As the global pandemic has accelerated cloud adoption, Microsoft Azure and AWS have emerged as the clear winners.
Flexera has released its 2021 State of Tech Spend Report. As expected, digital transformation and cloud adoption are on the rise. Some 56% of respondents said digital transformation was a top initiative for 2021, as opposed to 54% in 2020. Cloud adoption saw even greater jump, with 48% of respondents making it a top priority in 2021, vs 40% in 2020. Not surprisingly, work from home was the single biggest driver for change, with 74% citing it as the leading factor.
Of the cloud providers, Microsoft Azure and AWS were the clear winners. Some 61% of respondents said they were going to increase spending on Microsoft Azure in 2021. Similarly, 57% plan on increasing their spending on Microsoft SaaS, while 54% plan on spending more on AWS. Google appears set for more modest gains, with only 31% planning on increased spending on Google Cloud.
The forecast looks even worse for IBM and Oracle. Respondents plan on increasing their spending on IBM Cloud a mere 16%, with 14% planning to decrease spending. While 20% said they planned on increasing spending on Oracle Infrastructure Cloud, 13% plan on decreased spending. The outlook is even worse for Oracle Licensed Software, with 22% planning to increase spending, as opposed to 25% planning to decrease expenditures.
Flexera’s report is an important look into the cloud industry and the ongoing digital transformation, and is even better news for Microsoft and AWS.