Cloud computing is nothing new in the industry and business in general in 2022. The world’s leading companies have adopted various types of Cloud technologies and products to improve enterprise performance. For those of you who are starting a business or already running a company but want to increase the operational benefits of information technology, it is mandatory to understand Cloud computing before making a new IT budget.
What is Cloud Computing?
Simply put, cloud computing is a computing service that consists of processing power, storage, software, networks, and databases that can be accessed via the internet or called the cloud. The convergence of all forms of technology allows us to use or create IT infrastructure without ownership of physical infrastructure, namely by leasing from cloud service providers.
The rapid adoption of cloud computing is proof that this service provides many advantages for companies, including:
- Lowering Operating Cost
The costs of operating a data center and purchasing server equipment and software can add up quickly, while many companies are still unable to optimize the utility of their devices. With cloud computing, companies can choose to use hardware and software devices according to their needs and simply focus on other aspects of running their business.
- Fast and practical
Companies can easily choose the Cloud services they need. In a few mouse clicks, companies can access a variety of services and computing resources provided in the Cloud.
- Ease of operation
Operating a data center within the company’s internal environment (or on-premise) usually requires time and effort that is quite time consuming to do hardware setup, software installation, network setup and other work. With Cloud computing, many steps are simplified with an automated process. With a few mouse clicks, companies are ready to use computing resources for their business.
- Security and Reliability
The companies must ensure the security of devices and data centers and ensure the performance of computing resources is always reliable. Cloud service providers typically offer computing resources with good security standards, moreover with the addition of a set of technologies and policies. So companies can reduce operational costs for data backup and disaster recovery.
We believe data say more, for that we present some statistics on cloud computing adoption from around the world. A complete list of the statistics can be read on Hosting Tribunal and Findstack.
At the end of 2021, 67% of all enterprise infrastructure was cloud-based. It is reported that 82% of the workload will reside on the cloudForbes
94% of enterprises use the cloud.
According to Right Scale’s annual State of the Cloud Report for 2019, 91% of businesses used public cloud and 72% used a private one. Most enterprises actually utilize both options – with 69% of them opting for a hybrid cloud solution.
Cloud adoption trends suggest there’s an advantage to using both public and private cloud solutions as this gives more flexibility and a variety of options. Just 22% use the public cloud exclusively, and only 3% use a private one exclusively.
30% of all IT budgets were allocated to cloud computing in 2018.
Roughly, 48% went to SaaS, 30% to IaaS, and 21% to PaaS. Naturally, bigger enterprises spend more money on cloud computing. Companies employing more than 1,000 people spent an average of $3.5 million. In contrast, the average spending of smaller companies was $889,000.
Cost-cutting tops the list of the reasons why enterprises choose to adopt the cloud.
A survey among 166 IT leaders shows there are various reasons why enterprises might move their computing to the cloud. The top one, with 61%, is the companies’ cost-cutting initiative.
Second, comes the desire for new features and capabilities with 57%. For 30% of enterprises, their current warehouses filling up has pushed them toward adopting the cloud. 23% of enterprises simply cite “executive mandate” as a reason, and only 12% of them have cited any other reason at all.
The hybrid cloud is the weapon of choice for 45% of enterprises.
In 2019, 45% of enterprises prioritized some sort of hybrid solution. 31% of enterprises see the public cloud as their top priority. 9% of enterprises prioritize an on-premises private cloud, while 6% will strive for a hosted private cloud.
According to public cloud adoption statistics, the leader among providers for yet another year is Amazon Web Services with a 67% adoption rate. However, its competitors are slowly gaining ground.
Microsoft Azure comes in second with a 60% adoption rate (a rise from 58% in 2018), followed by Google Cloud with 20% (rising from 19%). Other providers are also growing compared to 2018 – Oracle Cloud jumped to 16% from 10%, while Alibaba Cloud doubled its market share, rising from 2% to 4%.
As far as private cloud utilization goes, the leader is VMware vSphere with a 61% adoption rate. Second is VMware vCloud Director with 37%, closely followed by OpenStack with 36%.
Microsoft System Center and Microsoft Azure Stack also show a strong presence with 33% and 28% respectively.
94% of SMBs appreciate the security upgrade that adopting the cloud brings.
The cloud is cost-effective, more secure and it allows you to do some serious computing without buying infrastructure or hiring trained staff. It’s a perfect fit for smaller businesses. And the numbers prove it.
94% of SMBs report security benefits after moving to the cloud.
59% of SMBs using cloud services report significant productivity benefits from IT, compared to 30% of those not yet in the cloud.
82% of SMBs report reduced costs as a result of adopting cloud technology. 70% are reinvesting the saved money back into their business.
41% of SMBs favor the public cloud.
The workload of small businesses is less than that of enterprises. It’s expected for them to have smaller budgets allocated to cloud services. 51% of SMBs spend less than $120,000 per year. However, 11% still spend more than $1.2 million.
So, how do the size and the restrictive budget shape cloud adoption among small businesses? In contrast to enterprises, SMBs rely more on public clouds. 44% prefer either a single or multiple public clouds. 24% rely solely on a single public cloud. 61% have a multi-cloud strategy, of which only 6% focus on multiple private clouds.
Regardless of the chosen type, 78% of small businesses will fully adopt cloud computing by 2020.
By 2021, a staggering 83% of the company workload will be stored on the cloud.
A staggering 83% of the company workload will be stored on the cloud as a growing number of companies continue to move from the private to the public cloud. Even though the shared model gives you less control, you can still enjoy optimum security and ease of access.
80% of companies say operation improvements within the first few months of adopting the tech.
With this stat, it’s clear that the positive impact of cloud technology is almost instantaneous. A report from Multisoft claimed that 80% of companies report operation improvements within the first few months of adopting the tech. This research from Multisoft was conducted predominantly within startups, proving that cloud computing is not just for the big boys.
94% of businesses say significant online security improvements after moving their data to the cloud.
It’s no secret that cloud technology is very reliable when it comes to safety. According to Salesforce, 94% of businesses report significant online security improvements after moving their data to the cloud. Furthermore, a massive 91% state cloud tech proves immense help when dealing with government compliance requirements.
71% of enterprises look for speed improvements, 63% want greater flexibility, and 57% pick the improved customer support as reason #1.
So, what exactly is the reason why companies decide to trust the cloud? A report from IDG revealed that 71% look for speed improvements, 63% want greater flexibility, and 57% pick improved customer support as the number one reason according to IDG. Organizations with more than 1000 employees mainly look for flexibility and reduced operation costs, while smaller companies want to ensure their business continuity.