At one time, almost all AI was performed on the cloud, as edge devices such as smartphones, cameras, sensors, and robots lacked the onboard processing capacity for complex AI. Survey respondents ranked data warehouse, relational database as a service (DBaaS) and container-as-a-service (CaaS) in the top three. to incorporate the statistic into your presentation at any time. While that could be true, new research from Synergy . 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. As a Premium user you get access to background information and details about the release of this statistic. The proliferation of cloud software, coupled with the disruption of 2020, has made the message loud and clear for organizations: digitize or die. As companies move more applications to the cloud, the cloud market is booming. The mainframe has been and will continue to be a mission-critical . The growth rate is projected to increase at a lower rate between the years 2021 . The first is obvious: if overall use of the cloud doubles, then, all other things being equal, energy use doubles as well. In 2017, the global cloud storage market was worth around $30 billion and it steadily rose to more than $61 billion in 2020. Its huge. 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. 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. 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. DTTL and each of its member firms are legally separate and independent entities. 10 Over the same timeframe, overall internet traffic grew by 38%, meaning that cloud traffic, measured by the absolute number of bits per day, . Another goal for cloud providers is to develop vertical-specific apps that must reside at the edge due to latency requirements and other factors. 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. 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. Although the growth in cloud in the first nine months of 2020 was very high, many forecasts expected it to slow to some extent in subsequent quarters. Those observations track with the results of the Fortinet survey. Of course, cloud is not the only solution in play. Michael also leads the GTM and cross-offering efforts within Consulting in North Region as Regional Consulting Leader. 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. In 2017, cloud workloads represented 86 percent of all data . . When viewed at the total company level, very few systems will be only on-premise, only public cloud, or only private cloud. 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. Cloud Customers Consume 77% Fewer Servers Let's first look at server utilization and the number of servers required to support a given group of workloads. 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. 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. On-premises data centers typically have fairly low server utilization rates. "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. This could be a web service, application server, database server, or any other business process. 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. Basically, the only difference is who owns the infrastructure. Cloud data centers will process 94 percent of all workloads in 2021. Additionally, investment isnt needed just for capex. Improving special AI chips. 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. 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. If you are looking to make your cloud migration process a lot easier and even automate it to a great extent, we invite you to check out our list of the best cloud-to-cloud management services. Founder Jeff Bezos attributes AWS enormous success to its seven-year head start before facing serious competition. 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. (May 31, 2021). 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. "Share of workloads in the cloud among organizations worldwide as of April 2021." 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. Data Disk IOPS Consumed Percentage and Data Disk Bandwidth Consumed Percentage; At the VM level: VM Cached IOPS . A multi-cloud approach is still the de facto standard among organizations. May 23, 2022. The cloud. What was once a trendy, science fictionsounding buzzword has become an inescapable part of our everyday personal and professional lives. The appropriately named Citadel is the largest data center ever constructed, and is located in Tahoe Reno, Nevada. 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. 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). Prepandemic, cloud migration was already often complex. SMBs run fewer and smaller workloads, so it stands to reason their cloud bills would also be lower. Cloud spend is a good indicator of how much an enterprise is using a public cloud provider. 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. He is the lead researcher on semiconductor topics for the US TMT Center and for Deloitte Global. So in data centers, normally IT infrastructure is used on average at 40%. The cloud workloads summary breaks down cloud approaches used by respondents like this: Public cloud: 40 percent; On-premises legacy: 31 percent; Private/hybrid cloud: 29 percent; The most popular workloads across all three approaches are: databases, analytics and web/content hosting, as shown here: Just . 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. As a result, enterprises are rapidly increasing public cloud spend and workload volumes. Moving to special AI chips. We are independently owned and the opinions expressed here are our own. Cloudwards.net may earn a small commission from some purchases made through our site. Growth in cloud computing has been a megatrend over the last decade, with the market experiencing triple-digit annual growth as recently as 2015. 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. ", 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. Their advantages are better control and privacy, as well as increased flexibility.28. 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. Longer term, as growth returns to historical rates, it seems likely, based on the history of technology, that market concentration will increase again. Please see About Deloitteto learn more about our global network of member firms. The key measure for measuring the environmental intensiveness of cloud computing is power usage effectiveness (PUE), in which great strides have been made. 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. Unique workload needs. May 31, 2021. See Terms of Use for more information. Initially, all AI computing took place on general-purpose central processing unit (CPU) chips. 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. IT Visibility, IT Asset Management, Cloud Management. The COVID-19 pandemic profoundly affected many aspects of our lives, and work was no exception. It is reported that 82% of the workload will reside on the cloud ; Amazon web services have the largest cloud computing market share at 32%. 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. 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 soon as this statistic is updated, you will immediately be notified via e-mail. 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. Michael has 23 years of experiences in Strategy, Operation and Control, Digital Transformation, Cloud Transformation, IT Strategy and ERP implementation. Let us know if you liked the post. The cloud computing market is projected to grow way bigger in just the next five years. 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. He has also served on the board of the Colorado Technology Association. 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. Workloads can also depend on other shared assets or larger platforms. By some metrics, the cloud market grew even faster in 2020 than in 2019, even during the steepest economic contraction in modern history. "It's fundamental to computing.". In calendar Q1 2020, they saw growth explode by 42% compared to the previous year. 