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nearly 90%
When talking about types of cloud deployment, you may also hear the term multicloud environment. In fact, industry research shows that <anchor>nearly 90%</anchor> of companies are now considered multicloud, meaning they combine cloud services from at least two different cloud service providers, whether public or private. Adopting a multicloud approach gives you greater flexibility to choose the solutions that best suit your specific business needs and also reduces the risk of vendor lock-in.
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# Cloud computing trends: Flexera 2024 State of the Cloud Report

March 28, 2024

Cloud computing trends: Flexera 2024 State of the Cloud Report

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Image: Cloud computing trends: Flexera 2024 State of the Cloud Report

The thirteenth annual Flexera 2024 State of the Cloud Report (previously known as the RightScale State of the Cloud Report) highlights the latest cloud computing trends and statistics, including strategies, challenges and initiatives from a broad cross-section of industries and organizations. The cloud computing report explores the thinking of 753 IT professionals and executive leaders from a survey conducted in late Q4 2023 and highlights the year-over-year (YoY) changes to help identify trends. The respondents—global cloud decision makers and users—revealed their experiences with cloud migration, cloud computing and their thoughts about the public, private and multi-cloud market.

Select highlights of the report on cloud computing are included below.

Terminology used:

- Large enterprises are public- or private-sector organizations with 10,000 or more employees

- Enterprises are public- or private-sector organizations with 1,000 or more employees

- SMBs are small to midsized businesses with fewer than 1,000 employees

- Organizations refers to the combination of enterprises and SMBs participating in the survey

## Managing cloud spending remains the top challenge over security

This marks the second year in a row that managing cloud spending is the top challenge facing organizations. As in previous years, there needs to be more resources/expertise. More than a quarter of respondents spend over $12 million a year on cloud (29%), and nearly a quarter (22%) spend that much on SaaS.



## Organizations are embracing multi-cloud

Respondents saw a slight increase in multi-cloud usage, up from 87% last year to 89% this year.



## Enterprises turn to multi-cloud FinOps and security tools

Sixty-one percent of large enterprises use multi-cloud security, and 57% use multi-cloud FinOps (cost optimization) tools.



## Siloed apps and disaster recovery (DR)/failover are the top multi-cloud implementations

The top two multi-cloud implementations are: apps siloed on different clouds, DR/failover between clouds. Apps siloed on different clouds increased the most (up to 57% from 44% YoY). Data integration between clouds increased to 45% from 37% YoY as organizations looked for the best fit for applications and data analysis.



## AWS and Azure still lead overall

Adoption grew for Amazon Web Services (AWS), Microsoft Azure and Google Cloud. Forty-nine percent of respondents reported using AWS for significant workloads, while 45% reported using Azure and 21% reported using Google Cloud Platform. In contrast, Oracle Cloud Infrastructure, IBM and Alibaba Cloud usage is substantially lower and relatively unchanged compared to the previous year.



## Cloud faces headwinds with small and medium-sized businesses

SMBs are the highest cloud adopters, but fell off slightly from the previous year, with 61% (a drop from 67% last year) of workloads and 60% of data in the public cloud for both years.



## There are big plans for AI

Nearly all platform-as-a-service (PaaS) offerings saw a gain in usage, with the most prominent being in the data warehouse (up to 65% from 56% YoY). Container-as-a-service (52%) and serverless (function-as-a-service) (48%) are both up nine percentage points this year. Machine learning/artificial intelligence (ML/AI) had a modest gain at 41%, up from 36% last year. However, ML/AI is the PaaS offering getting the most attention from companies experimenting (32%) or planning to use it (17%).



## Sustainability trails cost optimization

Forty-eight percent of respondents say they already have defined sustainability initiatives that include tracking the carbon footprint of cloud usage. When asked how sustainability compares to cost optimization, 59% prioritized cost optimization, though an additional 29% say that both cloud cost optimization and sustainability are equally prioritized.



## Don’t let economic volatility slow innovation

The world has experienced extraordinary disruption in the past few years, and while organizations of all sizes are prioritizing every dollar of spend, the cloud and technology will weather economic storms. Enterprises that remain focused on digital transformation, seizing new opportunities and evolving strategic initiatives through a cost-conscious lens will be better positioned for success than their competitors.

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