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Coronavirus Fueling Cloud Spending: 2020 State Of The Cloud Report

‘With employees working from home and more business interactions going digital, more than half of enterprise respondents said their cloud usage will be higher than originally planned at the beginning of the year due to the pandemic,’ says to Jim Ryan, CEO of Flexera, which produced the ninth annual cloud report.

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A majority of enterprises see their cloud usage exceeding plan this year due to impacts of the coronavirus (COVID-19) pandemic, according to a new report.

Fifty-nine percent of enterprises expect their cloud usage will be slightly or significantly higher than planned, according to the ninth-annual Flexera 2020 State of the Cloud Report. Half of small and medium-sized businesses also expect their cloud usage to escalate.

Organizations’ cloud journeys are even more important for their businesses as they face unprecedented operational impacts due to the pandemic, according to Jim Ryan, CEO of Flexera, a software asset management company based in Itasca, Ill.

A portion of the increased cloud demand is a result of extra capacity required for current cloud-based applications to meet increased demand as online usage grows, the Flexera report states. Other organizations may be accelerating their migrations from data centers to the cloud in response to reduced headcount, difficulties in accessing data center facilities and delays in hardware supply chains. And some may determine that public clouds offer more reliable business continuity, according to the report, formerly known as the RightScale State of the Cloud Report.

“With employees working from home and more business interactions going digital, more than half of enterprise respondents said their cloud usage will be higher than originally planned at the beginning of the year due to the pandemic,” Ryan said. “Companies plan to migrate more services to cloud, yet they’re already exceeding cloud budgets. They will need to focus on optimizing workloads as they migrate in addition to cost management and governance to ensure operational efficiency.”

Flexera conducted the survey of 750 cloud decision-makers and users from around the world in the first quarter of this year, in still the early days of the coronavirus spreading outside of its origin in China. It added the coronavirus question in March, while the survey already was underway, and 25 percent of the last respondents answered it.

Public cloud usage overall continues to grow dramatically, according to Flexera, which found that more than half of all enterprise workloads and data are expected to be in public clouds within 12 months.

Here’s a look at other key findings from the Flexera 2020 State of the Cloud Report, including survey respondents’ adoption of public clouds, multi- and hybrid cloud strategies, container use, cloud spending and cost-optimization, and how they’re leveraging managed service providers. The responses came from 554 enterprises and 196 small and medium-sized businesses (SMBs).

 
 
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