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Cloud spend surges past data center spend, and a review of the data uses

How’s that enterprise cloud spending looking?   Bigger than the amount on data centers – and significantly so, which has happened for the first time in 2020.      The cloud and data markets were almost equal in 2019.   Cloud infrastructure services grew by 35% from 2019 to 2020, totaling $130 billion while data center spend decreased 6% to $89 billion. Synergy Research Group, who released the data, credits the COVID-19 pandemic with fueling the growth of cloud spend. 

Meanwhile, how is the workday being spent?   80% of it is messaging, chat, voice and video, per the Prodoscore Research Council.  Time spent on these apps increased 100% year over year in 2020.    And we clearly do not have an efficiency crisis – year over year productivity levels exceeded 2019 numbers every month during 2020.

Want to make it feel better?  Here’s an idea.  Citigroup is now banning internal video calls on Fridays, designed to help set boundaries for healthier work-life balance.  

And while I’m reviewing the markets, Gartner things social software and collaboration will grow 17% in 2021 alone, and another 14% in 2022.

Why do we care?

Shocking no one, cloud accelerated in the pandemic.    This is more validation of what happened than any actual prediction.     

Let’s look at the clearly growing market – collaboration.   The story – productivity is not suffering, but employees are spending the majority of their time in communication apps… and likely burning out over it.      That’s the real headline.

All the data screams what we should be doing in IT services.    Work with customers to make sure the technology is making their business outcomes better.      It’s not more, it’s better.  

Source: CIO Dive, CIO Dive

Source: CNBC

Source: Channel Life NZ