In Mature Cloud Market, Cost Optimization is Top Enterprise Priority: ISG Study
The ISG Market Lens™ Cloud Managed Services Study reveals significant shifts in enterprise cloud priorities. Cloud maturity has doubled since 2022, with over 50% of application categories now in the cloud, up from 23% two years ago. Cost optimization has become a top strategic motivator, cited by 34% of respondents, compared to 19% in 2022.
Key findings include:
- Cloud services now account for 17% of IT budgets
- 26% of respondents prioritize empowering cloud applications with AI capabilities
- 54% rate security SLAs as very good or excellent
- 27% of respondents can 'lift and shift' business applications to the cloud, double the 2022 figure
The study highlights a growing focus on AI in cloud strategies and a need for CIOs to align migration approaches with business leaders' preferences for speed and minimal changes.
Lo studio ISG Market Lens™ sui servizi gestiti in cloud rivela significativi cambiamenti nelle priorità delle aziende riguardo al cloud. La maturità del cloud è raddoppiata dal 2022, con oltre il 50% delle categorie di applicazioni ora in cloud, rispetto al 23% di due anni fa. L'ottimizzazione dei costi è diventata il principale motivatore strategico, citata dal 34% dei rispondenti, rispetto al 19% nel 2022.
I risultati chiave includono:
- I servizi cloud ora rappresentano il 17% dei budget IT
- Il 26% dei rispondenti dà priorità all'abilitazione delle applicazioni cloud con capacità di intelligenza artificiale
- Il 54% valuta i contratti di servizio di sicurezza come molto buoni o eccellenti
- Il 27% dei rispondenti può 'trasferire e spostare' le applicazioni aziendali nel cloud, il doppio rispetto al 2022
Lo studio evidenzia un crescente interesse per l'AI nelle strategie cloud e la necessità per i CIO di allineare gli approcci alla migrazione con le preferenze dei leader aziendali per rapidità e minime modifiche.
El estudio ISG Market Lens™ sobre servicios gestionados en la nube revela cambios significativos en las prioridades de las empresas en relación con la nube. La madurez en la nube se ha duplicado desde 2022, con más del 50% de las categorías de aplicaciones ahora en la nube, frente al 23% de hace dos años. La optimización de costos se ha convertido en un motivador estratégico principal, mencionada por el 34% de los encuestados, en comparación con el 19% en 2022.
Los hallazgos clave incluyen:
- Los servicios en la nube ahora representan el 17% de los presupuestos de TI
- El 26% de los encuestados prioriza potenciar aplicaciones en la nube con capacidades de IA
- El 54% califica los SLA de seguridad como muy buenos o excelentes
- El 27% de los encuestados puede 'mover y trasladar' aplicaciones empresariales a la nube, el doble que en 2022
El estudio destaca un creciente enfoque en la IA en las estrategias de nube y la necesidad de que los CIO alineen los enfoques de migración con las preferencias de los líderes empresariales por rapidez y cambios mínimos.
ISG Market Lens™ 클라우드 관리 서비스 연구는 기업의 클라우드 우선 순위의 유의미한 변화를 보여줍니다. 클라우드 성숙도가 2022년 이래로 두 배로 증가했습니다, 현재 50% 이상의 애플리케이션 카테고리가 클라우드에 존재하며, 이는 2년 전 23%에서 증가한 것입니다. 비용 최적화가 주요 전략적 동력이 되었습니다, 응답자의 34%가 이를 언급했으며, 2022년에는 19%였습니다.
주요 발견 사항은 다음과 같습니다:
- 클라우드 서비스는 이제 IT 예산의 17%를 차지합니다
- 응답자의 26%가 클라우드 애플리케이션에 인공지능 기능을 추가하는 것을 우선시합니다
- 54%가 보안 SLA를 매우 좋거나 우수하다고 평가합니다
- 응답자의 27%가 '이동 및 전환'을 통해 비즈니스 애플리케이션을 클라우드로 보낼 수 있으며, 이는 2022년의 두 배입니다
이 연구는 클라우드 전략에서 AI에 대한 관심이 증가하고 있으며, CIO들이 비즈니스 리더들이 요구하는 속도와 최소한의 변화를 반영하여 마이그레이션 접근 방식을 조정할 필요성을 강조하고 있습니다.
