The BigCloud Report provides statistics and analysis on trends in the cloud computing industry. Some key findings include:
- 93% of organizations use cloud services, with public cloud spending expected to reach $47.2 billion by 2021
- Common cloud applications include CRM, document management, and financial management
- Cloud adoption has increased 36% in the UK over 5 years, with most using an average of 3 cloud services
- Top motivations for adopting cloud include improving agility and reducing costs, while security and skills are top concerns
- Spending on public cloud is growing faster than on-premise private or non-cloud IT, with AWS, Microsoft and IBM leading in revenues
- Factors like financial stability
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WHAT’S INSIDE
THE CLOUD MARKET
CLOUD APPLICATIONS
CLOUD IN THE UK
PUBLIC CLOUD
PRIVATE CLOUD
CLOUD MOTIVATORS
CLOUD CONCERNS
CLOUD PREDICTIONS
CHOOSING A CLOUD PROVIDER
BUYER BEHAVIOUR
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THE CLOUD MARKET
93% of organisations
are using cloud
services 1
$130bn
Size of public cloud
computing market 2
4.5x
>6x
Cloud spend
is growing
at 4.5x rate
of IT spend
Between
2015 - 2022
it will grow at
more than 6x
the rate of IT
spend 3
10%of technology budgets
spent on cloud-related
services 4
74%
of tech CFOs say cloud
computing will have the most
measurable impact on their
business in 2017. 5
85% of enterprises have
a multi-cloud strategy, up
from 82% in 2016. 6
80% say high
profile cyber-
attacks have not
deterred them from
adopting
cloud technology 7
80%
93%
85% 82%
2017 2016
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CLOUD APPLICATIONS
% of organisations who have deployed apps in
the cloud 7
CRM
Doc Management
Human Capital Management
Financial Management
Reporting & Business
38%
37%
29%
27%
26%
On average, it took 15 months to
migrate applications to the cloud 8
$102bn
Software-as-a-
Service represents
more than half
of the cloud
computing market
spend. 2
SaaS vendor with the largest market
share: 2
Salesforce
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CLOUD IN THE UK
36%
increase
Company use of
cloud-based services
in the UK has seen an
increase of 36% over
a period of 5 years 2
Bigger companies are more likely to
use 5 or more cloud-based services 2
88%
88% of UK
organisations
interviewed use cloud,
each using an average
of 3 cloud-based
services 8
58% describe their
organisation’s
primary approach
to IT as being
hybrid 8
Only 15% primarily
operate in the
cloud 8
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PUBLIC CLOUD
$47.2bn
IDC predicts that off-premises
cloud infrastructure spend
will reach $47.2bn in 2021 9
80.4%
Of the $47.2bn,
80.4% will be spent
in public cloud
datacentres 9
IBM AWS Microsoft
Annual cloud revenues: 10, 11, 12
$17bn $17.46bn $18.6bn
43%
43% of organizations
predict that within 5
years, the majority of
their IT will be public
cloud services 13
40%
of public
cloud services
are procured
outside of IT 1
74%
74% of organizations
store some or all of
their sensitive data
in the public cloud 1
62%
62% of organisations
store personal
customer information
in public clouds 1
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PRIVATE CLOUD
10.3%
On-premise private
cloud IT spend will
grow at 10.3% 9
3%
Non-cloud IT spend
will decline at 3% 9
Most common private cloud platform: 2
VMware vSphere
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CLOUD MOTIVATORS
Top reasons to adopt the cloud amongst buyers: 4
Improve agility and responsiveness
Accelerate product development / innovation
Save money
Data center modernization / legacy renewal
Shift CapEx to OpEx
Improve availability and resiliency
Cloud motivators in the UK: 8
Replacing legacy
IT technologies
36% 29%
Enabling
innovation
27%
Business
agility
All cloud users Mature cloud users
Optimising cloud costs is becoming a top initiative for all
cloud users... 6
53% 64%
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CLOUD CONCERNS
The biggest concerns around adopting cloud are: 4
Integration with existing architecture
Data loss and privacy risks (including location issues)
Legal and regulatory compliance issues
Governance over cloud solutions
Making the business case/ROI
49%
of businesses are
delaying cloud
deployment due to the
cybersecurity skills gap 1
65%
of IT professionals
believe Shadow IT is
compromising cloud
security 1
23%
of organisations
completely trust public
clouds to keep their data
secure 14
of UK organisations
experienced
difficulties when
migrating to a cloud
solution 8
90%
find the complexity
of migrating to cloud
services the biggest
difficulty 8
43%
find internal skills
and knowledge a
challenge when
migrating to a cloud
solution 8
32%
worry about moving
to cloud services
because of the
dependency on
internet access 8
31%
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CLOUD PREDICTIONS
$1
trillion
‘Cloud shift’ will
affect more than
$1 trillion in IT
spending 15
Expect big shifts in...
