98% of Enterprises Using Public Cloud Have Adopted a Multicloud Infrastructure Provider Strategy

Multicloud is the new reality in enterprise technology according to a study from 451 Research, part of S&P Global Market Intelligence, commissioned by Oracle Cloud Infrastructure. The study collected information from 1,500 respondents at enterprises—organizations with more than 1,000 full-time employees in North America or more than 500 in other regions—about how they use the cloud within their organization and found that almost every cloud journey is now becoming a multicloud journey.

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In recent years, cloud has become nearly synonymous with IT as enterprises seek increased business agility and improved operational efficiency from the technology they use. While these trends have existed for some time, more than 90 percent of respondents agreed that the COVID-19 pandemic has been a strong driver of greater interest and investment in cloud technology. As organizations faced new challenges such as increased levels of remote work and collaboration with new business partners and suppliers, they adopted a multicloud strategy to gain the flexibility and scalability they needed for this new reality.

“The ‘one-stop-shop’ mentality has died when it comes to the cloud. Instead, multicloud is the reality of enterprise technology environments as these organizations seek to get the right mix of solutions and capabilities they need to operate effectively,” said Melanie Posey, research director, Cloud & Managed Services Transformation at 451 Research. “Multicloud is here to stay, and enterprises are choosing this model for the benefits it provides for a range of different business and operational requirements, like business agility or access to best-of-breed technology.”

Key findings from the study include:

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Almost every cloud journey is multicloud

• 98 percent of enterprises surveyed are using or plan to use at least two cloud infrastructure providers and 31 percent are using four or more.
• 96 percent reported they are using or plan to use at least two cloud application providers (Software-as-a-Service), with 45 percent using cloud applications from five or more providers.
• This multicloud strategy allows IT departments to meet the specific technology needs of different teams across the organization.

Data sovereignty and cost optimization are driving demand for multicloud strategies

• The top two drivers of multicloud strategies in enterprises are data sovereignty (41 percent) and cost optimization (40 percent).
• Other drivers of multicloud strategies include business agility and innovation (30 percent), best of breed cloud services and applications (25 percent) and cloud vendor lock-in concerns (25 percent).
• Multicloud strategies give enterprises more control over where and how their data is stored and used, while also ensuring businesses can control the costs of their cloud operations by adjusting which services they use from different providers.

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