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Alternative Cloud Providers Gaining Momentum Among Enterprises: Report

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According to survey data released today from Techstrong Research, IP theft and competition from major cloud providers is a top concern among enterprise DevOps teams, which is why more enterprises are embracing the idea of alternative cloud providers. The report, commissioned by Linode (now Akamai), highlights trends around multicloud and cloud technology as a part of enterprise infrastructure.

Approximately 75% of survey respondents say that their IT infrastructure will be cloud-based by the end of this year. This is a double-digit increase over what was reported in TechStrong’s 2021 study. This continued and accelerating shift from on-premises to distributed, open and heterogeneous environments is primarily driven by the need to add optionality and reduce costs, the survey found.

The study found that over 50% of DevOps professionals and leaders say their cloud service provider is already a competitor to their B2B or B2C business or is expected to become one. Respondents expressed a desire to work with providers they find trustworthy and capable and who share their corporate values.

In addition to security and competitive issues, small and medium organizations (fewer than 10,000 employees) have additional concerns: the need to eliminate expensive and complex global cloud services that are simply not needed. These respondents voiced an unwillingness to indirectly underwrite expensive R&D for these unneeded technologies.

For many enterprises, alternative cloud providers are emerging as a solution to some of these concerns. While the largest three hyperscalers—AWS, Azure and Google Cloud Platform—are used by more than 90% of respondents, the combined market share for the top eight alternative vendors—Digital Ocean, Equinix, Hetzner, Linode (now Akamai), OVH, Rackspace, UpCloud and Vultr—slightly trailing Google Cloud Platform and ahead of Oracle and IBM Cloud.

Taking a multicloud approach is one way companies are exploring the benefits of alternative cloud providers. Nearly 70% of firms polled are using more than one cloud service provider, one-fifth of which continue to use services from a hyperscale provider. Adopting a blended cloud strategy helps DevOps teams avoid costly vendor lock-in and risky outages involved with running operations solely through one of the mega-vendors. Price, performance and customer service are major benefits to incorporating alternative cloud providers as adoption of cloud-based infrastructure continues to boom.

The global survey of 531 development professionals, managers and senior managers across 20 industries covers multicloud and alternative cloud usage by DevOps teams.

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