2019

RightScale®

STATE OF THE
CLOUD REPORT
from Flexera™

As Cloud Use Grows,
Organizations Focus
on Cloud Costs andGovernance© 2019 Flexera. All rights reserved. This work by Flexera is licensed
under a Creative Commons Attribution 4.0 International License.

1

RIGHTSCALE 2019 STATE OF THE
CLOUD REPORT FROM FLEXERA™
As Cloud Use Grows, Organizations Focus on
Cloud Costs and Governance
Executive Summary

RightScale was recently acquired by Flexera, a provider of technology asset
management solutions that help enterprises gain insights on how to optimize
spend and reduce risk. The same RightScale cloud industry research team thathas been producing the State of the Cloud Report for the past eight years has
joined Flexera, and has again conducted the annual State of the Cloud Survey
and prepared the resulting analysis for the RightScale 2019 State of the Cloudreport from Flexera.
In January 2019, Flexera surveyed 786 technical professionals across a broadcross-section of organizations about their adoption of cloud computing.
The 2019 State of the Cloud Survey identified several key findings:
84 percent of respondents have a multi-cloud strategy.
• 84 percent of enterprises have a multi-cloud strategy.
• Enterprises with a hybrid strategy (combining public and private clouds)
grows to 58 percent in 2019 from 51 percent in 2018, while the number oforganizations with a strategy of multiple public clouds or multiple private
clouds declines slightly.
94 percent of respondents use cloud.
• Public cloud adoption is 91 percent and private cloud adoption is72 percent.
• 69 percent of respondents use at least one public and one private cloud.
Enterprises are prioritizing a balance of public and private clouds.
• Public cloud is the top priority of 31 percent of enterprises.
• Many companies are taking a balanced approach, with 28 percent
prioritizing hybrid cloud and an additional 17 percent prioritizing public
and private cloud equally.

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under a Creative Commons Attribution 4.0 International License.

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Organizations leverage almost 5 clouds on average.
• Respondents are already running applications in a combination of 3.4
public and private clouds and experimenting with 1.5 more, for a total of
4.9 clouds.
• Among those using any public cloud, respondents are currently using 2.0
public clouds and experimenting with 1.8 more.
• Among those using any private cloud, respondents are currently using 2.7
private clouds and experimenting with 2.0 more.
Enterprise cloud spend is significant and growing quickly.
• Companies plan to spend 24 percent more on public cloud in 2019vs. 2018.
• 13 percent of enterprises spend more than $12 million a year on public
cloud, while 50 percent spend more than $1.2 million annually.
• Public cloud spend is growing 3 times faster than private cloud usage(24 percent vs. 8 percent).
• SMBs generally have fewer workloads overall and therefore smaller cloudbills, but 11 percent of SMBs still exceed $1.2 million in annual spend.
Companies run a majority of workloads in cloud.
• Respondents overall run 38 percent of workloads in public cloud and41 percent in private cloud (which may include cloud-enabled virtualenvironments).
• Enterprises run 33 percent of workloads in public cloud and 46 percent inprivate cloud.
• SMBs run 43 percent of workloads in public cloud and 35 percent inprivate cloud.
Enterprise central IT focuses on managing and optimizing cloud costs.
• 66 percent of enterprises already have a central cloud team or cloudcenter of excellence, with another 21 percent planning one.
• Among SMBs, only 31 percent have a central cloud team.
• For enterprises, the top responsibilities of central IT are managing andoptimizing cloud services costs (68 percent), deciding or advising on whichapplications to run in which clouds (62 percent), and setting policies forcloud use (59 percent).
• Within the enterprise, most of the responsibility for governing andoptimizing cloud costs is falling on the central cloud team and theinfrastructure and operations team, while business units frequently own
the cloud budget.

© 2019 Flexera. All rights reserved. This work by Flexera is licensed
under a Creative Commons Attribution 4.0 International License.

