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Global Cloud Index Projects Strong Growth in the Cloud Through 2021

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).

Jump to Infographic Below

According to the study, both consumer and business applications are contributing to the growing dominance of cloud services over the Internet. For consumers, streaming video, social networking, and Internet search are among the most popular cloud applications. For business users, enterprise resource planning (ERP), collaboration, analytics, and other digital enterprise applications represent leading growth areas.

Driven by surging cloud applications, data center traffic is growing fast. The study forecasts global cloud data center traffic to reach 19.5 zettabytes (ZB) per year by 2021, up from 6.0 ZB per year in 2016 (3.3-fold growth or a 27 percent compound annual growth rate [CAGR] from 2016 to 2021).

Global Cloud Index Highlights and Key Projections:

Data center virtualization and cloud computing growth

■ By 2021, 94 percent of workloads and compute instances will be processed by cloud data centers; 6 percent will be processed by traditional data centers.

■ Overall data center workloads and compute instances will more than double (2.3-fold) from 2016 to 2021; however, cloud workloads and compute instances will nearly triple (2.7-fold) over the same period.

■ The workload and compute instance density for cloud data centers was 8.8 in 2016 and will grow to 13.2 by 2021. Comparatively, for traditional data centers, workload and compute instance density was 2.4 in 2016 and will grow to 3.8 by 2021.

Growth in stored data fueled by big data and IoT

■ Globally, the data stored in data centers will nearly quintuple by 2021 to reach 1.3 ZB by 2021, up 4.6-fold (a CAGR of 36%) from 286 EB in 2016.

■ Big data will reach 403 exabytes (EB) by 2021, up almost 8-fold from 25 EB in 2016. Big data will represent 30 percent of data stored in data centers by 2021, up from 18 percent in 2016.

■ The amount of data stored on devices will be 4.5 times higher than data stored in data centers, at 5.9 ZB by 2021.

■ Driven largely by IoT, the total amount of data created (and not necessarily stored) by any device will reach 847 ZB per year by 2021, up from 218 ZB per year in 2016. Data created is two orders of magnitude higher than
data stored. 


Applications contribute to rise of global data center traffic

■ By 2021, big data will account for 20 percent (2.5 ZB annual, 209 EB monthly) of traffic within data centers, compared to 12 percent (593 EB annual, 49 EB monthly) in 2016.

■ By 2021, video streaming will account for 10 percent of traffic within data centers, compared to 9 percent in 2016.

■ By 2021, video will account for 85 percent of traffic from data centers to end users, compared to 78 percent in 2016.

■ By 2021, search will account for 20 percent of traffic within data centers by 2021, compared to 28 percent in 2016.

■ By 2021, social networking will account for 22 percent of traffic within data centers, compared to 20 percent in 2016

SaaS most popular cloud service model through 2021

■ By 2021, 75 percent (402 million) of the total cloud workloads and compute instances will be SaaS workloads and compute instances, up from 71 percent (141 million) in 2016. (23% CAGR from 2016 to 2021).

■ By 2021, 16 percent (85 million) of the total cloud workloads and compute instances will be IaaS workloads and compute instances, down from 21 percent (42 million) in 2016. (15% CAGR from 2016 to 2021).

■ By 2021, 9 percent (46 million) of the total cloud workloads and compute instances will be PaaS workloads and compute instances, up from 8% (16 million) in 2016. (23% CAGR from 2016 to 2021).



For the purposes of the study, cloud computing includes platforms that enable ubiquitous, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. Deployment models include private, public, and hybrid clouds. Cloud data centers can be operated by service providers as well as private enterprises.

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Global Cloud Index Projects Strong Growth in the Cloud Through 2021

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).

Jump to Infographic Below

According to the study, both consumer and business applications are contributing to the growing dominance of cloud services over the Internet. For consumers, streaming video, social networking, and Internet search are among the most popular cloud applications. For business users, enterprise resource planning (ERP), collaboration, analytics, and other digital enterprise applications represent leading growth areas.

Driven by surging cloud applications, data center traffic is growing fast. The study forecasts global cloud data center traffic to reach 19.5 zettabytes (ZB) per year by 2021, up from 6.0 ZB per year in 2016 (3.3-fold growth or a 27 percent compound annual growth rate [CAGR] from 2016 to 2021).

Global Cloud Index Highlights and Key Projections:

Data center virtualization and cloud computing growth

■ By 2021, 94 percent of workloads and compute instances will be processed by cloud data centers; 6 percent will be processed by traditional data centers.

■ Overall data center workloads and compute instances will more than double (2.3-fold) from 2016 to 2021; however, cloud workloads and compute instances will nearly triple (2.7-fold) over the same period.

■ The workload and compute instance density for cloud data centers was 8.8 in 2016 and will grow to 13.2 by 2021. Comparatively, for traditional data centers, workload and compute instance density was 2.4 in 2016 and will grow to 3.8 by 2021.

Growth in stored data fueled by big data and IoT

■ Globally, the data stored in data centers will nearly quintuple by 2021 to reach 1.3 ZB by 2021, up 4.6-fold (a CAGR of 36%) from 286 EB in 2016.