L'étude ISG Market Lens™ sur les services gérés dans le cloud révèle des changements significatifs dans les priorités des entreprises concernant le cloud. La maturité du cloud a doublé depuis 2022, avec plus de 50 % des catégories d'applications désormais dans le cloud, contre 23 % il y a deux ans. L'optimisation des coûts est devenue un moteur stratégique majeur, citée par 34 % des répondants, contre 19 % en 2022.
Les principales conclusions incluent :
- Les services cloud représentent désormais 17 % des budgets informatiques
- 26 % des répondants donnent la priorité à l'habilitation des applications cloud avec des capacités d'IA
- 54 % évaluent les SLA de sécurité comme très bons ou excellents
- 27 % des répondants peuvent 'lever et déplacer' des applications métier vers le cloud, soit le double du chiffre de 2022
L'étude souligne un intérêt croissant pour l'IA dans les stratégies cloud et la nécessité pour les CIO d'aligner les approches de migration avec les préférences des dirigeants d'entreprise pour la rapidité et des changements minimes.
Die ISG Market Lens™ Studie zu Cloud Managed Services zeigt signifikante Veränderungen in den Unternehmensprioritäten hinsichtlich Cloud. Die Cloud-Reife hat sich seit 2022 verdoppelt, mit über 50% der Anwendungs-kategorien, die nun in der Cloud sind, gegenüber 23% vor zwei Jahren. Kostenoptimierung ist zum Hauptmotivator geworden, mit 34% der Befragten, die dies angeben, im Vergleich zu 19% im Jahr 2022.
Wichtige Ergebnisse sind:
- Cloud-Dienste machen jetzt 17% der IT-Budgets aus
- 26% der Befragten priorisieren die Befähigung von Cloud-Anwendungen mit KI-Funktionen
- 54% bewerten die Sicherheits-SLAs als sehr gut oder ausgezeichnet
- 27% der Befragten können Geschäftsanwendungen „heben und verschieben“, was das Doppelte der Zahl von 2022 darstellt
Die Studie hebt den wachsenden Fokus auf KI in Cloud-Strategien hervor und den Bedarf für CIOs, die Migrationsansätze mit den Präferenzen der Unternehmensleiter in Einklang zu bringen, die auf Geschwindigkeit und minimale Änderungen abzielen.
- Cloud maturity doubled since 2022, with over 50% of application categories now in the cloud
- 26% of respondents prioritize empowering cloud applications with AI capabilities
- 54% rate security SLAs as very good or excellent
- 27% of respondents can 'lift and shift' business applications to the cloud, double the 2022 figure
- AI-related projects increased by 60% in the trailing 12 months
- Less than 20% of survey respondents rate their provider's cost management highly
- Delivery against business value metrics, migration timelines, and innovation score poorly
- Potential conflict between IT and business leaders on preferred cloud migration approaches
Insights
The ISG study highlights a significant trend shift in the cloud market. With over 50% of business-critical applications now in the cloud, the primary focus has moved towards cost optimization, which is now the top priority for enterprises. This shift indicates a mature market where businesses are no longer merely adopting cloud for scalability and flexibility but are keen on extracting maximum value from their investments. This trend suggests a growing demand for tools and services that can help enterprises optimize their cloud spending.
For retail investors, this is important information. Companies that offer cloud cost management solutions or have robust cost-optimization strategies are likely to be favored by enterprises, potentially boosting their market position and revenue streams. Furthermore, the integration of AI into cloud services shows a forward-thinking approach that could yield long-term benefits. Investors should look out for companies investing heavily in AI-driven cloud solutions as they may stand to gain significantly in the future.
From a technological perspective, the doubling of cloud maturity within two years underscores the rapid evolution and adoption of cloud technologies. The emphasis on AI capabilities in cloud applications points towards a future where AI and cloud are increasingly intertwined. With 26% of enterprises prioritizing AI in their cloud strategies, there is a clear demand for AI-powered cloud solutions.
This presents opportunities for tech companies specializing in AI and cloud integration. Firms that can offer advanced AI modules and seamless cloud service integrations will likely see increased demand. Retail investors should watch for technological advancements and strategic partnerships in this space, as they can be indicative of a company's commitment to staying ahead in the competitive cloud market.
