Technology Background

Cloud Migration for Large Enterprises Will Almost Double

Posted by Cloud Computing Alerts on Oct 31, 2016

Cloud Migration to Increase“The cloud debate is over,” declared global management consulting firm McKinsey & Co in a recent report. Companies are moving significant portions of their IT workloads to the cloud in an effort to reduce time to market and improve quality.

So how are enterprises making this cloud migration? More companies are moving from traditional IT, virtualized and on-premises private cloud environments to models such as dedicated private cloud, virtual private cloud — or public infrastructure-as-a-service.

Cloud migration is occurring at a faster pace for larger enterprises, which are expected to nearly double their workloads in the private cloud by 2018, according to the report. Also, by 2018:

  • 71 percent of large enterprises plan to make the virtual private cloud their primary environment for at least one workload type.
  • 63 percent of large enterprises will move to a dedicated private cloud.
  • 51 percent of large enterprises plan a workload migration to a public infrastructure as a service model.

While small and midsize companies are moving to the cloud at a slower pace, they’re also expecting to transition a significant amount of their workload to the cloud. For example, 58 percent of midsize companies and 56 percent of small enterprises plan workload migrations to a dedicated private cloud service.

The Demand for “Hyperscale” Cloud Services

Respondents said they prefer “hyperscale” cloud services providers such as Google Cloud Platform, Amazon Web Services and Microsoft Azure that can accommodate large workload increases. Nearly half of large enterprises — 48 percent — responding to the McKinsey survey say they have handed off at least one workload to a hyperscale provider. By 2018, that number is expected to increase to about 80 percent.

What could be driving this push toward hyperscale providers? It could be enhanced security and additional capabilities other cloud services seem to lack. When considering service providers, security and compliance topped the list of barriers to cloud adoption. Cost and interoperability with on-premises cloud solutions were other barriers. As mentioned in a previous post, the cloud may be safer than on-premises solutions because of the experience and oversight offered by hyperscale providers such as Google.

Onix is a Google Cloud Premier Partner, offering licenses for the full Google Cloud product portfolio as well as a myriad of services to help any organization maximize its cloud investment. Learn more about the Google Cloud Platform and our cloud computing services such as business transformation, custom app development and managed services.

Topics: Cloud Infrastructure, GCP


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Cloud Computing Alerts

Keeping up with the fast-paced nature and impressive growth of the cloud computing industry can be daunting. Onix is here to help you stay alert and in the know through its news series — Cloud Computing Alerts. Coverage is written by Onix and includes updates about the cloud computing industry and specific trends relating to the Google Cloud Platform.