■ Big data will reach 403 exabytes (EB) by 2021, up almost 8-fold from 25 EB in 2016. Big data will represent 30 percent of data stored in data centers by 2021, up from 18 percent in 2016.

■ The amount of data stored on devices will be 4.5 times higher than data stored in data centers, at 5.9 ZB by 2021.

■ Driven largely by IoT, the total amount of data created (and not necessarily stored) by any device will reach 847 ZB per year by 2021, up from 218 ZB per year in 2016. Data created is two orders of magnitude higher than
data stored. 


Applications contribute to rise of global data center traffic

■ By 2021, big data will account for 20 percent (2.5 ZB annual, 209 EB monthly) of traffic within data centers, compared to 12 percent (593 EB annual, 49 EB monthly) in 2016.

■ By 2021, video streaming will account for 10 percent of traffic within data centers, compared to 9 percent in 2016.

■ By 2021, video will account for 85 percent of traffic from data centers to end users, compared to 78 percent in 2016.

■ By 2021, search will account for 20 percent of traffic within data centers by 2021, compared to 28 percent in 2016.

■ By 2021, social networking will account for 22 percent of traffic within data centers, compared to 20 percent in 2016

SaaS most popular cloud service model through 2021

■ By 2021, 75 percent (402 million) of the total cloud workloads and compute instances will be SaaS workloads and compute instances, up from 71 percent (141 million) in 2016. (23% CAGR from 2016 to 2021).

■ By 2021, 16 percent (85 million) of the total cloud workloads and compute instances will be IaaS workloads and compute instances, down from 21 percent (42 million) in 2016. (15% CAGR from 2016 to 2021).

■ By 2021, 9 percent (46 million) of the total cloud workloads and compute instances will be PaaS workloads and compute instances, up from 8% (16 million) in 2016. (23% CAGR from 2016 to 2021).



For the purposes of the study, cloud computing includes platforms that enable ubiquitous, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. Deployment models include private, public, and hybrid clouds. Cloud data centers can be operated by service providers as well as private enterprises.

Hot Topics

The Latest

Businesses that face downtime or outages risk financial and reputational damage, as well as reducing partner, shareholder, and customer trust. One of the major challenges that enterprises face is implementing a robust business continuity plan. What's the solution? The answer may lie in disaster recovery tactics such as truly immutable storage and regular disaster recovery testing ...

IT spending is expected to jump nearly 10% in 2025, and organizations are now facing pressure to manage costs without slowing down critical functions like observability. To meet the challenge, leaders are turning to smarter, more cost effective business strategies. Enter stage right: OpenTelemetry, the missing piece of the puzzle that is no longer just an option but rather a strategic advantage ...

Amidst the threat of cyberhacks and data breaches, companies install several security measures to keep their business safely afloat. These measures aim to protect businesses, employees, and crucial data. Yet, employees perceive them as burdensome. Frustrated with complex logins, slow access, and constant security checks, workers decide to completely bypass all security set-ups ...

Image
Cloudbrink's Personal SASE services provide last-mile acceleration and reduction in latency

In MEAN TIME TO INSIGHT Episode 13, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses hybrid multi-cloud networking strategy ... 

In high-traffic environments, the sheer volume and unpredictable nature of network incidents can quickly overwhelm even the most skilled teams, hindering their ability to react swiftly and effectively, potentially impacting service availability and overall business performance. This is where closed-loop remediation comes into the picture: an IT management concept designed to address the escalating complexity of modern networks ...

In 2025, enterprise workflows are undergoing a seismic shift. Propelled by breakthroughs in generative AI (GenAI), large language models (LLMs), and natural language processing (NLP), a new paradigm is emerging — agentic AI. This technology is not just automating tasks; it's reimagining how organizations make decisions, engage customers, and operate at scale ...

In the early days of the cloud revolution, business leaders perceived cloud services as a means of sidelining IT organizations. IT was too slow, too expensive, or incapable of supporting new technologies. With a team of developers, line of business managers could deploy new applications and services in the cloud. IT has been fighting to retake control ever since. Today, IT is back in the driver's seat, according to new research by Enterprise Management Associates (EMA) ...

In today's fast-paced and increasingly complex network environments, Network Operations Centers (NOCs) are the backbone of ensuring continuous uptime, smooth service delivery, and rapid issue resolution. However, the challenges faced by NOC teams are only growing. In a recent study, 78% state network complexity has grown significantly over the last few years while 84% regularly learn about network issues from users. It is imperative we adopt a new approach to managing today's network experiences ...

Image
Broadcom

From growing reliance on FinOps teams to the increasing attention on artificial intelligence (AI), and software licensing, the Flexera 2025 State of the Cloud Report digs into how organizations are improving cloud spend efficiency, while tackling the complexities of emerging technologies ...

Today, organizations are generating and processing more data than ever before. From training AI models to running complex analytics, massive datasets have become the backbone of innovation. However, as businesses embrace the cloud for its scalability and flexibility, a new challenge arises: managing the soaring costs of storing and processing this data ...