security is one of the biggest concerns for businesses. Online Storage or Online Backup: What's The Difference? 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 its shifting. 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. Postpandemic, all of these factors will likely be even more challenging. Patrick is the cloud leader for Deloitte Consulting LLPs Technology, Media, & Telecom industry practice, as well as the Technology sector. Thank you. Since all you need is an internet connection, cloud computing is super convenient for both business and personal use. The average business runs 38% of workloads in public and 41% in private cloud. 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. Most businesses and remote workers depend on cloud-based technologies. 2. By 2025, IT executives expect that 30% of business workloads will reside in the private cloud, while 28% will be in the public cloud. Accessed March 01, 2023. https://www.statista.com/statistics/1266602/workloads-cloud-organizations-worldwide/. Total 2020 revenues are likely to exceed US$35 billion, and could top US$40 billion in 2021. 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. Find out how. Workloads can also depend on other shared assets or larger platforms. Moving from CPUs to specialized AI chips improves AI power efficiency, but AI chip technology is not standing still either. Innovation, transformation, and leadership occur in many ways. Azure (80 percent running workloads) was the only provider to increase their adoption rate YoY. SMBs will leverage the agility provided by cloud to quickly deliver at scale on . The growth rate is projected to increase at a lower rate between the years 2021 . Defy status quo, build momentum, stimulate ideas., achieve ambitious goals. 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. However, not just any VPN will suffice check out our best VPN for Netflix and how to watch Disney+ outside the U.S. articles to find out which VPNs will do the trick (we also have a VPN statistics article). Second, in the longer term, the WFA forced experiment15 is being seen as a success by many workers and employers. [Online]. By 2021, 75 percent, compared with 16 percent for IaaS workloads and compute instances, down from 21 percent in 2016 . . 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 five largest hyperscale public cloud providers that disclose segmented revenues saw their combined revenues grow by 31% in 2019 to US$94 billion. Select highlights of the report are included below. 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. Cloud spend is a good indicator of how much an enterprise is using a public cloud provider. Register in seconds and access exclusive features. Moving to SaaS solutions eliminates the resources required to manage equivalent on-premises software packages. We test each product thoroughly and give high marks to only the very best. Please enable JavaScript to view the site. 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. 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. 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. Flexera cited as a leader by independent research firm for cloud cost management and optimization. Please see About Deloitteto learn more about our global network of member firms. 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. In calendar Q2, their revenues grew further to 51% year over year. Cybersecurity Insiders, & Fortinet. Hybrid clouds combine the advantages of public and private clouds. It is critical to disrupt your market without interrupting your business during the migration.26, Cloud, security, and COVID-19. If you are interested in finding out more about cloud security, we have an excellent article detailing cloud security measures for cloud storage services. One thing fueling the drive to the cloud is the explosion in SaaS workloads. 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. This takes into account video streaming behemoth Netflix, established services like HBO and relative newcomers such as Disney+. )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. The proliferation of cloud software, coupled with the disruption of 2020, has made the message loud and clear for organizations: digitize or die. Eighty-two percent of all the smartphones in the world run on Linux. Thanks to COVID-19 driving enterprises toward cloud, the cloud market will likely emerge from the pandemic stronger than ever. 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 . Thats the basis of all cloud software, and one could argue thats how the internet works as a whole. As of 2020, roughly 41% of enterprise workloads were in the cloud. 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. Growth in cloud computing has been a megatrend over the last decade, with the market experiencing triple-digit annual growth as recently as 2015. "Share of Workloads in The Cloud among Organizations Worldwide as of April 2021. First, to paraphrase Spider-Man, With great growth comes great capital expenditures. Higher-than-expected growth is good news, but to keep up with it, cloud providers will likely need to spend more on capex. 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 . Google Cloud Platform showed the highest percentage of experimentation (23 percent), which tends to drive more adoption in the future. 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. Data and IT security (74%), regulatory reporting (57%), and fraud detection and prevention (57%) rank among the highest workload adoption. Balancing on-premises and cloud workloads On-Premises vs. We strive to eventually have every article on the site fact checked. 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. But even though many organizations will retain at least some on-premise resources, and even in current economic conditions, cloud providers have much to look forward to as migration to the cloud accelerates. 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. As companies move more applications to the cloud, the cloud market is booming. 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. Thirty-three percent reported spending $1.2 million or more on Google Cloud Platform. Fifty-two percent spend $1.2 million or more annually on AWS. Sixty-two percent of respondents use more than one cloud provider, and the diversity of production workloads (e.g. 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. Its time to revitalize, rebuild and reimagine the future. The three largest semiconductor companies that disclose segmented data center sales saw their combined revenues grow by only 3% in 2019 to just under US$30 billion. Hybrid cloud - this is when a company uses both a public and a private cloud. 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. 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. 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. Cloud gaming works similarly to streaming services; rather than installing a video game on your computer, you can stream it to your display instead. 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. Now, on to the reason you opened this article in the first place those amazing cloud computing technology statistics themselves. Thats not all SaaS processes will account for 75 percent of the total workload. In its Q4 2022 results, total revenue fell to $452 million, down 5 percent on a year earlier. Cloud data centers will process 94 percent of all workloads in 2021. 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. This market draws on more than just cloud, but cloud is a critical enabler. What is your opinion on cloud computing? Consequently, several noteworthy cloud computing trends have emerged, so let us take a look at their impact and development. 