Company cloud investments are on the rise despite growing concerns about their costs, according to a study by cloud optimization firm Flexera.
The ‘State of the Cloud’ of 2023 report (opens in new tab)published in March, notes that reduce cloud costs has overtaken security as the top concern for companies embracing the technology.
This makes sense given the current economic climate, but Flexera predicts that the number of companies moving to the cloud will only increase as things improve.
Enterprise cloud trends
The survey also found AWS to be the preferred cloud storage provider for small businesses, which Flexera defines as businesses with fewer than 1,000 employees.
71% of respondents preferred Amazon Web Services (AWS), while 51 percent preferred Microsoft Azure. Usage of the Google Cloud Platform is down year-over-year from 43% to 28%.
Flexera’s 2022 Report (opens in new tab) noted that Azure’s overall adoption rate surpassed that of AWS for the first time, and so the latest report points to a close race between the two. This time around, 47% percent of overall respondents preferred AWS for their workloads, while 41% chose Azure.
The adoption rates of Oracle, IBM and Alibaba have grown little and as a result it seems that, in the eyes of many, business cloud solutions are a race of two horses.
Concerns about cloud security have not completely disappeared, however, with multi-cloud deployments (companies spreading their cloud investments across multiple services and providers) to increase security remains one of the best implementations of the cloud overall.
The biggest takeaway remains the tension between companies investing in the cloud to reduce the cost of on-premises solutions such as servers, while factoring in the cost of a cloud stack.
Despite the prevalence of multicloud, Flexera’s 2023 report noted that multicloud usage has decreased by 2% since 2022, while single public cloud usage has increased by the same amount over the same period. With the end of the financial downturn not yet in sight, it can be safely assumed that this trend will continue.