Cloud spending toppled on-prem data centers in 2020 for the first time
Pandemic accelerated trend towards cloud
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Enterprises increased their spending oncloud infrastructureby almost 35% to reach almost $130 billion in 2020, far outpacing their spending on on-prem data centers, according to a new research.
While an increasing number of businesses had been steadily increasing their reliance oncloud computingservices, the pandemic seems to have accelerated the momentum.
The findings from Synergy Research Group comes on the heels offorecastsby data and analytics company GlobalData, which suggests that cloud data centers will soon become as indispensable as any other utility.
“60% of the servers now being sold are going intocloud providers’data centers and not those of enterprises,” said John Dinsdale, a Chief Analyst at Synergy Research Group, confirming the trend.
The rise of the cloud
The trend towards the move to the public cloud is very apparent looking at historic data pooled by the research. 2019 was the first time when the spending oncloud platformsedged past the resources spent on acquiringserversand software for on-prem data centers.
In 2020, the gap between the two has widened quite dramatically with enterprise spending on data center hardware and software dropping by 6% to under $90 billion in 2020.
“Clearly companies have been voting with their wallets on what makes the most sense for them,” says Dinsdale.
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While Dinsdale doesn’t expect to see such a dramatic decline in the spending on enterprise data centers over the next half a decade, the growth for the cloud infrastructure will continue to accelerate aggressively he believes.
Via:TechCrunch
With almost two decades of writing and reporting on Linux, Mayank Sharma would like everyone to think he’sTechRadar Pro’sexpert on the topic. Of course, he’s just as interested in other computing topics, particularly cybersecurity, cloud, containers, and coding.
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