State of the Cloud 2018
March 08, 2018
Share this

Enterprise cloud spending will grow rapidly over the next year, and yet 35 percent of cloud spend is wasted, according to the RightScale 2018 State of the Cloud Survey.

“As a result, optimizing clouds costs is the top initiative for cloud users in 2018,” said Michael Crandell, CEO of RightScale. “Multi-cloud continues to be the preferred strategy for enterprises, with companies reporting that they use nearly five different clouds on average. With this multi-cloud approach, Azure is now nipping at AWS’ heels and, in fact, is in a dead heat with AWS among enterprises that are just beginning their cloud adoption.”

Key highlights from the RightScale 2018 State of the Cloud Report include:

Average enterprise cloud spending increases: For enterprises (companies with more than 1,000 employees), 26 percent say they spend more than $6 million a year in the public cloud. Another 26 percent say they spend between $1.2 million and $6 million a year.

Enterprises plan to grow public cloud spend: 20 percent of enterprises (companies with more than 1,000 employees) plan to more than double public cloud spend. An additional 17 percent plan to increase cloud spend 50 to 100 percent. Overall, 71 percent of enterprises will grow public cloud spend more than 20 percent.

Optimizing cloud costs is top initiative: Optimizing cloud costs is the top initiative again for the second year in a row for all cloud users (58 percent), which is an increase over 2017 (53 percent).

Cloud users leverage multiple clouds: Respondents are already running applications in 3.1 clouds and experimenting with 1.7 more for a total of 4.8 clouds used.

Enterprises create cloud “centers of excellence” to focus on cloud governance: 57 percent of enterprises already have a central cloud team or center of excellence with another 24 percent planning one. These central teams are focusing on planning which applications to move to cloud (69 percent), optimizing costs (64 percent), and setting cloud policies (60 percent).

Cloud architects are on the rise: We see a continued increase in cloud architects (and a slight decline in the number of IT architects). In 2018, 61 percent of architects say they are cloud architects, an increase from 56 percent in 2017. The percentage of architects identifying as IT architects has decreased to 31 percent in 2018 from 35 percent in 2017.

Top cloud challenges in 2018 are security and spend: Security is a challenge for 77 percent of respondents, with 29 percent seeing it as a significant challenge. Managing cloud spend is a challenge for 76 percent of respondents, while a smaller 21 percent see it as a significant challenge. Security is the largest issue among cloud beginners, while cost becomes a bigger challenge for intermediate and advanced users.

Public cloud adoption is up: Adoption of public cloud grew for all cloud providers. Across all users, AWS increased adoption from 57 percent in 2017 to 64 percent in 2018; Azure increased from 34 to 45 percent; Google Cloud increased from 15 to 18 percent; IBM Cloud increased from 8 to 10 percent; VMware Cloud on AWS came right out of the gate strongly with 8 percent adoption; Oracle Cloud increased from 3 to 6 percent; and Alibaba Cloud showed 2 percent adoption in its first year being included in the survey.

Azure closes ground on AWS, especially in the enterprise: Among enterprises, Azure grew enterprise adoption strongly to 58 percent, gaining ground on AWS at 68 percent. Among enterprises just beginning their cloud journey, Azure is used by 49 percent while AWS is at 47 percent. Azure also saw strong growth in the footprint of virtual machines used by its customers: 44 percent of Azure users have more than 50 VMs (up from 32 percent in 2017), while 59 percent of AWS users have more than 50 VMs (up from 51 percent in 2017).

Extended public cloud services grow (IoT, machine learning, container-as-a-service, and more): We look at the percentages of companies using extended cloud services such as relational database-as-a-service (DBaaS) (44 percent), container-as-a-service (19 percent), NoSQL DBaaS (28 percent), machine learning (12 percent), IoT Services (6 percent), and many more. The fastest-growing cloud services year over year are serverless (up 75 percent), container-as-a-service (up 36 percent), and SQL DBaaS (up 26 percent).

Private cloud adoption grows across the board: Overall, VMware vSphere continues to lead with 50 percent adoption, up significantly from last year (42 percent). OpenStack (24 percent), VMware vCloud Director (24 percent), Microsoft System Center (23 percent), and bare metal (22 percent) were all neck and neck.

Docker, Kubernetes, and cloud container services all grow: Overall Docker adoption increased to 49 percent from 35 percent last year (a growth rate of 40 percent). Kubernetes grew even faster, almost doubling to reach 27 percent adoption. AWS’ container service reached 44 percent adoption (a growth rate of 26 percent from 2017), while Azure’s reached 20 percent and Google’s reached 14 percent.

Survey Methodology: RightScale conducted its annual State of the Cloud Survey in January 2018. The survey questioned technical professionals across a broad cross-section of organizations about their adoption of cloud computing. The 997 respondents range from technical executives to managers and practitioners and represent organizations of varying sizes across many industries. Their answers provide a comprehensive perspective on the state of the cloud today. The margin of error is 3.08 percent.

Share this

The Latest

March 16, 2018

The State of the Mainframe report from Syncsort revealed an increased focus on traditional data infrastructure optimization to control costs and help fund strategic organizational projects like AI, machine learning and predictive analytics in addition to widespread concern about meeting security and compliance requirements ...

March 15, 2018

The 2018 Software Fail Watch report from Tricentis investigated 606 failures that affected over 3.6 billion people and caused $1.7 trillion in lost revenue ...

March 14, 2018

Gartner predicts there will be nearly 21 billion connected “things” in use worldwide by 2020 – impressive numbers that should catch the attention of every CIO. IT leaders in nearly every vertical market will soon be inundated with the management of both the data from these devices as well as the management of the devices themselves, each of which require the same lifecycle management as any other IT equipment. This can be an overwhelming realization for CIOs who don’t have an adequate configuration management strategy for their current IT environments, the foundation upon which all future digital strategies – Internet-connected or otherwise – will be built ...

March 13, 2018

Many network operations teams question if they need to TAP their networks; perhaps they aren't familiar with test access points (TAPs), or they think there isn't an application that makes sense for them. Over the past decade, industry best-practice revealed that all network infrastructure should utilize a network TAP as the foundation for complete visibility. The following are the seven most popular applications for TAPs ...

March 12, 2018

Organizations are eager to adopt cloud based architectures in an effort to support their digital transformation efforts, drive efficiencies and strengthen customer satisfaction, according to a new online cloud usage survey conducted by Denodo ...

March 09, 2018

Globally, cloud data center traffic will represent 95 percent of total data center traffic by 2021, compared to 88 percent in 2016, according to the Cisco Global Cloud Index (2016-2021) ...

March 08, 2018

Enterprise cloud spending will grow rapidly over the next year, and yet 35 percent of cloud spend is wasted, according to The RightScale 2018 State of the Cloud Survey ...

March 07, 2018

What often goes overlooked in our always-on digital culture are the people at the other end of each of these services tasked with their 24/7 management. If something goes wrong, users are quick to complain or switch to a competitor as IT practitioners on the backend race to rectify the situation. A recent PagerDuty State of IT Work-Life Balance Report revealed that IT professionals are struggling with the pressures associated with the management of these digital offerings ...

March 06, 2018

Businesses everywhere continually strive for greater efficiency. By way of illustration, more than a third of IT professionals cite "moving faster" as their top goal for 2018, and improving the efficiency of operations was one of the top three stated business objectives for organizations considering digital transformation initiatives ...

March 05, 2018

One of the current challenges for IT teams is the movement of the network to the cloud, and the lack of visibility that comes with that shift. While there has been a lot of hype around the benefits of cloud computing, very little is being said about the inherent drawbacks ...