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2023 is the Year for Organizational Cloud Adoption: 4 Key Statistics Why

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According to Statista, public cloud services end-user spending has jumped from $145 billion in 2017 to $490 billion in 2022. The consistent year-after-year rise is because cloud infrastructure allows businesses to access computing resources on demand, without the need to maintain their physical infrastructure. In this week’s blog article, we will review trends in cloud services and understand why in 2023, the industry is projected to have its biggest spending jump yet.

Cloud migration is driven by security and data protection

Deloitte published a survey with more than 500 IT leaders and professionals and found that 58% of respondents indicated that security and data protection is the top driver to migrate to the cloud. Cloud software can identify and mitigate risks that your company may face from a cyberattack faster than with on-premise hardware. In the modern age where risks appear almost at every corner you turn, it is important to secure your organization and protect your sensitive data to the best of your capabilities.

Cloud infrastructure has more predictable expenses than other options

This one is for our finance folks. Two ways to classify business expenses are capital expenditures and operating expenses. Capital expenditure refers to money a company spends to acquire, maintain, or improve fixed assets within the business. On the other hand, operating expenses are predictable month-over-month expenses that a company would incur to run its day-day business.

One of the biggest benefits of cloud infrastructure is that it is an operating expense for a business. This allows organizations to plan, as the cost for the service is consistent month over month. Having more operating expenses than capital expenditures is critical for businesses, as it allows for more predictability with profit. In addition, with cloud migration, organizations have no upfront capital costs for hardware, which helps lead to our next statistic. Zippia found that 82% of small and medium businesses report reduced costs after adopting cloud technology to replace on-premise solutions.

Cloud infrastructure has greater scalability than on-premises infrastructure

Cloud infrastructure allows for greater scalability, as the service is resource consumption based – so you pay for only what you use. Gone are the days of purchasing an on-premises server for your organization that could end up easily being outdated in 3 years.

With cloud technology, you can adjust your organization’s usage on the fly to better meet the demand you are facing. Organizations can easily scale up their resources to meet increased demand and also scale them back down if that demand decreases, allowing for more agility. Adding or removing on-premises resources can be a time-consuming and costly process. 

Cloud services allow hybrid-work organizations to work more efficiently

Over the past 3 years, the amount of organizations that have adopted a hybrid work model has grown staggeringly. People can live wherever they want, and remain connected to their job, and with that comes concerns. Will employees be able to communicate and collaborate effectively? Will the sensitive data on their BYOD remain secure?

One of the leading drivers for cloud migration is that it safely provides the ability to access data anytime and anywhere.

The rise in internet-connected devices and the increasing amount of data being generated has led to a greater demand for cloud migrations, as it provides better scalability, cost savings, and security, and drives efficiency.

Looking to learn more? Check out our on-demand webinar featuring our Senior Director of Cloud Services and our Chief Marketing Officer below!

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