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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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Public Cloud Adoption

Amazon Web Services (AWS), Microsoft Azure and Google Cloud remain the top three public cloud providers for respondents, with Azure “rapidly narrowing the gap” with No. 1 AWS in terms of the percentage of enterprises that are using it and the number of virtual machines enterprises are running in it, according to the report.

Seventy-six percent of enterprises said they use AWS, compared to 67 percent in 2019, while 69 percent of respondents said they’re using Azure, up from 60 percent last year.

Google Cloud, meanwhile, saw the fastest growth in adoption since the 2019 Flexera survey: 34 percent of respondents are using Google Cloud, compared to 20 percent last year.

“Among enterprises, Azure has nearly closed the gap with AWS in the breadth of adoption,” the report states. “Oracle has moved into the No. 4 spot, followed by VMware Cloud on AWS. Over a quarter of respondents are experimenting with Google Cloud and VMware Cloud on AWS, which can drive higher adoption in future years.”

Twenty percent of enterprises reported more than $12 million in annual public cloud spending, while 74 percent spend at least $1.2 million annually.

Respondents are running 53 percent of their workloads in public clouds, and that number is expected to reach 60 percent within 12 months, according to survey respondents, who said understanding application dependencies was their top challenge in terms of cloud migration.

“In the past, some organizations hesitated to put certain types of data in public cloud,” the Flexera report states. “This year’s survey found that many respondents are willing to put even sensitive data in the cloud. More than half of respondents will consider moving at least some of their sensitive consumer data or corporate financial data to the cloud, which reflects increasing confidence in the security practices of the cloud providers.”

 
 
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