Cloud computing has all the momentum, but we still live in an on-premises world for now

With all the analyst, press, and conference talk about the rise of the cloud, one could be forgiven for assuming that the entire world is now running on AWS, Azure or Google Cloud and other providers. However, at this stage, only seven percent of enterprises are truly all-cloud. This number is expected to more than double in the next two years, but still represents a minority of enterprises.


Photo: Joe McKendrick

This is one of the recent takeaways survey Of the 850 IT executives released by Foundry (formerly IDG Communications), which finds clear momentum for cloud computing in the near future, but not until on-premises systems are replaced, displaced or moved to the background, Till then a lot of work is done.

Half of the executives surveyed said their organization’s overall IT environment is “some cloud but mostly on-premises”, while more than a third (34%) is “mostly cloud but some on-premises”, and only Seven percent is “all cloud”. All-cloud numbers are expected to grow by about 250% to 17% over the next 18 months, with those planning to move everything they have to the cloud.

There is also an incentive to expand organizations’ skill repertoire for the cloud in an effort to bridge the skills gap. A third report lacking cloud management skills/expertise. And 30% report difficulty finding employees with cloud development skills/expertise. At the same time, about 8 in 10 have added an average of 3.3 new roles and tasks as a result of their cloud investments. Top roles added include the following:

  • System Administrator (33%)
  • Cloud Architect (30%)
  • Security Architect (23%)
  • Cloud System Engineer (22%)
  • Cloud Software Engineer (22%)

Of course, there’s no question that the cloud has become the default strategy for most. Seventy-two percent of IT leaders say their organization is defaulting on cloud-based services when upgrading or purchasing new technological capabilities. Nearly half, 46% of respondents, estimate that their organization’s overall IT environment will be “mostly cloud but some on-premises” by then – up from 34% currently.

Most of the IT infrastructure itself leverages cloud-based services. The percentage of companies with most or all of their IT infrastructure in the cloud is expected to increase from 41% today to 63% over the next 18 months. Overall, Software-as-a-Service (with a 52% increase over last year), followed by Platform-as-a-Service (38%), Security-as-a-Service (37) cited top development areas. %), infrastructure-as-a-service (36%) and cloud-based analytics (33%).

The survey also shows that organizations will allocate nearly one-third (32%) of their total IT budget to cloud computing in the coming 18 months.

Interestingly, while the cloud is seen as a enabler of greater business flexibility, facilitating low-cost innovation and growth to match business expansion, IT leaders still use it primarily. Let’s look at it in light of its IT usefulness – helping data centers run leaner and cheaper with greater flexibility. , The top business objectives driving cloud investing include the following:

  • Enabling Disaster Recovery and Business Continuity (40%)
  • Replacing legacy technology on-premises (39%)
  • Reduction in total cost of ownership (34%)
  • Improve employee productivity (33%)
  • Greater flexibility to respond to changing market conditions (32%)

Controlling cloud costs (36%), data privacy and security challenges (35%) and lack of cloud security skills/expertise (34%) are the top challenges. When asked what IT executives expect from future or current cloud providers, leading the list is security expertise (41%), followed by superior cloud management capabilities (40%) and cost management capabilities (38%).

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