From a financial standpoint, the shift towards cost optimization in cloud services can have several implications. Enterprises are focusing on maximizing their cloud investments, which means they will be more selective about their cloud service providers and tools. Companies that offer cost-effective and efficient cloud solutions are likely to see increased market share.
Additionally, the study reveals that cloud services now account for 17% of IT budgets, highlighting the substantial financial commitment businesses are making towards cloud adoption. For investors, this indicates a stable and growing market. Companies that can provide value-for-money services and help enterprises optimize their cloud spending are positioned for potential growth. Hence, evaluating the financial health and cost-management capabilities of cloud service providers can be a strategic move for investors.
Survey of global cloud decision-makers finds more than 50 percent of applications now in the cloud, more than double the rate of 2022
The ISG Market Lens™ Cloud Managed Services Study interviewed 250 business leaders responsible for cloud decision-making worldwide about their cloud priorities, plans and performance, and found cloud maturity has doubled in the past two years. More than 50 percent of application categories are in the cloud in 2024, compared with 23 percent in 2022, and cost optimization has become a top strategic motivator for enterprise cloud services.
Thirty-four percent of respondents to the 2024 study cite cost optimization of their cloud portfolio as a top priority, compared with 19 percent who said cost was a key driver of cloud adoption in 2022. Cloud services spending now accounts for 17 percent of IT budgets, the study found.
“Cloud priorities have expanded since our 2022 cloud study, when flexibility and scalability were key priorities alongside cost,” said Michael Dornan, principal analyst and co-author of the study. “Cost optimization is now a clear priority, as enterprises want to ensure that their spending is maximized for business success and accelerating investments in AI.”
Cloud services performance, security and data accessibility are also top enterprise cloud priorities and are the most common service-level agreements (SLAs) between enterprises and providers in their cloud provider ecosystem. Of those SLAs, 54 percent of enterprises rate security as very good or excellent, closely followed by service availability at 50 percent.
In contrast, fewer than 20 percent of survey respondents rate their provider’s cost management highly. Delivery against business value metrics, migration timelines and innovation also score poorly, suggesting that while enterprise technology needs are largely met, business needs are often not.
Data from the second-quarter 2024 ISG Index™ found the number of AI-related projects increased about 60 percent in the trailing 12 months. AI projects now account for about 2.5 percent of revenue among the top 10 service providers. That share could rise to 5 or 10 percent over time as proofs-of-concept lead to projects that can scale.
“AI is playing a growing role in cloud strategies, with 26 percent of survey respondents saying empowering cloud applications with AI capabilities is a top-three priority,” said Alex Bakker, ISG Distinguished Analyst and co-author of the study. “In 2024, enterprises are focused on utilizing cloud-based AI modules and expanding cloud service provision to quickly leverage the benefits of AI. In the longer term, demand for AI is expected to drive growth in cloud spending across all categories, including private cloud."
The ISG Market Lens Study also showed the proportion of survey respondents who say they have business applications they can "lift and shift" to the cloud has doubled since 2022 to 27 percent, while the proportion re-writing applications from scratch has fallen to 19 percent, reflecting previous application enhancements that prioritized future cloud migration. Fifty percent of respondents expect to move future applications to the cloud with minimal changes, leaving the architecture unchanged.
“IT leaders and the business leaders they support often differ on their preferred approaches to cloud migration,” Bakker said. “Business decision-makers want speed and are less likely to rewrite applications, but our study found 57 percent of IT decision-makers anticipate and prefer to rearchitect applications during migration. Our study suggests CIOs will need to persuade business leaders their preferred migration approach generates value for the bottom line.”
The ISG Market Lens Cloud Managed Services Study was conducted globally in globally in April and May 2024, and surveyed 250 executives with decision making responsibility for cloud business and technology strategy.
ISG Market Lens buyer behavior studies combine findings from surveys of senior-level global executives with expert ISG research and analysis on market trends and strategic business initiatives. Past studies explored a range of topics, including business process outsourcing, digital sustainability, AI, application development and maintenance, cost optimization, cybersecurity, global capability centers, network modernization, banking and the future workplace.
Contact ISG for more information on ISG Market Lens research.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240722455823/en/
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG
+1 978 518 4520
isg@matternow.com
Source: Information Services Group, Inc.
FAQ
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