3Managing cloud spend and cloud governance are the top challenges
for enterprises.
• Cloud cost management and cloud governance are top challenges
regardless of cloud maturity.
• Among enterprises, optimizing cloud costs (84 percent in 2019 vs.
80 percent in 2018) and cloud governance (84 percent in 2019 vs.
77 percent in 2018) are growing challenges.
• Managing software licenses that are running in public cloud environments
is also becoming a top-of-mind issue. Key challenges are understanding
the cost implications of licensed software running in the cloud (52percent), the complexity of license rules in public cloud (42 percent), andensuring that they are following the rules (41 percent).
The #1 priority in 2019 is cloud cost optimization.
• Optimizing existing cloud use for cost savings continues to be the top
initiative in 2019 for the third year in a row, increasing to 64 percent from58 percent in 2018.
• The challenge of managing cloud spend grows as cloud use increases.
While 64 percent of all respondents cite optimizing cloud spend as the top
initiative, that number is even higher among intermediate and advanced
cloud users at 70 percent and 76 percent, respectively.
• Other top initiatives include moving more workloads to cloud (58 percent),
expanding the use of containers and adopting a cloud-first strategy(tied at 39 percent), and implementing automated policies for governance(35 percent).
Cloud users are not doing all they can to optimize costs.
• Cloud users underestimate the amount of wasted cloud spend.
Respondents estimate 27 percent waste in 2019, while Flexera hasmeasured actual waste at 35 percent.
• Despite an increased focus on cloud cost management, only a minority ofcompanies have implemented automated policies to address this issue,
such as shutting down unused workloads or rightsizing instances.
• Cloud users are not fully leveraging the various cloud provider discounting
options. Among Amazon Web Services® (AWS) users only 47 percent use
AWS Reserved Instances, while Microsoft Azure users leverage Reserved
Instances only 23 percent of the time.

© 2019 Flexera. All rights reserved. This work by Flexera is licensed
under a Creative Commons Attribution 4.0 International License.

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Container use is up, and Kubernetes use is skyrocketing.
• The use of Docker® containers continues to grow, with adoption increasing
to 57 percent from 49 percent in 2018.
• Kubernetes, a container orchestration tool that leverages Docker, achieved
faster growth, increasing from 27 percent to 48 percent adoption.
• Enterprise adoption is even higher, with 66 percent using Docker and 60
percent leveraging Kubernetes.
• The AWS container service (ECS/EKS) has 44 percent adoption in 2019 (flatfrom 2018), while Azure Container Service adoption reaches 28 percent (upfrom 20 percent in 2018) and Google Container Engine grows slightly toreach adoption of 15 percent.
Ansible takes the top spot among configuration tools.
• Among all respondents, Ansible has 41 percent adoption, followed by Chef
and Puppet at 37 percent adoption.
• Ansible has an even higher adoption rate among enterprises (53 percent),
as do Chef and Puppet, tied with 50 percent adoption each.
• Ansible leads among SMBs again this year with 26 percent adoption,
followed by Terraform and Chef.
• Terraform shows the strongest growth since last year, up by 55 percent
from 20 to 31 percent adoption.
Azure continues to grow quickly and reduce the AWS lead, especiallyamong enterprises.
• Overall Azure adoption grew from 45 to 52 percent to narrow the gap
with AWS. As a result, Azure adoption has now reached 85 percent of AWS
adoption, up from 70 percent last year.
• Azure continues to catch up with AWS overall especially among
enterprises, where Azure adoption increases slightly from 58 percent to 60
percent, while AWS adoption in this group is relatively flat at 67 percent.
This puts Azure with 89 percent of the AWS adoption level based on theoverall number of respondents using each cloud.
• Google maintains its third-place position, increasing slightly from 18 to 19
percent adoption.
• In its second year of availability, VMware Cloud on AWS moves up to
fourth position this year, increasing to 12 percent from 8 percent in 2018,a growth rate of 50 percent.
• Among other public cloud providers that were included in the survey lastyear, all saw increased adoption this year especially among enterprises,with Oracle growing from 10 to 16 percent (60 percent growth rate), IBM
Cloud from 15 to 18 percent (20 percent growth rate), and Alibaba from 2
to 4 percent (100 percent growth rate).

© 2019 Flexera. All rights reserved. This work by Flexera is licensed
under a Creative Commons Attribution 4.0 International License.

