New study reports rapid surge in cloud demand as businesses reopen

Featured

In the wake of COVID-19, enabling remote work has required IT teams to rapidly lean into cloud technologies to keep their businesses operating smoothly. A new survey suggests that cloud usage continues to rise, and what was a sudden shift will become a permanent pivot for most organisations.

Despite many countries planning for a return to physical offices and workspaces, 60% of IT leaders are continuing to increase their overall cloud usage and 91% are changing their cloud strategy as a result of the current economic climate.

The study, conducted by Snow Software, the global leader in technology intelligence solutions, surveyed 250 IT leaders around the world to find out how cloud usage and investment decisions have evolved during the crisis.

Overall, 82% of those surveyed said they have increased their cloud usage over the past several weeks in response to the pandemic.

The majority of respondents – 60% – said their cloud usage continues to increase, indicating that cloud consumption patterns are still in flux even after the initial surge in remote work. Additionally, 66% reported that they will continue to use the cloud services and applications they implemented during the crisis once employees return to the workplace. Surprisingly, only 22% reported they saw an initial increase in cloud usage but that it had leveled off.

While Zoom and Teams dominated the headlines, cloud infrastructure was actually the biggest driver of this increase. When asked about how their company’s use of cloud services and applications changed in response to the current crisis, 76% said they have increased their use of cloud platforms such as Amazon Web Services (AWS), Microsoft Azure and even private cloud.

More than half of respondents (55%) noted an increase in collaboration tools like Slack, Teams or Google Chat, while 52% of those surveyed indicated an increase in cloud-based video conferencing software like Zoom, Cisco WebEx or GoToMeeting. While many companies may have already relied on these productivity services ahead of the crisis, the surge in cloud infrastructure represents a more fundamental shift in how organisations operate.

Overall, these trends hint at a larger change in enterprise cloud strategy. As IT leaders face the concurrent challenges of continuing to support remote work, enabling a return to the workplace and tightening budgets, 91% said they are altering their cloud strategy. Twice as many say they are accelerating cloud migration (45%) and digital transformation (41%) versus putting those initiatives on hold (22% and 21% respectively). However, while usage and investment in cloud technologies continue to increase, a third of respondents indicated that they are getting creative with their budget – 32% of respondents are asking their cloud vendors for extended payment terms and 31% are renegotiating their cloud contracts. Around 10% of respondents indicated that they would not be able to pay their cloud bills this month.

“The COVID-19 pandemic has turned cloud into an essential service for many organisations, as well as highlighting the complexities of managing cloud cost and usage,” said Jay Litkey, EVP of Cloud Management at Snow. “This survey confirms what we are hearing from our customers – that while many CIOs are being asked to trim costs, there will be continued investment in technology that presents the opportunity for long-term growth and stability. To weather the storm, IT leaders must take a comprehensive approach to managing cloud, uncovering opportunities to streamline costs while continuing to provide the infrastructure needed to support their workforce and drive innovation.

Related Posts

Menu