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11 Oct 2022

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Approximately 80% of Tech Infrastructure Will Be Cloud-Based in the next Three Years

A report published by Amazon Web Services has indicated that 70% of all technology infrastructure will be cloud-based within three years. This prediction comes from a survey in which 26,000 technology professionals were asked about their plans concerning cloud computing and any barriers that could impede this move from on-premises to cloud computing.

In addition, over 25% of respondents expect 75% or more of their IT infrastructure to run on Web Services. This number is even higher among AWS users, with the majority (55%) expecting their infrastructure to be entirely made up of AWS services in the next three years.

Additionally, A Gartner report predicts that by 2020, 70% of all IT infrastructure spending will be on public cloud services.

This massive shift means that businesses must now seriously consider whether they should be moving their data to the cloud or if they will continue to run their on-premise servers and data centers.

A Brief Look into a Study Conducted by the Hackett Group in October- December 2021

As more and more businesses take up the use of cloud computing, more than saving money or increasing availability is achieved. Innovation, time to market, and improved security are benefits of the cloud. According to the Global Cloud Services study conducted by The Hackett Group, this is true.

More than 1,000 organizations were studied, and over 4,000 migrated applications were examined in 15 categories, predicting that 70% of all IT infrastructure will be cloud-based within two to three years. Technology infrastructure costs are typically reduced by 12% after migration. Among the benefits are the following:

  • A 53% decrease in the time to achieve actionable insights from data
  • A 52% average reduction in downtime
  • A 36% decrease in developer time devoted to innovation
  • A 45% decrease in time to market for new product features and functionality
  • A total of 44% fewer security and other critical infrastructure incidents

The best-performing firms achieved the most dramatic savings. For example, they experienced a 37% reduction in technology infrastructure costs and an average of 15 percentage points greater improvement across nearly a dozen objectives in the study.

According to Michael Fuller, the principal of Hackett Group, "This study was designed to look beyond the hype and quantify the benefits of both moving to the cloud and maximizing the benefits of cloud infrastructure.”

“The results clearly show that companies use the cloud to deliver broad strategic value. It's about better security, improved speed, quality, and agility. At its best, cloud migration can be the foundation that allows companies to improve their products and services rapidly."

Richard Pastore, the Senior Researcher at Hackett Group, commented: "We also came to conclusions about the differences between typical companies and top performers. Top performers make the cloud part of their operating DNA and treat it as a core competitive strategy to drive the maximum benefit."

"As a result, they reject the easier application lift and shift approach to cloud migration. Instead, they assess their workloads to determine the proper migration methodology and focus on optimizing them in the cloud, often rearchitecting or redesigning their systems and processes to take advantage of what the cloud can offer."

In the past, companies had to invest in expensive servers and equipment to keep their data up and running. But as technology becomes more mobile, these cumbersome setups are no longer necessary. Instead, cloud computing offers a cheaper, more scalable alternative that provides the same level of security without requiring much investment.

Also Read: Netflix Turns to Amazon Web Services to Manage Cloud Costs

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