1 in 5 Businesses Plan Return to On-premises Infrastructure

Device42, an agentless hybrid IT asset management and dependency mapping solution, released results of its Cloud Adoption Survey report. Based on a global survey of 300 respondents representing multiple industries conducted in December 2022 and January, the report reveals cloud adoption trends that counter conventional wisdom and outlines strengths and weaknesses in the cloud sector.

The report’s findings may indicate a shift in demand for public cloud resources. The survey shows cloud demand remains strong: 85 percent of respondents say they already have or plan to deploy more workloads into the cloud, and 60 percent believe their cloud consumption will continue to grow in the next three to five years, regardless of their current position.

But demand has declined in the wake of the pandemic, and a significant movement of workloads from the cloud to on-premises infrastructure would counter longstanding growth trends in the sector. Also, cost concerns, perceptions the cloud hasn’t delivered on promises and users’ lack of insight into their cloud resources suggest challenges ahead. Key findings from the survey include:

  • 50 percent of survey respondents continue to rely on traditional data centers for parts of their business
  • Only 13 percent believe the cloud has delivered on its promise of cost savings and technology delivery
  • 50 percent say they don’t have the same visibility into cloud resources that they do for on-premises infrastructure
  • Over half say they don’t know exactly what type of infrastructure they have in the cloud
  • 80 percent believe the cloud is expensive or getting more expensive
  • 20 percent already have or plan to roll back their cloud workloads onto a traditional on-premises infrastructure
  • Only a third of respondents have deployed containers like Kubernetes and 17 percent have adopted microservices

“Coming on the heels of declining growth and widespread layoffs in the technology space, these survey results may indicate that an economic ‘perfect storm’ is approaching for the cloud sector,” said Raj Jalan, CEO of Device42. “In periods of economic uncertainty, businesses are watching spending closely. The cloud sector is still strong, but user intent and perceptions as revealed in the Device42 report underscore a need to communicate value more effectively and help users better understand their cloud resources to forestall a reverse-migration to traditional on-premises infrastructure.”

To view the full survey results, please visit https://www.device42.com/cloud-adoption/.  Find out more about Device42 at device42.com.