5• Enterprise respondents with future projects (the combination ofexperimenting and planning to use) show the most interest in Google(41 percent).
• Among earlier-stage cloud users, AWS and Azure are closer, with 52 percent
of cloud beginners choosing AWS vs. 41 percent for Azure. Google seessignificantly stronger adoption when users are advanced (24 percent)vs. beginner (9 percent adoption).
Use of PaaS services from public cloud providers is exploding.
• Serverless is the top-growing extended cloud service for the second year ina row, with a 50 percent growth over 2018 (24 to 36 percent adoption).
• Stream processing is tied for first, increasing from 20 to 30
percent adoption.
• Machine learning, container-as-a-service, and IoT are the next
fastest growing.
• Among enterprises, relational DBaaS (60 percent), data warehouse(50 percent), and push notifications (50 percent) are in the top threepositions, while container-as-a-service is fourth (48 percent).
• Machine learning has the highest interest for future use, with 48 percent
of all respondents experimenting with or planning to use it.
Private cloud adoption is increasing slowly.
• In 2019, adoption of private cloud is increasing slowly acrossmost providers.
• Overall, VMware vSphere continues to lead with 50 percent adoption, flatfrom last year.
• OpenStack (28 percent), VMware vCloud Director (27 percent), Microsoft
System Center (25 percent), and bare metal cloud (24 percent) all show
small increases compared to 2018.
• Azure Stack is in the sixth slot, but shows the highest growth (22 percent in2019 vs. 17 percent in 2018).
• AWS Outpost was announced in late 2018 and showed strong adoption outof the gate (12 percent) and strong interest for future use (29 percent).
Workloads in Azure are growing but lag AWS.
• Among all respondents, 13 percent have more than 1,000+ VMs in vSphere,
as compared to 11 percent in AWS and 6 percent in Azure.
• AWS leads in respondents with more than 100 VMs, (33 percent for AWS vs.
27 percent for VMware and 25 percent for Azure).
• Year over year, Azure showed the largest increase in percentage of users,with more than 100 VMs from 17 percent in 2018 to 25 percent in 2019.

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under a Creative Commons Attribution 4.0 International License.

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Methodology

In January 2019, Flexera conducted its annual State of the Cloud Survey.
The survey questioned technical professionals across a broad cross-sectionof organizations about their adoption of cloud infrastructure. The 786
respondents range from technical executives to managers and practitioners
and represent organizations of varying sizes across many industries.
Respondents represent companies across the cloud spectrum, including
both users (21 percent) and non-users (79 percent) of RightScale Cloud
Management Platform from Flexera. Their answers provide a comprehensive
perspective on the state of the cloud today.

Key Survey Stats:All respondents = 786• Enterprise respondents (1,000+ employees) = 456• SMB respondents (<1,000 employees) = 330
Margin of error = 3 percent

Use of Charts and Data in This Report

We encourage the re-use of data, charts, and text published in this reportunder the terms of this Creative Commons Attribution 4.0 International
License. You are free to share and make commercial use of this work as longas you attribute the RightScale 2019 State of the Cloud Report from Flexera as
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Respondent Demographics© 2019 Flexera. All rights reserved. This work by Flexera is licensed
under a Creative Commons Attribution 4.0 International License.

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The Cloud Maturity ModelIn this report, RightScale uses its Cloud Maturity Model to segment andanalyze organizations based on their levels of cloud adoption. The Cloud
Maturity Model identifies four distinct stages of cloud maturity. Denoting
cloud adoption by organizations from least to greatest experience, thefour stages are:Watchers are organizations that are developing cloud strategies and plans
but have not yet deployed applications into the cloud. They want to evaluate
available cloud options and determine which applications to implement in
the cloud.
Beginners are new to cloud computing and are working on proof-of-concepts
or initial cloud projects. Beginners want to gain experience with cloud in orderto determine future projects.
Intermediate users have multiple projects or applications already deployed in
the cloud. They are focused on improving and expanding their use ofcloud resources.
Advanced businesses are heavily using cloud infrastructure and are looking to
optimize cloud operations as well as cloud costs.
The survey on which the RightScale 2019 State of the Cloud Report from
Flexera is based includes organizations across all the stages of cloud maturity.

