Cloud data centers will process 94 percent of all workloads in 2021. Consequently, several noteworthy cloud computing trends have emerged, so let us take a look at their impact and development. Second, in the longer term, the WFA forced experiment15 is being seen as a success by many workers and employers. . Two megatrends account for much of cloud computings energy demands. Copy a customized link that shows your highlighted text. 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. (2021). Gartner surveys indicate that when cloud migrations are complete, an average of 30 percent of the digital infrastructure remains on-premises. Improving special AI chips. It is projected that this market will grow to more than $76 billion in 2021. assuming that the current market of $157 billion reflects 15% of workloads in the cloud, with the end state being approximately 75%. The ability to solve complex issues is critical. Since all you need is an internet connection, cloud computing is super convenient for both business and personal use. A lot of data is currently in the cloud, and by 2025 it will reach 100 zettabytes. Databases (50 percent), file storage (45 percent) and application services (43 percent) were also cited as reasons for remaining partially on-premises. Flexible consumption models, also known as everything (or anything) as a service or XaaS, have become an increasingly important strategic shift for enterprises across all industries. If you are an admin, please authenticate by logging in again. 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. 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. Please see, Telecommunications, Media & Entertainment, Go straight to smart. Cloud providers can take several steps to support their continued growth. 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. More than 70% of companies have now migrated at least some workloads into the public cloud, according to Gartner research. Cloud adoption was already expanding for several years and has been accelerated by the pandemic. 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. But I have one question though, in the diagram of part5, how is the data calculated, or measured? In its Q4 2022 results, total revenue fell to $452 million, down 5 percent on a year earlier. Balancing on-premises and cloud workloads On-Premises vs. Moving to special AI chips. 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. This total market size of $400 billion is then broken down by workload type. We test each product thoroughly and give high marks to only the very best. As always, thank you for reading. Its huge. You need at least a Starter Account to use this feature. For the complete survey results, download the free Flexera 2022 State of the Cloud Report. Basically, the only difference is who owns the infrastructure. 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. 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). Statista. 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. Workloads can support more than one process. 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. Digital transformation continues and IT spend keeps growing. For computational environments, a workload is an expression of an ongoing effort of an application AND what is being requested of it. As organizations move more workloads to the cloud, they can retire the technical debt . Weve put together a list of 26 of the most interesting, relevant and revealing cloud computing statistics that demonstrate how big the cloud is and how its predicted to evolve. Cybersecurity Insiders, Fortinet. 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. However, cloud computing makes data governance much easier, with tools such as the excellent EFSS, Egnyte.12, This is the fifth year in a row that cloud cost optimization is a top priority, with 61 percent of organizations planning to optimize their cloud costs in 2021. Sixty-two percent of respondents use more than one cloud provider, and the diversity of production workloads (e.g. 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. Naturally, remote desktop software followed suit. At the time of the study, the percentage of organizations with a cloud IT infrastructure revolved around the 45% mark. DTTL and each of its member firms are legally separate and independent entities. By comparison, only 25 percent of all the computing data was stored this way in 2015. With a CAGR of 26.2 percent for the 2021 to 2028 period, it will balloon to more than $390 billion by 2028. In calendar Q2, growth showed a 25% year-over-year increase, which rose slightly to 27% in calendar Q3, resulting in a 28% growth rate over the first nine months of the year. 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. ", 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. Platform as a Service (PaaS) will grow by 26.1% in 2022. May 31, 2021. 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. There are good reasons to believe the 15% . 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. Otherwise, it's the same thing. 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. Eighty-two percent of all the smartphones in the world run on Linux. Share of workloads in the cloud among organizations worldwide as of April 2021 [Graph]. [2] 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. Plus, Linux also has 62 percent of the embedded market share, and 99 percent of the supercomputer market share. 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). In 88 percent of cases, human error is to blame for cloud breaches, not cloud providers. 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. 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? "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. 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. If you are interested in learning more about these terms, we invite you to read our cloud terminologies article, which explains how they function in greater detail. WORKLOADS IN THE CLOUD What percentage of your workloads are in the cloud today compared to how it will be in the next 12-18 months? While this unprecedented growth can, in large part, be attributed to the pandemic, this industry was on a healthy upward trajectory long before 2020.26, Global Cloud Storage Market in Billions USD, 2017-2028. Longer term, as growth returns to historical rates, it seems likely, based on the history of technology, that market concentration will increase again. What is your opinion on cloud computing? A . As articulated by Healthcare IT News: While cloud computing better optimizes the use of resources in health care, it also creates significant risks. Thats the only way we can improve. 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. Faced with lockdowns, social distancing and similar measures, a large portion of the workforce needed to move online. 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. See: Netflix. 80 percent of business impact from an outage will come from 20 percent of the systems affected by the outage. 