Enterprise cloud spend increasing, as IoT, container-as-a-service, ML, AI register rapid growth

As many as 73 percent of organizations are looking into cloud optimization to reduce costs and boost efficiency, and have already implemented a central cloud team of cloud center of excellence (CoE). Security is still seen as a top challenge by 83 percent of companies, followed by managing cloud cost implications and lack of resources.

Container use is now more prevalent, as 65 percent reported using Docker and 58 percent Kubernetes, yet 41 percent are concerned about the lack of expertise. A significant rise is noticed in AWS, Azure and Google container-as-a-service.

In the past, organizations were reluctant about storing sensitive data in public cloud due to security concerns, yet Flexera’s report shows a change of heart. More than half of organizations would now move some corporate or financial data to the cloud. So far, AWS has seen the highest annual spend at more than $1.2 million committed by 40 percent of companies, while Azure came second at $1.2 million or more spent by 36 percent and Google coming third with only 18 percent of companies spending over $1.2 million.

Enterprise cloud spend has registered a significant year-over-year increase. While last year only 13 percent made an annual investment of more than $12 million and 50 percent spend over $1.2 million, figures show an increase to 20 percent of enterprises committing more than $12 million and as many as 74 percent spending more than $1.2 million.

The most popular PaaS services are relational database as a service (DBaaS), container-as-a-service and data warehouse, with container-as-a-service moving up to second from sixth place, as companies want to speed up deployment, optimize efficiency and scale operations.

A growing interest has also been observed in machine learning and big data projects. Almost half of respondents are exploring the use of edge services, IoT, stream processing and disaster recovery as a service. Compared to 2019, IoT has seen a 21 percent growth, container-as-a-service a 17 percent growth, as well as Machine learning and AI.

Flexera sees multi-cloud strategy of mixing public with private clouds as a top industry strategy that will be widely adopted by enterprises, which are now more comfortable with storing sensitive data in cloud. As cloud spend continues to grow, enterprises will look into optimizing efficiency and cost through the adoption of DevOps and containers.

Article Topics

AI/ML  |  cloud computing  |  container-as-a-service  |  edge computing  |  enterprise  |  IoT  |  PaaS