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under a Creative Commons Attribution 4.0 International License.

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When comparing cloud adoption in large and small companies, over two-thirds(68 percent) of enterprise respondents are now in the two most mature stages— Intermediate and Advanced.

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In the last year, the proportion of enterprises in the Intermediate andAdvanced stages has continued to increase — now representing 68 percent
of respondents in 2019 vs. 66 percent in 2018.

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under a Creative Commons Attribution 4.0 International License.

11Key Findings

84 percent of enterprises have a multi-cloud strategy.
The percentage of enterprises that have a strategy to use multiple clouds is 84
percent (vs. 81 percent in 2018), while those planning a hybrid cloud strategy
grew to 58 percent (from 51 percent in 2018). There was a slight decrease in
the number of enterprises with a strategy of multiple public clouds or multiple
private clouds.

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under a Creative Commons Attribution 4.0 International License.

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SMBs lean toward public cloud, with 44 percent preferring either single ormultiple public clouds.

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94 percent of respondents use cloud.
The overall portion of respondents using at least one public or private cloud is
94 percent. The number of respondents adopting public cloud is 91 percent.
The number of respondents now adopting private cloud is 72 percent.

Enterprises are prioritizing a balance of public and private clouds.
Among enterprises, the central IT team is typically tasked with assembling a
hybrid portfolio of clouds. This year, while 31 percent of enterprises see public
cloud as their top priority, a combined 45 percent of enterprises see hybrid
cloud or a balanced approach between public and private as the biggest focus.
Only 9 percent of enterprises are focusing on building a private cloud, and6 percent see their top priority as using a hosted private cloud.

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under a Creative Commons Attribution 4.0 International License.

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Organizations leverage almost 5 clouds on average.
On average, survey respondents are using 4.9 clouds across both public andprivate. Respondents are already running applications in 3.4 clouds andexperimenting with 1.5 more.

Among companies that use at least one public cloud, they are already runningapplications in an average of 2.0 public clouds and experimenting with another
1.8 public clouds. Although fewer companies are using private clouds, thosethat do use more, running applications in an average of 2.7 private clouds andexperimenting with an additional 2.0 private clouds.

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under a Creative Commons Attribution 4.0 International License.

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Enterprise cloud spend is significant and growing quickly.
As use of public cloud has grown, so has the amount of spend. Public cloud
spend is quickly becoming a significant new line item in IT budgets, especiallyamong larger companies. Among all respondents, 23 percent spend at least$2.4 million annually ($200,000 per month) on public cloud while 33 percent
are spending at least $1.2 million per year ($100,000 per month). Amongenterprises the spend is even higher, with 38 percent exceeding $2.4 million
per year and half (50 percent) above $1.2 million per year.
SMBs generally have fewer workloads overall and, as a result, smaller cloudbills (just over half spend under $120,000 per year). However, 11 percent of
SMBs still exceed $1.2 million in annual spend.

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under a Creative Commons Attribution 4.0 International License.

16Companies are not only using a lot of public cloud, but also planning to growpublic cloud spend faster than private cloud use. On average, respondents
plan to grow public cloud spend by 24 percent in 2019, while growing private
cloud use by 8 percent.

Companies run a majority of workloads in cloud.
Respondents run 79 percent of workloads in cloud, with 38 percent ofworkloads in public cloud and 41 percent in private cloud. It’s important tonote that the workloads running in private cloud may include workloads
running in existing virtualized environments or bare-metal environmentsthat have been “cloudified.”© 2019 Flexera. All rights reserved. This work by Flexera is licensed
under a Creative Commons Attribution 4.0 International License.

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Enterprises run 79 percent of workloads in cloud, with more in private cloud(46 percent) vs. public cloud (33 percent). SMBs run 78 percent of workloads incloud, with more in public cloud (43 percent) vs. private cloud (35 percent).

