AWS and Azure maintain dominance as top used public cloud platforms in 2024 – Flexera report

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As cloud computing becomes increasingly integral to modern business operations, the Flexera 2024 State of the Cloud Report offers valuable insights into current trends, challenges, and strategic maneuvers within the realm of cloud computing. The report unravels the growing complexity of cloud environments and the strategic imperatives organizations are employing to maintain competitiveness.

A substantial 89% of organizations now use a multicloud strategy, up slightly from 87% in 2023. While 10% continue to rely on a single public cloud, 59% utilize multiple public clouds. Additionally, 23% of respondents use a combination of multiple public clouds and one private cloud, an increase from 19% last year.

multicloud adoption

The primary multicloud implementations involve siloing applications on different clouds (up from 44% to 57%) and setting up disaster recovery/failover between clouds. Data integration between clouds also rose to 45% from 37% year-over-year.

multicloud use

Cloud spending continues to grow, with nearly 29% of respondents spending over $12 million annually on public cloud services, up from 24% in 2023. In enterprises, 36% now spend more than $12 million per year, up from 29% last year. There’s also a 21% year-over-year increase in organizations spending $1 million or more per month on cloud services. SaaS spending is significant as well, with 22% of respondents spending over $12 million per year, rising to 26% for enterprises.

51% of workloads are hosted in public cloud

Public cloud usage is accelerating, with 51% of workloads currently hosted in the public cloud, and an additional 7% expected in the next year. Enterprises, with more complex environments, have 49% of workloads and 48% of data in the public cloud.

Workloads in public cloud

Small and medium-sized businesses (SMBs) are the leading cloud adopters, though their adoption slightly declined from the previous year. Currently, 61% of SMB workloads are in the public cloud, down from 67% last year, while 60% of their data remains in the public cloud.

Cloud migration initiatives see 58% increase in 2024

Optimizing current cloud usage and migrating additional workloads to the cloud are the leading initiatives across organizations. The emphasis on progressing a cloud-first strategy has declined to 48% from 55% year-over-year. However, the initiative to migrate more workloads to the cloud has risen from 44% to 58% year-over-year. Notably, 73% of heavy cloud users prioritize optimizing existing cloud usage to achieve cost savings.

cloud initiatives

Managing cloud costs is a major challenge

For the second consecutive year, managing cloud spending has surpassed security as the primary challenge for organizations. This change is likely because organizations are now more comfortable with cloud security, while the expanded use of cloud services has driven up costs. As a result, controlling cloud expenditures has become a top priority.

cloud challenges

AWS and Azure top the list of most utilized public cloud platforms

Amazon Web Services (AWS) and Microsoft Azure remain the most widely used cloud platforms. According to the report, 49% of respondents utilize AWS for significant workloads, 45% use Azure, and 21% use Google Cloud Platform.

top public cloud providers

Among SMBs, the use of public cloud providers has increased year-over-year. 83% of SMB respondents now use AWS, up from 71% last year. Azure usage has risen to 67% from 51%, and Google Cloud Platform has grown to 45% from 28%. For the second consecutive year, the highest percentage of SMBs experimenting with a cloud provider are choosing Google Cloud Platform.

Public cloud PaaS offerings usage is increasing

The use of public cloud Platform-as-a-Service (PaaS) offerings is on the rise. Data warehousing saw the largest increase, climbing to 65% from 56% year-over-year. Container-as-a-Service usage rose to 52%, and serverless (function-as-a-service) usage increased to 48%, both up by 9 percentage points. Machine learning and artificial intelligence (AI) services experienced a more modest gain, rising to 41% from 36%.

Microsoft Azure Stack leads in private cloud technologies

Organizations continue to adopt a multi-cloud, hybrid approach, with private cloud playing a crucial role. Microsoft Azure Stack remains the leading private cloud technology, used by 38% of respondents. VMware vSphere/vCenter has moved into the second spot, increasing its usage to 36% from 28% year-over-year. Usage of other private cloud technologies has remained stable, with OpenStack and bare-metal cloud occupying the lowest positions.

Among small and medium-sized businesses (SMBs), VMware vSphere/vCenter is more commonly used than other private cloud technologies.

Read more here.

Source: Flexera

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