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. As the operating model changes, the organization will turn to a product-orientated operating model where the entire value stream of the business and IT will have to be aligned by products. Yet even as enterprises embrace the many benefits of the cloud, managing the cost of cloud computing is an ongoing challenge. 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. 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. However, a workload should have defined boundaries regarding . "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. Copy a customized link that shows your highlighted text. Compared to the same period in 2020, this was a 35 percent year-on-year growth and a five percent quarter-on-quarter rise. 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. One way that hyperscalers can deal with both data transfer and app development is through partnerships.25. Plus, Linux also has 62 percent of the embedded market share, and 99 percent of the supercomputer market share. It is critical to disrupt your market without interrupting your business during the migration.26, Cloud, security, and COVID-19. Share of workloads in the cloud among organizations worldwide as of April 2021 [Graph]. As articulated by Healthcare IT News: While cloud computing better optimizes the use of resources in health care, it also creates significant risks. The intelligent edge is not a replacement for enterprise and hyperscale cloud data centers, but a way to distribute tasks across the network to increase timeliness, connectivity, and security.24 In the intelligent edge model, much of the data that used to always go to the data center doesnt go there anymore, and hyperscale providers should make sure this data finds its way back to centralized clouds for analysis and AI trainingand ensure that theyre not cut out of access to this data. Apply. 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. Beena Ammanath, Susanne Hupfer, and David Jarvis. 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. 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. Patrick is the cloud leader for Deloitte Consulting LLPs Technology, Media, & Telecom industry practice, as well as the Technology sector. According to a deep-packet inspection report on network traffic during the period from February 1 to April 19, 2020, global cloud traffic as a percentage of total internet traffic rose from 1.26% to 1.83%, up by 45%.10 Over the same timeframe, overall internet traffic grew by 38%, meaning that cloud traffic, measured by the absolute number of bits per day, rose by almost exactly 100%. Duncan Stewart is the director of research for the technology, media, and telecommunications (TMT) industry for Deloitte Canada. Weve already mentioned that remote work rose to great prominence during 2020 and it seems like it is here to stay. [2] 70% Migrating more workloads to the cloud 59% Optimizing cloud use to cut costs 50% Advancing a cloud. Almost a quarter said that the increased threat is critical and imminent. Only 15% believed that the cyberthreat will return to previous levels postpandemic, while five out of six believed that the new threat level is permanent.27, Cloud costs and benefits. Cloud data centers will process 94 percent of all workloads in 2021. 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. Time Machine vs Arq vs Duplicati vs Cloudberry Backup. This is because companies can't afford to run out of server capacity. 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). Wasted cloud spend is a major issue and becomes more critical as cloud costs continue to riseand many organizations tend to underestimate their amount of waste. Machine learning forms the basis of many cloud technologies today, and a lot of organizations and systems use it to automate various processes. In, Cybersecurity Insiders, und Fortinet. Highlights include: Forrester's Infrastructure Cloud Survey 2022 reveals that cloud decision-makers have implemented containerized applications that account for half of the total workloads in their organizations. According to the report, 52% of those who moved workloads from the cloud back on premises said either . 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 includes cloud storage providers like Sync.com and pCloud, as well as large platforms like Microsoft Azure. 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. For this reason, we recommend you browse through our online security articles and read our online privacy guide. See something interesting? A quarter (25%) of respondents cited private cloud as their most commonly used deployment model, the highest percentage after multicloud (36%). . Accessed March 01, 2023. https://www.statista.com/statistics/1266602/workloads-cloud-organizations-worldwide/. In an April 2020 survey of security professionals, 94% believed that the pandemic increases the level of cyberthreat. 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. . By 2020, the percentage of workloads in the cloud is expected to be 83%, the latest cloud computing statistics reveal. 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. Additionally, 82% of the workload will reside on the cloud. DTTL (also referred to as Deloitte Global) does not provide services to clients. Innovation, transformation, and leadership occur in many ways. 2. The second is that AI is making up a higher and higher percentage of cloud computing. Instead, the cloud market has been remarkably resilient. More than 50 percent of the executives surveyed rely heavily on financial metrics principally, cost and ROI to determine the path to success for their cloud initiatives. Gen Zs and millennials are striving for balance and advocating for change. So do nine of the top ten public clouds. 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). [2] However, many other companies sell chips, storage, and connectivity solutions into the cloud space. Take control of cloud use with out-of-the-box and customized policies to automate cost governance, operations, security and compliance. This means tackling three major challenges: 1. Traditional, non-cloud-enabled datacenter deployments were next, with 22% penetration . Organizations are moving to the cloud because of its scalability, economy and reachand theyre using a variety of metrics to measure its resulting business value. That's not all SaaS processes will account for 75 percent of the . In recent years, this percentage has continued to increase. Two megatrends account for much of cloud computings energy demands. The cloud migration forecast: Cloudy with a chance of clouds has been saved, The cloud migration forecast: Cloudy with a chance of clouds has been removed, An Article Titled The cloud migration forecast: Cloudy with a chance of clouds already exists in Saved items. 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 . Then you can access your favorite statistics via the star in the header. 1The 72 percent saving is based on one M32ts Azure VM for Windows OS in US Gov Virginia region running for 36 months at a Pay as You Go rate of ~$3,660.81 per month; reduced rate for a three year Reserved Instance of ~$663.45 per month. With a CAGR of 26.2 percent for the 2021 to 2028 period, it will balloon to more than $390 billion by 2028. For change of our everyday personal and professional lives enterprise is using a public cloud and... 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Is projected to grow way bigger in just the next five years Disk. 50 % Advancing a cloud warehouse, relational database as a Premium you. Of April 2021 [ Graph ] Strategy, Operation and control, Digital Transformation, and COVID-19 making... 2021 [ Graph ] was no exception and each of its member firms articles and read our online privacy....