Cloud Workloads to Rise to 63% by 2020, per IT Survey

We’ve all accepted that organizations are moving to the cloud. But which cloud? And how quickly? And what about multi-cloud, hybrid and edge computing? According to LogicMonitor’s Hybrid World survey, 2020 will be a monumental year for cloud. By next year, today’s relatively even split between enterprise workloads stored on-premises (46%) and those stored in the cloud (44%) will have tipped dramatically toward cloud, with cloud workloads rising to 63% and on-premises ones dipping to 25%.

LogicMonitor surveyed 135 IT professionals at the AWS re:Invent show, and while these professionals feel cloud will gain momentum as the dominant data store, not every enterprise wants workloads solely in the cloud, according to the survey results. The percentage of hybrid workflows stored both on-premises and in the cloud will hold steady (12% in 2020 vs. 11% today).

Even enterprises that already have a sizeable percentage of workloads in the cloud don’t plan to rely on just one public cloud provider for their storage needs. Fifty-four percent of survey respondents report using multiple cloud platforms for both production and experimentation, and 28% use multiple cloud platforms strictly for production.

Enterprises are adopting a multi-cloud approach, for many reasons. Not only is this approach more cost-effective, but it also offers increased security and enhanced reliability. And with multiple cloud options, IT professionals have a higher chance of finding the optimal application environments for their business needs.

Deciding where to host workloads

One data store for all? Not anytime soon, according to enterprises. When asked how long it will take before a single cloud platform handles all of an organization’s needs – instead of a mix of cloud and on-premises workloads – a third said six or more years while one in five predicted it will take at least 10 years.

Many enterprises recognize that workload storage isn’t an either-or, all-in-one proposition – with all workloads on-premises or all workloads in the cloud. The decision of where to store a workload depends on a variety of factors. Many of these factors align perfectly with the most widely recognized benefits offered by each of the data store options.

The enterprises surveyed that report storing data on-premises do so because of security, cost and compliance. They also need to place data closer to where it’s used, for latency and performance reasons, and many are required to keep sensitive data off of the cloud. And enterprises that choose to store data in the cloud do so because of reliability, performance, flexibility, scalability and agility.

Choosing public cloud providers for a multi-cloud strategy

As part of their multi-cloud strategy, survey respondents are engaged with the big three public cloud vendors – Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform. AWS is leading the way, with 97% of enterprises using it in their production or experimenting. However, Microsoft Azure and Google Cloud use is growing, and currently at 47% and 39%, respectively, for combined production and experimenting purposes.

When considering just production, enterprises use AWS (81%), Microsoft Azure (28%), and Google Cloud (13%). When considering just experimenting, enterprises primarily use Google Cloud (26%), followed by Microsoft Azure (19%) and AWS (16%).

No matter which combination of cloud services enterprises choose, migrating to the cloud shouldn’t be done lightly Enterprises would be best served in using a measured approach in determining which business functions to move. Here are four actions enterprises can take to better navigate future moves from on-premises to cloud and hybrid solutions:

  • Analyze solutions: Assess tools, ecosystem and solutions to make sure they support a hybrid environment. If not, consider replacing them before a migration.
  • Adapt the workforce: IT team members are evolving from specialists such as storage admins and networking experts to IT generalists. Plan and staff for this accordingly.
  • Adjust budgeting: In a hybrid environment, the equipment isn’t a sunk cost. Change to a budgeting method that enables enterprises to track costs daily.
  • Apply the right components: Protect IT projects by understanding the topology between application components and databases before a transition to hybrid.

With this approach, enterprises can prepare for a hybrid future that includes the benefits of the cloud for 2020 and beyond.

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Mark Banfield

Mark is a seasoned leader with a history of developing international go-to-market strategies for high-growth businesses. He comes to LogicMonitor from Autotask (acquired Vista in 2014 and merged with Datto in 2017) where he was most recently Senior Vice President and General Manager, International. In his previous role, Mark was responsible for establishing and operating all international offices and grew Autotask’s international business to around 50% of total company’s revenue. Prior to Autotask, Mark held various sales management roles at Innopath and SmartTrust. Mark is a graduate of Kingston University, with a Masters degree from University College London and further education at London Business School. In his free time, Mark enjoys spending time with his family.

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