This is just one type of artificial intelligence, and it is no wonder that companies are looking into ways to invest in and expand this field.17. As a result, enterprises are rapidly increasing public cloud spend and workload volumes. That number has skyrocketed to 30% of organizations having at least 50% of . By some metrics, the cloud market grew even faster in 2020 than in 2019, even during the steepest economic contraction in modern history. 71% of enterprises look for speed improvements, 63% . However, 53 percent of SMBs spend more than $1.2 millionup from 38 percent last year. 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. We also asked survey respondents to name other key performance indicators they . Instead, the cloud market has been remarkably resilient. Take control of cloud use with out-of-the-box and customized policies to automate cost governance, operations, security and compliance. 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. However, many other companies sell chips, storage, and connectivity solutions into the cloud space. The key measure for measuring the environmental intensiveness of cloud computing is power usage effectiveness (PUE), in which great strides have been made. The likely reason: increased demand driven by COVID-19, lockdowns, and work from anywhere. We strive to eventually have every article on the site fact checked. 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. 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. 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. . IT Visibility, IT Asset Management, Cloud Management. This total market size of $400 billion is then broken down by workload type. One thing fueling the drive to the cloud is the explosion in SaaS workloads. 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. . 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. Gartner surveys indicate that when cloud migrations are complete, an average of 30 percent of the digital infrastructure remains on-premises. Cloud adoption was already expanding for several years and has been accelerated by the pandemic. (Flexera, 2020) Source: ITCandor. 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. 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. So look . 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. 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. By 2022, the adoption of cloud technologies by other countries will fall behind the US by several years. 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%. Cloud providers can take several steps to support their continued growth. 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. 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. The number of public cloud users who utilize service beyond basic compute, storage and network services continues to grow. As a result, more than 40 zettabytes of data will be flowing through cloud servers and networks. Most enterprises have, on average, only about 20-40 percent 2 of their workloads in the cloud, most of which are the easier, less complex ones. The respondentsglobal cloud decision makers and usersrevealed their experiences with cloud migration, cloud computing, and their insights about the public, private and multi-cloud market. Platform as a Service (PaaS) will grow by 26.1% in 2022. To use individual functions (e.g., mark statistics as favourites, set Consequently, several noteworthy cloud computing trends have emerged, so let us take a look at their impact and development. Find out how. Patrick lives with his wife and daughter in Denver, where they are active in the community and enjoy the Colorado outdoors. The changes that Gartner says are on the horizon will mean major shifts in the way the world does business over the next few years, the results of which Gartner said will be more than 85% of . DTTL and each of its member firms are legally separate and independent entities. 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. 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. Your email address will not be published. On-premises data centers typically have fairly low server utilization rates. 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. Hybrid clouds combine the advantages of public and private clouds. 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 . 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. He is the lead researcher on semiconductor topics for the US TMT Center and for Deloitte Global. Cloud Computing's Catch-22. To get access to all of your favorite shows, you will need to use a VPN. "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. Azure has surpassed AWS for breadth of adoption for the first time. Available: https://www.statista.com/statistics/1266602/workloads-cloud-organizations-worldwide/, Share of workloads in the cloud among organizations worldwide as of April 2021, Available to download in PNG, PDF, XLS format, Cloud computing worldwide revenue 2015-2022, by segment, Public IT cloud services global market growth 2011-2023, Public cloud services growth worldwide 2022 and 2023, by segment, Global cloud IT infrastructure spending 2013-2026, Public cloud application infrastructure services market 2015-2023, Public cloud business process services market size 2015-2023, Platform as a Service (PaaS) spending by segment worldwide 2016-2022, Communications Platform as a Service market size worldwide 2015-2025, Global current and planned cloud models 2020-2025, by deployment model, IaaS and PaaS revenue by vendor in 2018-2022, Global cloud IaaS/PaaS vendor revenue share 2018-2021, Market share of public cloud IaaS, SISaaS & PaaS vendors worldwide 2019-2020, Leading cloud provider for cloud on-ramps in data centers worldwide 2020, by region, Microsoft's intelligent cloud revenue worldwide 2015-2023, by quarter, IBM cloud & cognitive software revenue worldwide 2018-2020, by subsegment, Enterprise public cloud platform and infrastructure service usage worldwide 2017-2022, Public cloud platform usage and adoption worldwide 2022, by service provider, Private cloud platform service usage worldwide 2017-2022, Private cloud platform service adoption worldwide 2022, by service provider, 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 worldwide 2017, Cloud data center workloads from 2016 to 2021 in Central and Eastern Europe, Platforms where workloads would run now and in the future 2017, Cloud data center workloads from 2016 to 2021 in Western Europe, Installed cloud workloads worldwide 2015-2021, by cloud type, Cloud workloads as a percentage global cloud data center workloads 2011-2021, Personal cloud storage traffic growth worldwide 2015-2020, Leading cloud services and workloads deployed globally 2016, Installed cloud workload share worldwide 2015-2021, by cloud type, Global cloud data center IP traffic 2015-2021, Cloud computing penetration among large enterprises in France 2014, by industry, Obstacles to cloud computing among small-sized enterprises France 2014, Email services penetration among companies using cloud computing in France 2014, Obstacles to cloud computing among medium-sized enterprises France 2014, Enterprises using cloud storage services in France 2014-2016, Database hosting among entrerpises using cloud computing in France 2014, by industry, Find your information in our database containing over 20,000 reports. 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. 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. For complete survey results, download the Flexera 2022 State of the Cloud Report. For their part, cloud users should consider the following factors as they continue to migrate to cloud: The cloud migration strategy. Initially, all AI computing took place on general-purpose central processing unit (CPU) chips. [2] In recent years, this percentage has continued to increase. Defy status quo, build momentum, stimulate ideas., achieve ambitious goals. What we refer to as the cloud actually exists as a physical network of servers. Although these companies are not necessarily providing detailed quarterly numbers, their commentary has been in line with those that do release exact numbers. 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. Postpandemic, all of these factors will likely be even more challenging. Its huge. This trend will persist well after the pandemic.23, One emerging development for hyperscale cloud providers is the intelligent edge. Michael also lead the Strategic Alliance with digital giants including AWS, Alibaba, Huawei, etc. 80 percent of business impact from an outage will come from 20 percent of the systems affected by the outage. [Online]. In calendar Q1 2020, they saw growth explode by 42% compared to the previous year. Statista. Cloud data centers will process 94 percent of all workloads in 2021. 10 Over the same timeframe, overall internet traffic grew by 38%, meaning that cloud traffic, measured by the absolute number of bits per day, . DTTL (also referred to as Deloitte Global) does not provide services to clients. 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. 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. 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. 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. 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