Study finds more organizations migrating applications from clouds back to on-premises
Hybrid clouds are the future, with more enterprises moving some workloads back on-premises from the public cloud and planning to shift more of their investments to hybrid cloud infrastructures, according to a recent report from Nutanix.
The Lowdown: The cloud and hyperconverged infrastructure software maker’s second Enterprise Cloud Index survey found that 85% of 2,650 IT decision-makers around the world said their ideal operating model is hybrid cloud. The report echoes what other tech companies and industry analysts have found, including market research firm Forrester, which has said that 74% of enterprises say they have a hybrid cloud strategy in place.
The Details: Enterprises initially saw the public cloud as a significant opportunity to save on upfront capital expenses, but that view has evolved over time as their experience with the cloud – and their cloud options – grew. Many found that some workloads – such as applications with unpredictable usage – were best suited for the cloud, but others with more predictable usage could run in on-premises environments at costs lower than in the public cloud, according to the report. In addition, organizations get the most value from the cloud when they’re able to match each application with the best cloud environment.
The key findings in the report include:
> Bringing applications back on-premises: 73% of survey respondents said they’re moving some applications from public clouds, with 22% saying they’re moving five or more applications. In addition, 95% said it’s essential or desirable to be able to easily move applications between clouds.
> Security is the top factor: 60% of respondents said their future cloud deployments would most significantly be impacted by the state of security among clouds. Data security and compliance, at 26%, was the top factor for enterprises when deciding where to run a workload.
> Hybrid clouds are most secure: 28% said the hybrid cloud model was the most secure of their IT operating model options, compared with 21% who said an on-premises private cloud model was best. Only 13% said private data centers were most secure. Nutanix said one reason for these numbers may be that, with the cloud, enterprises can pick the right cloud environment for their security needs.
> Not everyone is in the cloud: 23.5% of enterprises aren’t using any cloud technologies right now. However, the percentage of those with no cloud deployments will drop to 6.5% within a year and to 3% in two years, based on plans laid out by survey respondents.
> Mixing cloud and digital transformation: 72% of respondents said their push for digital transformation was informing their cloud efforts and 64% said digital transformation was their top business priority.
The Impact: Hybrid clouds continue to be a focus of many in the tech industry. The top public cloud service providers are all looking to leverage the trend toward hybrid clouds, with Amazon Web Services running out their Outposts systems designed to run in customer data centers and Microsoft’s Azure Stack offerings that can run not only on servers in on-premises environments but also – with Azure Arc – on rival cloud infrastructures. Google Cloud is approaching this with Anthos, which enables Google cloud services to run on-premises.
The Buzz: “As organizations continue to grapple with complex digital transformation initiatives, flexibility and security are critical components to enable seamless and reliable cloud adoption,” Nutanix CIO Wendy M. Pfeiffer said. “The enterprise has progressed in its understanding and adoption of hybrid cloud, but there is still work to do when it comes to reaping all of its benefits. In the next few years, we’ll see businesses rethinking how to best utilize hybrid cloud, including hiring for hybrid computing skills and reskilling IT teams to keep up with emerging technologies.”
“Cloud computing has become an integral part of business strategy, but it has introduced several challenges along with it,” said Ashish Nadkarni, group vice president of infrastructure systems, platforms, and technologies at IDC. “These include security and application performance concerns and high cost. As the 2019 Enterprise Cloud Index report demonstrates, hybrid cloud will continue to be the best option for enterprises, enabling them to securely meet modernization and agility requirements for workloads.”