36% Of Enterprises Predict Public Cloud Spending Will Increase In 2021

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451 Research’s recent survey, Voice of the Enterprise: Cloud, Hosting & Managed Services, Budgets & Outlook 2021, provides new insights into how the pandemic acts as a catalyst driving organizations to pivot toward new digital business models faster than they had anticipated. The survey is based on interviews with over 300 cloud and IT professionals.

Key insights from the survey include the following:

  • Public cloud platforms met and exceeded expectations during the pandemic. The study found 85% of the enterprises are getting positive results from their quick shift to public cloud platforms in response to the pandemic.
  • Enterprises predict the most significant spending gains in 2021 will be in IaaS, PaaS, and public cloud platforms. The pandemic made adaptive intelligence, agility, time-to-launch for new apps, and speed the most urgent priorities IT teams worked to achieve. Moving more workloads to the cloud and creating a virtualized infrastructure is behind increased spending on public cloud platforms. SaaS applications trail just by 6% at 30%, showing the robust momentum cloud platforms have in enabling new app adoption.
36% Of Enterprises Predict Public Cloud Spending Will Increase In 2021
  • 55% of enterprises say securing cloud environments is their biggest challenge when using public cloud platforms. Enterprises also say that cost optimization (51.7%), governance & compliance (49.1%), and refactoring apps for the cloud (40.7%) are the challenges they are most focused on solving today. “Governance becomes more of a challenge for organizations the more they start using the cloud,” Posey said. “If you have two people in the IT department spinning up a cloud service, they can govern themselves. But once you get more and more workloads to the cloud and more people in the organization updating the code, you actually need to put into place some governance structure.”
36% Of Enterprises Predict Public Cloud Spending Will Increase In 2021

Source: S&P Global Market Intelligence, COVID-19 driving surge in enterprise cloud adoption – 451 survey