Business Process
Outsourcing:
$42bn of current
$119bn spend 15
Application
Software:
$36bn of current
$144bn spend 15
35%
25%
1
3
1/3 of IT staff
will be those
of 3rd party IT
providers 13
80%
of major public
cloud providers
will likely establish
regional data centre
partnerships with
Tier 1 and Tier 2
telcos 13
59%
of people think
cloud providers
will increase
their prices because of
Brexit 7
This year 2020
76% 80%
AWS, Google & Microsoft share of
cloud platform revenue 16
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CHOOSING A CLOUD
PROVIDER
FINANCIAL
STABILITY1Financial stability is the number 1 important attribute
when choosing a cloud service provider 7
What customers look for in
cloud providers: 7
Financial stability
Data held in the UK
Local support
69%
65%
58%
TACTICAL STRATEGICnot
Most cloud services bought are a result of tactical
purchases rather than part of an enterprise cloud
strategy. 4
83%
of buyers think that cloud
providers need to do more
to build confidence among
those looking to adopt
a digital transformation
strategy. 7
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BUYER BEHAVIOUR
Social media scored highly as a preference for
learning about new products and services: 17
Younger
Millenials
Older
Millenials
Generation
X
65% 59% 56%
When considering tech products and services,
technology buyers prefer sales reps who: 17
Understand their business needs and roles (90%)
Provide relevant content (78%)
Buyers value sales reps who share content
applicable to their roles: 17
Younger
Millenials
Older
Millenials
Generation
X
80% 78% 76%
Buyers valued sales reps who delivered
personalised communications: 17
Younger
Millenials
Older
Millenials
Generation
X
78% 73% 68%
BLOG
ARTICLES1
Millennials and Gen X both
rank blog articles as their
number 1 favourite type of
content 17
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BUYER BEHAVIOUR
Most IT buying committees
now involve over 4 people 17
of decision makers
work with 3+
buying committee
members on
average. 17
52%
34%
of decision makers at companies
with 501 - 5000 users said their
buying committee involves 5+
members. 17
61%
of Younger Millennials contribute
to their companies’ technology
purchases — and 1 in 3 is already
a decision-maker. 17
26%
The central IT department is
leading and implementing IT
strategy by itself in only 26% of
organisations. 18
>50%
of buyers interviewed
who are from non-IT
functions are involved
in tech purchasing
decisions 18
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References:
1 https://www.mcafee.com/us/resources/misc/infographic-building-trust-cloudy-sky.pdf
2 https://www.statista.com/topics/1695/cloud-computing/
3 http://www.salesforce.com/assets/pdf/misc/IDC-salesforce-economy-study-2016.pdf
4 https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2017/02/the-creative-cios-agenda-journey-to-cloud.PDF
5 https://www.forbes.com/sites/louiscolumbus/2017/04/29/roundup-of-cloud-computing-forecasts-2017/#31c943e831e8
6 http://assets.rightscale.com/uploads/pdfs/RightScale-2017-State-of-the-Cloud-Report.pdf
7 https://www.oneadvanced.com/globalassets/resources/cloud/cloudsurvey_2017_web.pdf
8 https://www.cloudindustryforum.org/content/state-uk-cloud-2017
9 https://www.idc.com/getdoc.jsp?containerId=prUS42454117
10 https://www.forbes.com/sites/bobevans1/2018/01/26/amazon-to-become-1-in-cloud-computing-revenue-by-beating-ibms-17-billion/#69cb43c76b3e
11 http://uk.businessinsider.com/amazon-web-services-is-battling-microsoft-azure-and-google-cloud-2017-10
12 https://www.forbes.com/sites/bobevans1/2018/02/01/microsoft-throws-down-big-challenge-to-amazon-can-you-top-18-6-billion-in-cloud-revenue/#3021da8f3810
13 http://cofinaeventos.pt/portugaldigitalawards/wp-content/uploads/sites/37/2016/05/IDC-FutureScape-Worldwide-Cloud-2016-Predictions.pdf
14 https://www.forbes.com/sites/louiscolumbus/2017/04/23/2017-state-of-cloud-adoption-and-security/#7d3924891848
15 https://www.gartner.com/newsroom/id/3384720
16 https://www.forbes.com/sites/louiscolumbus/2017/11/07/forresters-10-cloud-computing-predictions-for-2018/#32459134ae18
17 https://business.linkedin.com/content/dam/me/business/en-us/marketing-solutions/cx/2017/pdfs/the-future-of-buying-committee-ebook.pdf
18 https://www.gartner.com/smarterwithgartner/targeting-new-buyers-of-it/