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Most enterprises have a central cloud team.
As companies adopt cloud-first strategies, they are increasingly creating acentral cloud team or a “Cloud Center of Excellence.” These teams provide
centralized controls, tools, and best practices to help accelerate the use ofcloud while reducing costs and risk.
Overall, more than half of companies (51 percent) already have a central cloud
team. Enterprises have an even stronger need for centralized governancewithin their larger organizations: 66 percent of enterprises already have acentral cloud team, with another 21 percent planning one. Even among SMBs,
31 percent have a central cloud team, with 25 percent planning one.

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Enterprise central IT focuses on managing and optimizing cloud costs.
This year we saw the top responsibility of central cloud teams shift tomanaging cloud costs (68 percent in 2019 vs. 64 percent in 2018). Central IT
teams also are focused on governance, including advising on applications
appropriate for cloud (62 percent), setting policies (59 percent), and using
automated cloud policies (57 percent).
However, there is now a significant gap between the view of central IT and thatof the business units they support. Respondents in business units within theenterprise are less likely overall to delegate authority to central IT.

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20Central IT teams take on cloud costs, while business units own the budgets.
Within the enterprise, we see that most of the responsibility to govern
and optimize cloud costs is falling on the central cloud team as well as theinfrastructure and operations team. Business units are more likely to own
cloud budgets. IT finance is taking an equal role to chargeback cloud costs.
The software asset management and vendor management teams are not yet
taking a significant role in managing cloud spend.

Top cloud challenges in 2019 are governance, expertise, and spend.
In 2019, the top 5 challenges are all very close in how often they are cited byrespondents. Governance, expertise, spend, security, and compliance are achallenge for between 76 and 79 percent of respondents.
Overall, the complexity of larger enterprises translates into a higher level ofchallenges across the board, with cloud spend and cloud governance tied forthe top challenge at 84 percent.

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under a Creative Commons Attribution 4.0 International License.

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Enterprise cloud challenges grow year over year.
Even though enterprises are becoming more experienced with cloud, the risein cloud use is leading to an increase in enterprise cloud challenges aroundmanaging cloud spend (84 percent in 2019 vs. 80 percent in 2018), governance(84 percent in 2019 vs. 77 percent in 2018), compliance (79 percent in 2019 vs.
74 percent in 2018), and managing the use of multiple clouds (76 percent in2019 vs. 68 percent in 2018).

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under a Creative Commons Attribution 4.0 International License.

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As companies become more experienced with cloud, the top challenge shifts.
While cloud spend and governance remain in the top three challenges for
all maturity levels, expertise and cloud migration challenges decrease ascompanies gain more experience with cloud.

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under a Creative Commons Attribution 4.0 International License.

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Cost implications of software licenses in public cloud is a top challenge.
Organizations are also becoming aware of the challenges of managing
software licenses that are running in public cloud environments. The top
challenges are understanding the cost implications of licensed software
running in the cloud (52 percent), the complexity of license rules in public
cloud (41 percent), and ensuring that they are following the rules (42 percent).

Optimizing cloud costs is the top initiative for third year in a row
and growing.
As cloud use and cloud spend grow, 64 percent of organizations will be focusedon optimizing their existing use of cloud in order to save money in 2019, ascompared to 58 percent in 2018. The second-place initiative for 2019 is moving
more workloads to cloud (58 percent), up from 51 percent in 2018.

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under a Creative Commons Attribution 4.0 International License.

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As cloud users become more mature, optimizing cloud spend becomeseven more important. It is cited by 53 percent of beginner, 70 percent ofintermediate, and 76 percent of advanced respondents.

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Cloud users underestimate their wasted cloud spend.
Even though managing cloud costs is a top challenge and a top initiative,
cloud users continue to underestimate the amount of wasted cloud spend.
Respondents estimated 27 percent waste, while Flexera has measured actual
waste at 35 percent.

Cloud users are not doing all they can to optimize cloud spend.
Despite an increased focus on cloud cost management, only a minority ofcompanies have begun to implement automated policies to optimize cloudcosts, such as shutting down unused workloads or rightsizing instances. In
addition, very little progress has been made from 2018 to 2019 in increasing
the use of automated policies. This represents an opportunity for increased
efficiency and increased savings, since manual policies are difficult to monitor
and enforce.

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under a Creative Commons Attribution 4.0 International License.

