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. Workloads can also depend on other shared assets or larger platforms. Get the latest insights in cloud computing trends and cloud migration statistics by downloading the Flexera 2022 State of the Cloud Report. SMBs run fewer and smaller workloads, so it stands to reason their cloud bills would also be lower. Cloud Workloads. Thats three times the size of the second largest market, Western Europe, which has 21 percent of the market total. It is critical to disrupt your market without interrupting your business during the migration.26, Cloud, security, and COVID-19. Nobuo is active in the M&A domain and helps companies identify new business opportunities, restructuring capabilities and internationalizing their businesses in emerging countries. Azure has surpassed AWS for breadth of adoption for the first time. This takes into account video streaming behemoth Netflix, established services like HBO and relative newcomers such as Disney+. Are you interested in testing our business solutions? 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). Digital transformation continues and IT spend keeps growing. Growth in cloud computing has been a megatrend over the last decade, with the market experiencing triple-digit annual growth as recently as 2015. 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. 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. Linux's strength comes from its open-source design and . Most businesses and remote workers depend on cloud-based technologies. . Show publisher information 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. Michael also lead the Strategic Alliance with digital giants including AWS, Alibaba, Huawei, etc. 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. 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. On-premises data centers typically have fairly low server utilization rates. Initially, all AI computing took place on general-purpose central processing unit (CPU) chips. The hyperscalers still offer remarkably good value for ad-hoc cloud infrastructure needs where the workload is highly variable or high-growth. By 2025, IT executives expect that 30% of business workloads will reside in the private cloud, while 28% will be in the public cloud. 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. Private cloud-only usage also rose during the past year, albeit slightly, from about 23% in 2020 to 25% in 2021. Consequently, several noteworthy cloud computing trends have emerged, so let us take a look at their impact and development. As organizations move more workloads to the cloud, they can retire the technical debt associated with maintaining and operating traditional data centers. But as a post-pandemic world begins to take shape, new trends in cloud usage are beginning to take shape. 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. Several avenues exist to keep clouds rising energy needs under control: Improving overall transistor efficiency. DTTL and each of its member firms are legally separate and independent entities. 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: 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. Time Machine vs Arq vs Duplicati vs Cloudberry Backup. Access to this and all other statistics on 80,000 topics from, Show sources information 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. SMBs run fewer and smaller workloads, so it stands to reason their cloud bills would also be lower. The appropriately named Citadel is the largest data center ever constructed, and is located in Tahoe Reno, Nevada. Patrick lives with his wife and daughter in Denver, where they are active in the community and enjoy the Colorado outdoors. In an April 2020 survey of security professionals, 94% believed that the pandemic increases the level of cyberthreat. A . [2]. Please enable JavaScript to view the site. 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. In 2021, this is expected to increase by 23.1 percent to a staggering $332.3 billion. 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. Simply put, cloud computing is all about using the internet to connect to online services hosted on the cloud. Worldwide, most financial services companies are using some form of cloud technology, with 83% reporting they are using the technology as part of their computer infrastructure, according to a new Harris Poll released by Google Cloud.. Financial service institutions in North America are leading the way in cloud adoption, with 54% in the U.S. saying they use the technology, followed by 52% in . 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 . Crucial issues such as security, compliance and location mean that many enterprises can't simply move data or workloads into the public cloud. Criteria for which workloads move to cloud. This adoption has been trending for a reason, as there are many . The cloud can have benefits like slashed IT costs, more flexibility, and increased efficiency. For computational environments, a workload is an expression of an ongoing effort of an application AND what is being requested of it. Deloitte analysis of publicly reported quarterly financial statements. 600 operators said that, in 2021, about half of all workloads will still be in enterprise data centers, and only 18% of workloads in public cloud/SaaS services. 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. The ability to solve complex issues is critical. Get full access to all features within our Business Solutions. 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. Sixty-eight percent of the CIOs ranked migrating to the public cloud and/or expanding private cloud as the top IT spending driver in 2020, up 20 points from a similar survey only six months earlier. Cloud computing has profoundly changed the way we live our lives and conduct business. 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. There are good reasons to believe the 15% . 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. [Online]. That's not all SaaS processes will account for 75 percent of the . A paid subscription is required for full access. As always, thank you for reading. Second, in the longer term, the WFA forced experiment15 is being seen as a success by many workers and employers. Furthermore, 56 percent of all public cloud-based workloads are considered IT production workloads, while the remaining 44 percent are classified as non-production workloads (i.e., test . Platform as a Service (PaaS) will grow by 26.1% in 2022. 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. But I have one question though, in the diagram of part5, how is the data calculated, or measured? DTTL (also referred to as Deloitte Global) does not provide services to clients. There are three main types of cloud computing deployments: public cloud, private cloud and hybrid cloud. Africa is the smallest market region.5, The biggest market in the Asia-Pacific region, Chinas total cloud infrastructure spending was $11.5 billion in 2019, and it grew to $19 billion in 2020 a 66 percent increase.9, As we said, all of your favorite online videos are hosted on the cloud. 80 percent of the effort to migrate to the cloud comes from 20 percent of the workloads being moved. This way, if one of the services is unavailable for whatever reason, the organization can switch to a working backup for disaster recovery. 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. With tools such as Slack (and its many alternatives), working from the comfort of your home is easier than ever before. Workload operations should . In 2017, the global cloud storage market was worth around $30 billion and it steadily rose to more than $61 billion in 2020. Basically, the only difference is who owns the infrastructure. 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. 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. Please see About Deloitteto learn more about our global network of member firms. 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. 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. In the past decade, deep learning has become more widely used in the cloud, offering tremendous new functionality. Find out how. (LogicMonitor, 2020) Meanwhile, 20% of businesses spend over $12 million on public cloud annually. Global Technology, Media & Telecom Industry Leader, Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (DTTL), its network of member firms, and their related entities. "It's fundamental to computing.". Otherwise, it's the same thing. (May 31, 2021). [2] 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. For this reason, we recommend you browse through our online security articles and read our online privacy guide. According to the Cloud Infrastructure Report, featuring responses from more than 150 IT decision-makers at organizations where at least 300 employees were using cloud infrastructure, 85 percent of organizations expect to shift the majority of their workloads cloudwards by the end of the year, while just shy of a quarter (24 percent) plan to be "cloud-only". 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