AllCloud’s report says 85% of businesses will have most of their workloads in the cloud
The Lowdown: The survey found that organizations are planning to grow their use of not only cloud infrastructure but also cloud-native technologies like containers and microservices.
The Details: More than 150 IT decision-makers at companies with at least 300 employees and that are using Amazon Web Services (AWS) participated in the survey. AllCloud is a partner of both AWS and Salesforce, but the survey answers go across cloud platforms generally and are not exclusively about AWS, according to the company.
Key findings include:
> Going to the cloud: 85% of respondents said that by the end of the year, most of their workloads will be in the cloud, while 24% said that they will be cloud-only. Only 7% said they have less than 25% of their workloads in the cloud, though that will fall to less than 4% over the next year.
> Embracing new technologies: More than 56% said that at least half of their cloud workloads are using containers and microservices.
> Choosing a cloud platform: 28% of respondents said security was their top issue when deciding on a cloud platform, while 26% said reliability was the primary objective. Other concerns included flexibility (22%), cost (14%), and integration (8%). Closing out the list was internal expertise and available resources, at 2%. Fewer than 5% made artificial intelligence (AI) or machine learning a priority.
> Growing cloud skills: 56% said that at least seven people within their companies are tasked with maintaining those companies’ cloud infrastructures, with AllCloud officials saying that number will likely rise as the use of the cloud grows.
> Taking the multicloud route: More than 49% of respondents said they’re using Microsoft Azure in conjunction with AWS, while 40% are using Google Cloud. In addition, 32% are using IBM Cloud and 20.4% are using Oracle Cloud.
> Leveraging hybrid clouds: Almost 65% said they’re leveraging both the public cloud and a private cloud, either on premises or in a co-location facility.
> Using managed services: 43% of respondents said that they are running more than half of their AWS workloads with outside help. In addition, 21% said they are most likely to deploy AWS database services this year, followed by Internet of Things (IoT) services at 17%, new technologies (containers, microservices, serverless, and DevOps) at 14.5%, Big Data and analytics (almost 14%), and migration (10.5%).
The Impact: Synergy Research Group analysts tagged the cloud as one of several mega-trends over the past decade, noting that from 2010 to 2019, annual spending on cloud infrastructure went from essentially zero to almost $100 billion, including growing about 40% between 2018 and 2019. Throughout the decade, average cloud spending grew 56% a year, and the research firm said that 2019 will be the first year that enterprises spent more on cloud services – including Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and hosted private cloud – than on data center equipment.
AWS also continues to dominate the field, with about 40% of the market, though Microsoft, Google, and China’s AliBaba have grown share. In total, those four companies account for 72% of the market.
Background: AllCloud, an Israel-based company founded in 2014, last month announced raising $18 million in a funding round, bringing the total amount raised to $26 million. Company officials said they planned to use some of the money to expand their business through acquisitions.
The Buzz: “The survey findings are consistent with what we’re hearing from our customers,” AllCloud CEO Eran Gil said. “The ‘I’m planning on moving to the cloud’ train has long since left the station, with the vast majority of organizations having moved, or in the process of moving their workloads to the cloud. Likewise, DevOps technologies are rising, and cost continues to take a back seat to more end-user facing benefits of cloud, such as reliability and security. It will be interesting to see how these results shift in 2020.”
“This data also shows that organizations not only understand that the cloud is an enabler for agility, innovation, and success but that there is no ‘end-game’ for the cloud,” the report’s authors wrote. “In fact, if companies operate on the misconception that they just need to migrate to the cloud and the journey is complete, they have missed the point altogether. In contrast, as soon as organizations have achieved one goal, they should be moving on to the next, with a dynamic, breathing roadmap that supports the future lifecycle of their organization.”