26

In addition, cloud users are not taking advantage of all the available discounts
from cloud providers. Fewer than half of AWS users (47 percent) leverage
Reserved Instances, and only 23 percent of Azure users do so.

Container use is up, and Kubernetes use is skyrocketing.
With the steep rise in the use of containers, Docker continues to show strong
growth. Overall Docker adoption increased to 57 percent from 49 percent lastyear. Kubernetes, a container orchestration tool that leverages Docker, saw thefastest growth, growing from 27 percent to 48 percent adoption.
Many users also choose container-as-a-service offerings from the public cloudproviders. The AWS container service (ECS/EKS) had 44 percent adoption in2019 (flat from 2018). Azure Container Service adoption reached 28 percent (upfrom 20 percent in 2018), and Google Container Engine grew slightly to reachadoption of 15 percent.

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under a Creative Commons Attribution 4.0 International License.

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Enterprise use of containers and Kubernetes is becoming ubiquitous, withDocker reaching 66 percent adoption among larger companies and Kubernetes
reaching 60 percent. SMB use of containers is lower, but they show strong
interest in using Kubernetes in the future, with 28 percent planning to use
it on top of the 32 percent using it today.

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28

Terraform growing fastest among configuration tools.
As part of adopting DevOps processes, companies often choose to implement
configuration management tools that allow them to standardize and automate
deployment and configuration of servers and applications. Among all
respondents, Ansible now leads with 41 percent adoption (up from 36 percent
in 2018). Puppet and Chef are tied with 37 percent adoption each. While infourth place, Terraform showed the strongest growth, expanding from 20
percent in 2018 to 31 percent in 2019.

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Overall, the use of configuration tools is higher among enterprises. Ansible
holds the top position among both enterprise (53 percent) and SMB
organizations (26 percent). Chef and Puppet tie for second position inenterprises (50 percent), while Terraform is in second position (22 percent)for SMBs.

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© 2019 Flexera. All rights reserved. This work by Flexera is licensed
under a Creative Commons Attribution 4.0 International License.

31Both Public and Private Cloud Adoption Grows
We asked respondents to tell us which clouds they were using and whether
they were running applications in cloud, experimenting with cloud, planning
to use cloud, or had no plans to use cloud. Most respondents are using morethan one cloud, so totals will add up to more than 100 percent.
It’s important to note that adoption (the percentage of respondents who use aparticular cloud) is only one of the factors that influences revenue growth forthe cloud provider. Other factors include the number of VMs running as well asother cloud services being used.
Azure continues to grow quickly and reduce the AWS lead, especiallyamong enterprises.
In 2019, AWS continues to lead in public cloud adoption, but adoption of otherpublic clouds is growing more quickly. Azure especially is now nipping at theheels of AWS, especially in larger companies.
Overall Azure adoption grew from 45 to 52 percent to narrow the gap with
AWS. As a result, Azure adoption has now reached 85 percent of AWS adoption,
up from 70 percent last year.
Google maintained its third-place position, increasing slightly from 18 to
19 percent adoption. VMware Cloud on AWS moved up to fourth position thisyear, increasing to 12 percent from 8 percent in 2018, a growth rate of
50 percent.
We can also gauge interest and potential for future adoption by measuring
respondents who are experimenting or planning to use particular clouds. This
year there was a higher percentage of respondents experimenting or planning
to use Google (36 percent) versus other clouds. This indicates a potential for
Google to accelerate adoption in future years as the respondents’ experiments
and plans come to fruition.

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32

Among enterprises, Azure increased adoption slightly from 58 percent to 60
percent, while AWS adoption in this group was relatively flat at 67 percent.
This puts Azure with 89 percent of AWS’ adoption level based on the number of
respondents using each cloud.
Among other cloud providers included in the survey last year, all saw increased
adoption this year, with VMware Cloud on AWS growing from 12 to 18 percent(50 percent growth rate), Oracle growing from 10 to 16 percent (60 percent
growth rate), IBM Cloud from 15 to 18 percent (20 percent growth rate), andAlibaba from 2 to 4 percent (100 percent growth rate).
Enterprise respondents with future projects (the combination ofexperimenting and planning to use) show the most interest in Google(41 percent).

