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Current Generation Applications and Data Is a Critical Focus Area for Enterprise Cloud Adoption

A primary research-based study sampling 1,500 global cloud Infrastructure-as-a-Service (IaaS) customers worldwide, highlights that existing applications continue to lead initial adoption of cloud infrastructure services for a majority of enterprises. While the trend is consistent with 2018, there was a marked increase in specific areas in 2019, such as the percentage of respondents reporting that their use of public cloud IaaS was led by scaling existing applications, which was 45% in 2018 compared to 62% in 2019. This highlights the value of a consistent enterprise application hosting environment for businesses to increase their use of cloud infrastructure services.

“Compared to 45% in 2018, over 60% in 2019 report that initial public cloud adoption was primarily for scaling of existing enterprise applications,” said Deepak Mohan, research director, Cloud Infrastructure Services at IDC. “This growth reflects both the rapid expansion of public cloud IaaS usage across enterprise IT customers and use cases and the importance of the transition path for existing applications and data as they move into a public cloud IaaS environment.”

Other key findings from IaaSView 2019 include the following:

  • Over half of the respondents reported that their decision to use public cloud IaaS was driven by factors other than cost, including access to cloud native frameworks, new technology services like AI/ML, and access to value-added services to manage their resources.
  • The workloads for which enterprises are using public cloud infrastructure services are roughly evenly split between commercial off-the-shelf software and custom applications.
  • A majority (58%) of respondents anticipate moving their commercial off-the-shelf software to a SaaS-based consumption model within the next five years.
  • 78% of respondents report an increase in percentage of infrastructure budget allocated to public cloud IaaS.
  • 42% of the respondents reported using one primary public cloud IaaS provider along with multiple secondary public cloud IaaS providers, and 19% report using multiple primary public cloud IaaS providers.
  • 48% report that they have applications in one public cloud that regularly communicates with applications in a different public cloud.
  • 52% report that they currently have a hybrid cloud infrastructure in place, which is actively used for optimal placement of workloads across infrastructure options.

“Public cloud is an increasingly critical component of the IT infrastructure mix at enterprises,” said Ashish Nadkarni, group vice president, Infrastructure at IDC. “IDC’s recent investments in new market intelligence programs like IaaSView underscore our recognition of the growth in importance of public cloud infrastructure services for enterprises, and our continued commitment to provide timely insights into enterprise buyer sentiments around the evolving infrastructure market.”

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