Report by GTT Communications
CLOUD USAGE AND MANAGEMENT TRENDS: WHERE’S THE MONEY GOING?
Key Findings
35% of respondents said cost is the reason why AI workloads are in a combination of private cloud and on-premises environments.
50% of respondents said the specific needs of AI workloads are the reason why AI workloads are in a combination of private cloud and on-premises environments.
51% of respondents said compliance and regulatory demands are the reason why AI workloads are in a combination of private cloud and on-premises environments.
56% of respondents said enhanced security is the reason why AI workloads are in a combination of private cloud and on-premises environments.
For public cloud deployments, the highest ranking challenges (at 43%) are migration of apps and data, and technical skills or feasibility.
When migrating workloads to private clouds, the top challenges are managing apps post-migration, securing hybrid environments, and lack of technical skills or feasibility, each cited by 38% of respondents
Private cloud spending at the $10M+ per year level will increase from 43% in 2024 to 53.6% in 2025. This represents a 24% growth rate in private cloud spending for these cohorts. This compares to just 12% growth in public cloud spending for the same cohorts.
AI adoption ranks among the top three reasons for private cloud use.
More than half of all AI workloads already reside in a combination of private cloud and on-premises environments.