Multi-cloud is overwhelmingly the standard operations model for IT organizations of all sizes, in all regions, and every industry, with 76% stating their organization has already adopted a multi-cloud strategy, and in two years that number is expected to increase to 86%, according to HashiCorp’s first annual State of Cloud Strategy report.
The report surveyed over 3,000 IT professionals about state of cloud adoption, challenges and inhibitors, COVID-19’s effect on cloud adoption and more. More than half of those respondents believe that a multi-cloud strategy has helped to achieve the organization’s business goals, with large enterprises currently recognizing the most value from multi-cloud.
The most significant drivers for multi-cloud adoption are digital transformation (34%), followed by avoiding single vendor lock-in (30%) and cost reductions (28%). Digital transformation ranked highest among large enterprises, Latin America, Asia-Pacific and within the financial services vertical.
AWS was the leading cloud provider used today (88%), but its growth is expected to remain flat in two years. Microsoft Azure ranked second (74%), while Google Cloud was third (64%). Respondents expect Microsoft Azure and Google Cloud usage to increase slightly (3% each) over the next two years. Alibaba Cloud usage is expected to continue to grow during the next two years, with adoption varying by geographic region: Asia-Pacific (27%), EMEA (14%), Latin America (12%) and North America (9%).
The report had 66% of respondents stating that they currently, or plan to have in the next two years, a Cloud Center of Excellence (CCoE). Half of organizations with annual cloud budgets of $100,000 to $2 million were more likely to have a CCoE, compared to only 25% of organizations with an annual cloud budget of $10 million to $50 million having or planning to have a CCoE. 56% of organizations with a CCoE stated their cloud spend was in line with their estimated budget for the year, while 25% stated they overspent and it was expected, and only 12% overspent unexpectedly.
Cloud budgets vary by organization size, vertical geographic region. 40% of organizations have an annual cloud spend of $100,000 to $2 million, while 27% of organizations spend less than $100,000 annually. 18% of organizations spend between $2 million and $10 million, and 15% spend more than $10 million annually.
While multi-cloud adoption is prevalent, organizations are struggling to operationalize multi-cloud. Top reasons include skills shortages (57%), and budget constraints that affect headcount (27%), inconsistent workflows across cloud environments (33%), organizations and teams are working in silos, have poor collaborations or processes are too complex (29%). Larger enterprises were more likely (27%) to be concerned about teams working in silos than smaller organizations (17%).
Results showed that cloud security was both a driver for multi-cloud adoption, as well as an inhibitor. Organizations agreed that the top cloud security concerns were data and privacy protection (40%), data theft (33%), and regulatory compliance (31%).
Staffing and skill shortages (26%) topped the list when organizations were asked what the most significant cloud challenges for the security component of cloud efforts is. That was followed by insufficient tooling and no real-time visibility and insight (12% each).
COVID-19 Impacts on Cloud: 46% of respondents stated that the COVID-19 pandemic had not accelerated cloud adoption, while 54% of respondents stated that COVID-19 had some effect on their cloud adoption timelines.19% of organizations said it had a low impact, accelerating efforts by six to twelve months, and 26% said it had a moderate impact, accelerating efforts by one to two years, and only 9% of organizations said it had accelerated their efforts by more than two years.
The top infrastructure initiatives that were accelerated as a result of COVID-19 were infrastructure as code (49%), container orchestration (41%), and compliance and governance, and network infrastructure automation (33% each).