State of Enterprise Cloud Computing 2018

Cloud computing occupies a unique spot in IT history. In its early beginnings, it was the latest in a series of new models for IT operations. Existing systems were migrated to cloud providers and companies found benefits in its cost and flexibility, while working through issues around security and integration. Today, the cloud offers a path for business transformation. Cloud computing trends among technology decision-makers include usage and plans across various cloud services and deployment models, investments, businesses, drivers, and impact on business strategies and plans. All survey respondents involved in the purchase process for cloud computing for their organization have or plans to have at least one application or a portion of their infrastructure in the cloud by 2021. The International Data Group (IDG) 2018 Cloud Computing Survey recently concluded the following results:

The study reveals the following points:

  • 73% of organizations have at least one application or a portion of their computing infrastructure already in the cloud and 17% plan to do so within the next few months.
  • The average cloud budget is up from $1.62 million in 2016 to $2.2 million now. The cloud budget varies by company size with enterprise organizations investing $3.5 million and SMBs investing $889,000 (which is up from $286K in 2016).
  • More than one-third of the respondents (38%) shared that their IT department feels pressure to migrate 100% to the cloud.
  • Organizations are utilizing a mix of cloud delivery models. Currently, the average environment is 52% non-cloud, 23% SaaS[1], 16% IaaS[2] and 9% PaaS[3]; however, this will evolve to just 31% non-cloud within 18 months.

  • Many respondents are addressing their concerns with multicloud[4] providers, with or without hybrid (cloud and on premise) deployment. Among those using multicloud strategy, more than half (54%) are doing so at the suggestion of their IT department, for reasons that include improved availability, disaster recovery, flexibility, and speed by sharing workload and risk across multiple clouds.

While all organizations are moving their businesses to the cloud, it is challenging to find the right cloud service provider who can operate with extremely high security and standards. Lumen21 is an award-winning global technology firm focused on delivering the highest quality IT managed services to customers. Lumen21 is the Microsoft Azure Cloud partner and a premier provider of Compliant Cloud Computing that combines all the benefits of a proven cloud infrastructure with a compliant security framework and integrated managed services. Lumen21 received the Microsoft U.S. Public Sector Health & Life Sciences Cloud Partner of the Year Award in 2016.

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[1] SaaS (Software as a Service) is a subscription-based software licensing service.
[2] IaaS (Infrastructure as a Service) is a virtualized computing resource available over the internet.
[3] PaaS (Platform as a Service) is a category of cloud computing services that allow for a customer to create, run and manage applications without having to deal with the complex building and maintaining the infrastructure.
[4] Multicloud is the use of multiple cloud computing and storage services in a single heterogeneous architecture. This is also known as a Polynimbus cloud strategy. This also refers to the distribution of cloud assets, software, applications, etc. across several cloud-hosting environments. With a typical multicloud architecture utilizing two or more public clouds as well as multiple private clouds, a multicloud environment aims to eliminate the reliance on any single cloud provider.