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. With 34 percent, men are twice as likely to fall for phishing scams compared to women (17 percent).11. DTTL and each of its member firms are legally separate and independent entities. In an April 2020 survey of security professionals, 94% believed that the pandemic increases the level of cyberthreat. The cloud. What was once a trendy, science fictionsounding buzzword has become an inescapable part of our everyday personal and professional lives. Even though growth among the largest hyperscale public cloud providers had declined to only 31% annually by the end of 2019, and this rate had been projected to (slowly) decline further in 2020 and 2021 as the industry matures, growth in cloud continued to outpace that in many other sectors. Nominations are now open for our 2022 ranking! 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. 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. 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. As of mid-2020, there were 541 hyperscale data centers globally, with 26 added in the first half of 2020 and another 176 planned over the next few years.8 All of these data centers need chips. Naturally, remote desktop software followed suit. 70% of companies using the cloud plan to increase their budgets in the future. A cloud workload is essentially a resource or service consuming computing power in the cloud. 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. 26 Cloud Computing Statistics, Facts & Trends for 2023. 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. Many pundits as well as organizations, such as the World Economic Forum34 and the OECD,35 have called for a green reset following COVID-19. See Terms of Use for more information. Get the latest insights in cloud computing trends and cloud migration statistics. [2] After applying for a job in this country, you can access/update your candidate profile at any time. By some metrics, the cloud market grew even faster in 2020 than in 2019, even during the steepest economic contraction in modern history. Only about 10 large public hyperscale cloud providers and chip companies break out their cloud revenues on a quarterly basis in detail. You need a Statista Account for unlimited access. 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. Access to this and all other statistics on 80,000 topics from, Show sources information AWS holds the next largest percentage at 32%. More than 70% of companies have now migrated at least some workloads into the public cloud, according to Gartner research. 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. Microsoft has already started rolling out its Windows 365 service, which offers virtual personal computers running Windows 10 or 11. To conduct a cost-benefit analysis, companies can use a cloud value calculator to evaluate the gaps between the current state and potential future opportunities. Initially, all AI computing took place on general-purpose central processing unit (CPU) chips. Cloud-first policies and cloud migration are top of mind for senior IT leaders, particularly in enterprise environments. 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 . That's not all SaaS processes will account for 75 percent of the . 57% of businesses will migrate their workloads to the cloud in 2022. Those observations track with the results of the Fortinet survey. Weve already mentioned that remote work rose to great prominence during 2020 and it seems like it is here to stay. Additionally, 82% of the workload will reside on the cloud. Simply select text and choose how to share it: Email a customized link that shows your highlighted text. In the past decade, deep learning has become more widely used in the cloud, offering tremendous new functionality. Companies that have shifted their offerings to an XaaS model have already experienced considerable success with both consumers and investors, challenging conventional valuations and placing pressure on industry players that are retaining traditional business models such as perpetual licensing and long-term contracts.20. Cloud Computing's Catch-22. This is because companies can't afford to run out of server capacity. One way that hyperscalers can deal with both data transfer and app development is through partnerships.25. 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. 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. 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. This is followed by optimizing current cloud use to cut down on costs (59 percent) and advancing a cloud-first strategy (50 percent).4. It is projected that this market will grow to more than $76 billion in 2021. 80 percent of business impact from an outage will come from 20 percent of the systems affected by the outage. Time Machine vs Arq vs Duplicati vs Cloudberry Backup. Gen Zs and millennials are striving for balance and advocating for change. He has also served on the board of the Colorado Technology Association. 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. As multiple enterprises shifted rapidly to cloud during the pandemic, some saw costs balloon. With a CAGR of 26.2 percent for the 2021 to 2028 period, it will balloon to more than $390 billion by 2028. 10 Over the same timeframe, overall internet traffic grew by 38%, meaning that cloud traffic, measured by the absolute number of bits per day, . 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. Additionally, investment isnt needed just for capex. Public clouds are owned and operated by third-party service providers and are the most common. In, Cybersecurity Insiders, und Fortinet. Simply put, cloud computing is all about using the internet to connect to online services hosted on the cloud. The likely reason: increased demand driven by COVID-19, lockdowns, and work from anywhere. 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. 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. As the leader of Deloitte China Cloud Practice as well as Tech Strategy practice, Michael provides Tech Strategy, Cloud and Digital Transformation service to many large organizations covering industries like Consumer Product, Retail, Energy &Resource, Industry Products, FSI, etc. 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. Please create an employee account to be able to mark statistics as favorites. Cloud Workloads. When sizing the market for public cloud, it is therefore important to understand what percentage of total enterprise workloads are in the public cloud (vs. elsewhere). The first is obvious: if overall use of the cloud doubles, then, all other things being equal, energy use doubles as well. See something interesting? Cloud adoption was already expanding for several years and has been accelerated by the pandemic. "Share of workloads in the cloud among organizations worldwide as of April 2021." This type of software includes remote desktop tools such as TeamViewer and Chrome Remote Desktop, which allow you to connect to a remote computer and work on it via a remote internet connection.27. 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. Moving to the cloud is a critical business initiative for many organizations. . As a result, enterprises are rapidly increasing public cloud spend and workload volumes. 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. Amazon Web Services (AWS) had an 80% share of the enterprise cloud adoption in 2022. 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. 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. 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. 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. statistic alerts) please log in with your personal account. This growth is expected as more organizations migrate their IT workloads to the cloud. DTTL (also referred to as Deloitte Global) does not provide services to clients.
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