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. By 2020, the percentage of workloads in the cloud is expected to be 83%, the latest cloud computing statistics reveal. So in data centers, normally IT infrastructure is used on average at 40%. )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. 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. Moving to the cloud is a critical business initiative for many organizations. 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. 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. Cloud will no longer be considered a location just where data is stored and accessed, but rather an operating model. But Zoho's example, along with others who have chosen to . By 2025, 85% of enterprises will have a cloud-first principle, according to Gartner. Social login not available on Microsoft Edge browser at this time. 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 . This trend indicates its more critical than ever to get a handle on forecasting and cost optimization. Faced with lockdowns, social distancing and similar measures, a large portion of the workforce needed to move online. Thats the basis of all cloud software, and one could argue thats how the internet works as a whole. Based on market share, the largest cloud computing company in the world is Amazon Web Services. Workloads can also depend on other shared assets or larger platforms. However, the truth is far less dramatic than this and mostly comes down to mistakes made by employees. Consequently, the cloud infrastructure of a private cloud (the physical servers that host the private cloud) is maintained by that organization. 2023. You can tell that an article is fact checked with the Facts checked by symbol, and you can also see whichCloudwards.netteam member personally verified the facts within the article. So look . 7. Eighty-two percent of all the smartphones in the world run on Linux. On-premise workloads are predicted to shrink from 37% today to 27% of . Joshi said companies moving apps out of the cloud typically do so after finding that they're experiencing latency issues or increased security and compliance challenges. In calendar Q1 2020, they saw growth explode by 42% compared to the previous year. 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. 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. Weve seen two years of digital transformation in two months.Microsoft CEO Satya Nadella1. 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. The hyperscalers still offer remarkably good value for ad-hoc cloud infrastructure needs where the workload is highly variable or high-growth. 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. Growth in cloud computing has been a megatrend over the last decade, with the market experiencing triple-digit annual growth as recently as 2015. What was once considered science fiction could soon become reality. A lot of data is currently in the cloud, and by 2025 it will reach 100 zettabytes. In 2020, the global cloud computing market was valued at $371.4 billion, and it is estimated that by 2025 it will rise to a staggering $832.1 billion. He has also served on the board of the Colorado Technology Association. Please create an employee account to be able to mark statistics as favorites. Azure (80 percent running workloads) was the only provider to increase their adoption rate YoY. DTTL and each of its member firms are legally separate and independent entities. 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. After applying for a job in this country, you can access/update your candidate profile at any time. 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. "It's fundamental to computing.". In recent years, this percentage has continued to increase. 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. Thank you for sharing this great article! . . 2020, global cloud traffic as a percentage of total internet traffic rose from 1.26% to 1.83%, up by 45%. Please see About Deloitteto learn more about our global network of member firms. 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. It would have not been surprising to see cloud spending go down a few points in 2020, given the spending reduction in multiple areas driven by the COVID-19 pandemic and the associated global recession. These 26 cloud computing statistics are great indicators where the cloud service market is headed. This means that while overall growth is strong, it is not uniform. By 2025, Gartner estimates that over 95% of new digital workloads will be deployed on cloud-native platforms, up from 30% in 2021. 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. 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. DTTL (also referred to as Deloitte Global) does not provide services to clients. SMBs run fewer and smaller workloads, so it stands to reason their cloud bills would also be lower. In 2020, the global cloud gaming market was worth $470 million. 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. 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 organizations move more workloads to the cloud, they can retire the technical debt associated with maintaining and operating traditional data centers. 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. As soon as this statistic is updated, you will immediately be notified via e-mail. 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. In calendar Q2, their revenues grew further to 51% year over year. As always, thank you for reading. Weve already mentioned that remote work rose to great prominence during 2020 and it seems like it is here to stay. container platforms, virtual machines) is also expected to . 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. For computational environments, a workload is an expression of an ongoing effort of an application AND what is being requested of it. Cloud tools have . Of course, cloud is not the only solution in play. Once again, optimizing the existing use of the cloud (cost savings) is the top initiative reported among organizations, followed by migrating more workloads to the cloud. In that regard, cloud computing can help, not hinder, progress toward a more sustainable future. 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. Thats not all SaaS processes will account for 75 percent of the total workload. The market in the first half of 2019 was about US$40 billion larger than in the first half of 2018, while the market in the first half of 2020 was about US$50 billion larger than in the first half of 2019. SMBs run fewer and smaller workloads, so it stands to reason their cloud bills would also be lower. A simple process could often turn into a fog of conflicting goals, broken dependencies, and cost overruns. 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. What we refer to as the cloud actually exists as a physical network of servers. 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. What exactly is a cloud workload? Your email address will not be published. . 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. 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. The driving factors behind this increase can be attributed to a greater generation of large data sets, which in turn necessitates more file storage. Michael also leads the GTM and cross-offering efforts within Consulting in North Region as Regional Consulting Leader. Tell us what you think in the comments below. In the context of a cloud adoption, a workload is a collection of IT assets (servers, VMs, applications, data, or appliances) that collectively support a defined process. Go straight to smart with daily updates on your mobile device, See what's happening this week and the impact on your business. Machine learning forms the basis of many cloud technologies today, and a lot of organizations and systems use it to automate various processes. In 88 percent of cases, human error is to blame for cloud breaches, not cloud providers. The increasing use of public cloud is driving up cloud spend for organizations of all sizes, and public cloud spend is now a significant line item in IT budgets. 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. . 2. assuming that the current market of $157 billion reflects 15% of workloads in the cloud, with the end state being approximately 75%. [2] Statistics On Cloud Service Providers. 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. 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. Postpandemic, all of these factors will likely be even more challenging. Workloads can support more than one process. Cloud-first policies and cloud migration are top of mind for senior IT leaders, particularly in enterprise environments. Even a single application could be tied to multiple business processes, affecting vendors, balance sheets, and regulatory compliance, and different stakeholders could have different motives and expectations from the migration. 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