Virtustream Blog

The Multi-Cloud Era Has Arrived

in Cloud, Technology, Multi-Cloud

For years, cloud industry insiders have heralded the rise of “multi-cloud” as the de facto cloud strategy for companies of every kind, especially large enterprises. In other words, taking a best-of-breed approach and leveraging multiple cloud platforms rather than placing all workloads into a single cloud environment.

There is no question 2018 was the year that the multi-cloud era arrived.  But what is really happening in the cloud space, and what are the implications for anyone who is looking to take advantage of multi-cloud?  A recently produced report by Forrester entitled, Multi-Cloud Arises From Changing Cloud Priorities, captures the cloud landscape in 2018 from the lens of cloud leaders across industries. 

The report was commissioned by Virtustream to help business and IT leaders in the enterprise make sense of the rapidly-evolving cloud landscape. The Forrester report brings together insights from 725+ cloud strategists and decision makers at large enterprises across the US, EMEA and APAC. Forrester researchers also conducted in-depth interviews with six respondents as part of the study.

Here are my top takeaways from the research – and their implications for enterprise cloud strategies at large:

Most enterprises (86 percent) now describe their cloud strategy as multi-cloud

With the overwhelming majority of respondents reporting a focus on multi-cloud strategies, the single-vendor vs. best-of-breed debate has been put to rest. It’s clear that enterprises want to leverage multiple public and private clouds, matching the right workloads with the best possible cloud environments to optimize performance.

It’s not surprising that multi-cloud has emerged as the go-to strategy for enterprises migrating to cloud – but what is surprising is how fast it has taken root. Looking ahead, all signs point to this trend continuing for the foreseeable future.

A majority (60 percent) are moving mission-critical to public cloud

In recent years, enterprises have started warming up to cloud in a big way. After seeing how cloud-native businesses like Amazon, Google, Uber and countless others are transforming entire industries, the shift was inevitable. The only way to keep tech titans from disrupting your industry is to beat them to it – and that starts with moving IT infrastructure off-premises and into the cloud.

The report finds that enterprise cloud efforts have largely matured beyond the initial experimentation phase. Today, more than half of enterprises are now migrating their mission-critical applications as well. It’s a testament to their commitment to going cloud-first for the long haul.

Nearly half spend $50M+ annually on cloud

The report also found that cloud spending is on the rise, with many enterprises spending at least $50 million annually on cloud technology, talent, and other resources. That’s a remarkable figure – and it aligns perfectly with our own observations on cloud spending. In recent years, relationships with existing clients have expanded dramatically, clearly signaling that enterprises have started doubling down on cloud.

Roughly three quarters (75 percent) plan to create a new cloud strategy in the next two years

As cloud investment increases, so too does the imperative for results. With many enterprises advancing from the experimentation phase into the hunt for real business innovation and impact, three in four respondents plan to refresh their cloud strategy in the next two years, or create a new one altogether.

It’s clear, the multi-cloud era is here.  As 2019 approaches, multi-cloud strategies and running mission-critical applications as part of that strategy are fundamental for IT leaders   Leveraging the right cloud for the right workload is also a critical part of that structure, in particular when it comes to migrating mission critical applications, like SAP.  Virtustream is unparalleled in running SAP in the cloud with over 1,000 migrations and deep expertise in seamlessly managing the complexities of these workloads.