Cloud-based computing, networking and storage infrastructure and cloud-native applications are standard choices for CIOs in most industries, and in companies of all sizes. According to a recent survey of IT professionals, 83% of enterprise workloads will be in the cloud by 2020, with 41% of enterprise workloads running on public cloud platforms (AWS, Google Cloud Platform, IBM Cloud, Microsoft Azure and others) , 20% running on private cloud, and the remaining 22% running on hybrid cloud platforms.
This trend toward the cloud within the enterprise is certainly reflected in growth numbers of key players. Microsoft’s cloud revenue nearly doubled in 4 quarters, and was up 90% year-over-year in Q3 2017. Amazon added nearly $10 billion in revenue in six quarters and was up 45% in Q3 2017 vs. the prior year.
Of the various options available to IT professionals, a hybrid cloud approach continues to be the most popular among IT organizations. According to research, almost two-thirds of enterprise-sized firms have a strategy or pilot program for hybrid cloud in place, and over 80 percent of enterprises deploy workloads using a mix of cloud types. A hybrid IT model and multi-cloud strategy is perceived to be most beneficial because it offers IT professionals more options, easier faster disaster recovery, and increased flexibility to spread workloads across end points.
COLOCATION + CLOUD MAXIMIZES BUSINESS FLEXIBILITY
For many businesses, transformation to the cloud is not a linear journey with one endpoint for all workloads. Rather, cloud transformation is complicated. Different applications require different environments. For many organizations, the end goal is to place web servers, media servers and other servers with spiky usage on two public clouds and run a direct connection back to colocation or to an in-house data center where more solid-state applications such as storage or backup are running.
Larger companies and companies with well-developed information technology departments will often opt for colocation, enabling them to rapidly expand the business and respond to changing business conditions while retaining high levels of reliability. In truth, many cloud computing vendors themselves house their systems in existing colocation facilities.
Companies will also opt for colocation over cloud. In fact, according to recent data, 30% of enterprises operating in the cloud are moving back to an on-premise model as a result of concerns around latency, performance in the public cloud, data sovereignty changes, better on-premise clouds, and cost issues.