Large companies are shifting more workloads to the cloud and continue to spend most on Amazon.com Inc.’s Amazon Web Services, though Microsoft Corp.’s Azure is gaining ground, Goldman Sachs Group Inc. reports.
Asked which public-cloud providers they currently use for infrastructure-as-a-service, 56% of chief information officers at large public firms cited AWS, followed by 49% who cited Azure, the report said.
The next closest cloud services for IaaS were Alphabet Inc.’s Google Cloud, Dell Technologies Inc.’s VMware and Oracle Corp.
When asked which services they expect to be using three years from now, AWS and Azure were tied, at 49%. And when IaaS was combined with platform-as-a-service, 77% said they were using Azure, compared to just 72% for AWS, followed by Salesforce.com Inc., Google and Oracle.
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The results are based on a June survey of 100 CIOs at public firms in a range of industries, most with annual revenue of more than $1 billion. The bank has conducted the survey since 2002.
Beyond preferred cloud vendors, the latest survey found IT spending plans among these CIOs were relatively unchanged since the start of the year, with security topping the list of spending priorities, followed by software-as-a-service, analytics and cloud, CIO Journal reported Friday.
While AWS remains the top cloud service for IaaS deployments, Goldman analysts said in the report that “Microsoft Azure has the potential to reach a similar workload penetration to AWS over the next three years, with the same number of CIOs indicating that they plan to leverage both platforms.”
Similarly, they noted that Google had “improved its positioning as the number three public cloud vendor,” with market traction improving within the past six months alone.
Amazon.com’s retail website appeared to crash Monday at the start of a summer sale, with links leading to a 404 error.
A separate survey of senior IT managers earlier this year by Forrester Research found that among companies with workloads in the cloud, 86% described their strategy as a multi-cloud approach. That included tapping multiple public and private clouds for different workloads, using cloud services in addition to on-premise infrastructure, or using multiple public clouds simultaneously, Forrester reported.
According to the Goldman report, areas where CIOs expect to spend less in the year ahead included middleware, databases, operating systems and virtualizations.
Likewise, traditional storage vendors in the hardware market are “expected to lose wallet share as the mover to public cloud pressures on-premise infrastructure spending,” the report said.
Date: July 18, 2018
Source: The Wall Street Journal