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. Its time to revitalize, rebuild and reimagine the future. In, Cybersecurity Insiders, und Fortinet. Additionally, 82% of the workload will reside on the cloud. Patrick is the cloud leader for Deloitte Consulting LLPs Technology, Media, & Telecom industry practice, as well as the Technology sector. 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. Use Ask Statista Research Service, The source phrased the question as follows: "What percentage of your workloads are in the cloud today compared to how it will be in the next 12-18 months? The number of public cloud users who utilize service beyond basic compute, storage and network services continues to grow. On-premise workloads are predicted to shrink from 37% today to 27% of . 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. 3. Simply put, cloud computing is all about using the internet to connect to online services hosted on the cloud. 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. Online Storage or Online Backup: What's The Difference? Private cloud-only usage also rose during the past year, albeit slightly, from about 23% in 2020 to 25% in 2021. Postpandemic, all of these factors will likely be even more challenging. 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. To stay logged in, change your functional cookie settings. 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. This momentum will continue as companies plan to increase their cloud adoption in the wake of COVID-19.. These servers host data that you can access via an internet connection. However, the truth is far less dramatic than this and mostly comes down to mistakes made by employees. Depending on where you live, you may not be able to stream all the TV shows and movies you like. DTTL (also referred to as Deloitte Global) does not provide services to clients. Deloitte analysis of publicly reported quarterly financial statements. Workload operations should . In fact, 76 percent measure their cloud progress according to cost efficiency and the savings they made thanks to cloud. The COVID-19 pandemic profoundly affected many aspects of our lives, and work was no exception. 33% TODAY NEXT 12-18 . Please create an employee account to be able to mark statistics as favorites. 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. Gen Zs and millennials are striving for balance and advocating for change. Thanks to COVID-19 driving enterprises toward cloud, the cloud market will likely emerge from the pandemic stronger than ever. Get full access to all features within our Business Solutions. This growth is expected as more organizations migrate their IT workloads to the cloud. 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. A paid subscription is required for full access. AWS holds the next largest percentage at 32%. 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. 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. 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%. For example, google drive has a 94.4% rate, I just wonder how this number came out. Statistics On Cloud Service Providers. Thank you for sharing this great article! 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. You need a Statista Account for unlimited access. On top of these concerns, COVID-19 has created an unprecedented wake-up call. Most businesses and remote workers depend on cloud-based technologies. 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. 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. Cloud data centers will process 94 percent of all workloads in 2021. The mainframe has been and will continue to be a mission-critical . Access to this and all other statistics on 80,000 topics from, Show sources information Flexera cited as a leader by independent research firm for cloud cost management and optimization. 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. 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. [2] 70% Migrating more workloads to the cloud 59% Optimizing cloud use to cut costs 50% Advancing a cloud. 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 . And I think I can squeeze another five percent. By 2025, Gartner estimates that over 95% of new digital workloads will be deployed on cloud-native platforms, up from 30% in 2021. 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. 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 . In 2017, the global cloud storage market was worth around $30 billion and it steadily rose to more than $61 billion in 2020. The second is that AI is making up a higher and higher percentage of cloud computing. 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). 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. Get the latest insights in cloud computing trends and cloud migration statistics by downloading the Flexera 2022 State of the Cloud Report. 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. 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. Thank you. Highlights include: 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. The bottom line: while cloud security is paramount for any organization regardless of size, proper employee training and strict security guidelines are just as important. However, two factors suggest that this decline in growth could be less than expected. Please see About Deloitteto learn more about our global network of member firms. An additional 20% are predicted to be private-cloud-based followed by another 22% running on hybrid cloud platforms by 2020. 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. Get the latest insights in cloud computing trends and cloud migration statistics. The likely reason: increased demand driven by COVID-19, lockdowns, and work from anywhere. 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. 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. Of course, cloud is not the only solution in play. We strive to eventually have every article on the site fact checked. 7. Only about 10 large public hyperscale cloud providers and chip companies break out their cloud revenues on a quarterly basis in detail. 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. Wake of COVID-19 using the internet to connect to online services hosted on the,. By 2020 gartner research the latest insights in cloud computing trends and cloud migration statistics more. Account to use this feature to special AI chips Backup: what 's the difference organizations move more to... A quarter said that the increased threat is critical and imminent online storage or online Backup: 's. Data calculated, or measured longer term, the truth is far less dramatic than this and mostly down... To mistakes made by employees workloads ( e.g with a cloud several steps to support continued... Only difference is who owns the infrastructure provider, and the savings they made to. 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By employees $ 390 billion by 2028 you need at least some workloads into the public cloud users utilize! Is not the only difference is who owns the infrastructure will continue as plan.