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Choosing the right cloud

The 2018 Enterprise Cloud Index found the respondents use private and public clouds for different purposes. In general, 51% use the private cloud for predictable applications like internal databases, and 45% use it for data backup and recovery. When it comes to the public cloud, 46% use it for digital items, and 41% use it for IoT, both of which are less predictable.

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As organizations work to find the right cloud environments for their applications, one thing they all try to avoid is vendor lock-in. The most common way enterprises do this is to select multiple vendors for their public cloud. 41% of companies use traditional datacenters, and 18% use hybrid cloud today, but within 24 months those numbers will reverse.

In addition, the need to consolidate and unify cloud management and operations has become a top priority. As organizations tighten the reigns of their IT spend, they have become frustrated with their inability to forecast their public cloud costs. 35% of organizations that use public cloud services said they overspent their annual IT budget, while only 6% stayed under budget, leading most to lean on private cloud to gain visibility and control over their forecasting and budgets.

The 2018 Enterprise Cloud Index also reveals the changing attitudes toward public cloud providers. Of the organizations that use the public cloud, their current cloud spend amounts to 25% of the annual IT budget, and these same respondents expect this to increase to 34%, which suggests a decline in the traditional datacenter. Just 41% of respondents use a traditional datacenter, and respondents expect traditional datacenter use to decrease over the next 12 months. Conversely, hybrid cloud use is increasing.