Last updated on July 18th, 2022
There are many benefits to cloud migration. But the general advantage is applications and data can be hosted in the most effective computing environment possible. Cloud technology enables businesses to reduce costs and enhance performance and security. So, it is no wonder that the whole business world is quickly migrating to the cloud.
Types of Cloud
The three primary types of cloud are:
- Public cloud, in which services are delivered by a third-party provider over the internet
- Private cloud, which is designed for internal use by a single organization
- Hybrid cloud, in which an organization uses both a public and private cloud
According to RightScale’s 2019 annual State of the Cloud Report, 91% of businesses used the public cloud, 72% of businesses used a private cloud, and 69% of enterprises used both options.
Types of Cloud Service
The three main types of cloud service are:
- Software as a Service (SaaS): These are applications that are accessible by clients via a web browser. Apps like Gmail and Google Drive, and websites like Squarespace and WiX are good examples of SaaS.
- Platform as a Service (PaaS): This is a platform for application testing and development.
- Infrastructure as a Service (IaaS): This consists of a wide range of computing services in a virtual environment, such as servers, networking, data storage, and virtualization.
Although other models are gaining more ground all the time, SaaS is still the most commonly used type of cloud service. According to IDG, 89% of companies use SaaS, whereas 61% use PaaS, and 20% use IaaS. Cisco predicts by 2021, SaaS will cater for 75% of all cloud workloads.
Due to the massive migration to SaaS, this type of cloud service brings in a tremendous amount of revenue. According to a prediction by Gartner, SaaS is set to bring in revenue of a whopping $113.1 billion in 2021. But IaaS is the fastest-growing cloud spending service. In 2019, it brought revenue of $39.5 billion.
Transitioning to a cloud can be challenging if you do not have the right solutions to document, discover, and validate migration activities. Moreover, it is important you select a cloud service that is suitable for your business.
Why Enterprises Migrate to the Cloud
As enterprises have migrated to the cloud, they have realized that they need to have entire teams devoted to cloud services.
According to RightScale, 66% of enterprises currently have a cloud team or cloud center. And another 21% of enterprises plan on having one in the not too distant future. These cloud departments handle cloud costs, figure out which applications should run on which cloud, and set policies for cloud usage.
Enterprises know that it can take some time to become proficient in using cloud technology, though. According to Flexera, 68% of enterprises consider themselves at an intermediate or advanced level.
There are various reasons why enterprises have migrated to the cloud. But according to a survey by Datometry, the biggest reason of all is the cloud cuts costs. The study found the second biggest reason was the desire for new capabilities and features.
Why Small and Medium-sized Businesses Migrate to the Cloud
The challenges for small and medium-sized businesses that are migrating to the cloud are vastly different from the challenges that enterprises face. However, companies that have fewer than 1,000 employees are also more flexible and able to adapt to changes more easily.
And smaller businesses use managed cloud computing solutions that do not require in-house technical expertise and are not overly expensive. Here is a look at some of the primary reasons why small and medium-sized businesses are cloud migrating, according to Microsoft Office 365:
- 94% appreciate the security that comes with the cloud.
- 59% report a significant increase in productivity.
- 82% report reduced expenses, and 70% are reinvesting those savings back into their businesses.
Small and medium-sized businesses rely more on public clouds than enterprises, with 44% preferring single or multiple public clouds and 24% relying on a single public cloud.
Why Government Organizations Migrate to the Cloud
Government agencies around the world are also migrating to the cloud. According to Gartner, 50% of US government organizations are currently using the cloud.
That enables them to deliver services more efficiently and achieve savings on costs. Government organizations generally prefer using the private cloud, although there is a growing interest in spending on public infrastructure. Currently, between 20% and 60% of government agencies’ workload is handled in the cloud.
The majority of government agencies spend between $2 million and $3 million per year on cloud technology. According to Macquarie Government, 60% use an internal team to handle cloud migration, while the rest rely on an external service provider.
Note: This a guest post from Kevin E. Kline, Principal Program Manager at SentryOne, bestselling author of ‘SQL in a Nutshell’, Founder & President Emeritus, PASS.Org, Microsoft MVP since 2003. You can follow him on Twitter and LinkedIn. The author’s views are entirely his own and may not reflect the views of Ace Cloud Hosting.
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