Spending on cloud catching up to data centre

Spending on cloud catching up to data centre [Image: Maxiphoto via iStock]

Spending on the cloud will catch up to what businesses spend on data centres, according to the latest Internet Trends Report by Mary Meeker, of venture capital firm Kleiner, Perkins, Caufield and Byers (KPCB).

The report has revealed that during the period from 2013 to 2016, spending on the cloud rose from 23 per cent to 37 per cent. Most of this went on public cloud, which saw an increase in spending from 14 per cent in 2013 to 22 per cent in 2016. Private cloud spending grew from nine per cent in 2013 to 15 per cent in 2016.

Meanwhile, traditional data centre spending has fallen from 76 per cent in 2013 to 63 per cent last year. If this trend continues, it is likely that spending on the cloud will catch up to data centres in the near future.

Amazon Web Services was the most used cloud provider in both 2016 and 2017, according to Ms Meeker. A total of 57 per cent of respondents were running applications with the service in both years, while Microsoft’s Azure saw a rise in the number of respondents running applications. Last year, 20 per cent were doing so, increasing to 34 per cent in 2017.

The Internet Trends report said that users now expect their enterprise software products to be as well-designed, easy to use and reliable as consumer apps.

It was also revealed that the structure and process of many different aspects of the IT infrastructure have changed between 2000 and 2017. For example, the delivery method has largely shifted from on-premises to cloud-based, while pricing has moved from a perpetual license to a subscription model.

The report stated that consumers now expect their user experience to be more personalised, while products are becoming more intelligent, incorporating artificial intelligence and machine learning.