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33

Among SMBs, AWS adoption decreased from 60 to 53 percent, while Azure
grew from 32 to 41 percent (28 percent growth rate). Azure is at just over threequarters the adoption of AWS (77 percent) among these smaller companies.
Google and IBM were flat, while Oracle, Alibaba, and VMware Cloud on AWS
grew among the smaller companies.
SMB respondents with future projects (the combination of experimenting
and planning to use) show the most interest in Google (30 percent), followed
closely by AWS (29 percent).

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34

AWS and Google get stronger with more mature users.
The cloud maturity of an organization typically correlates to the length oftime it has been using cloud. That correlation is due to the time it takes tobuild cloud expertise and create processes and best practices across theorganization. Because AWS was the first large-scale cloud provider, AWS isused more frequently by advanced (i.e., longer-term) cloud users. Across all
respondents, 72 percent of advanced cloud users leverage AWS vs. 57 percent
using Azure.
Google sees significantly stronger adoption when users are advanced (24percent) versus beginner (9 percent adoption).

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35

© 2019 Flexera. All rights reserved. This work by Flexera is licensed
under a Creative Commons Attribution 4.0 International License.

36Serverless is the top-growing extended cloud service.
A significant number of public cloud users are now leveraging services beyond
just the basic compute, storage, and network services. Among the mostpopular extended services, relational DBaaS and push notifications continue
to hold the top two positions in 2019, while data warehouse moved up
significantly to the third position.
Future interest can be gauged by looking at the respondents who areexperimenting with or plan to use a particular service. Machine learninggarners the top scores for future interest. While only 26 percent currently use
machine learning, 48 percent are considering it for the future. Just behind is
IoT (41 percent) as well as container-as-a-service and serverless (39 percent).

Year over year, serverless was the top-growing extended cloud service for thesecond year in a row, with a 50 percent increase over 2018 (24 to 36 percent
adoption). Stream processing was tied for fastest growing, with an increase
from 20 to 30 percent adoption. Machine learning, container-as-a-service, and
IoT were the next fastest growing.

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37

Among enterprises, relational DBaaS (60 percent), data warehouse (50percent), and push notifications (50 percent) were also in the top threepositions, while container-as-a-service was fourth (48 percent). Machinelearning has the highest interest for future use, with 48 percent experimenting
with or planning to use it.

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under a Creative Commons Attribution 4.0 International License.

38

Among SMBs, PaaS services are used less than in enterprises. Relational DBaaS(43 percent), push notifications (34 percent), and queuing (31 percent) werein the top three positions. Machine learning has the highest interest for futureuse, with 41 percent experimenting with or planning to use it.

Unsurprisingly, as organizations mature, they are more likely to use these
extended cloud services. Relational DBaaS, though, shows a significant jump
between beginner and intermediate users, growing 150 percent in adoption
from 23 percent to 58 percent of respondents.

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39

Private cloud adoption increased slowly.
The 2019 survey shows that adoption of private cloud increased slowly acrossmost providers except for VMware vSphere.
Overall, VMware vSphere continues to lead with 50 percent adoption, flat fromlast year. This includes respondents who view their vSphere environment asa private cloud — whether or not it meets the accepted definition of cloudcomputing. OpenStack (28 percent), VMware vCloud Director (27 percent),
Microsoft System Center (25 percent), and bare metal cloud (24 percent)all showed small increases over 2018. Azure Stack was in the sixth slot, butshowed the highest growth (22 percent in 2019 versus 17 percent in 2018). AWS
Outpost was announced in late 2018 and showed strong adoption out of thegate (12 percent) and strong interest for future use (29 percent).

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Among enterprises, vSphere leads with 61 percent adoption, VMware vCloud
Director takes the second slot at 37 percent adoption, and OpenStack comesin third with 36 percent adoption. The private cloud options from the public
cloud providers (Azure Stack and AWS Outpost) rank lower in current usage byenterprises, but lead the way among respondents who are experimenting withand planning to use these technologies (AWS Outpost at 32 percent and Azure
Stack at 29 percent).

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under a Creative Commons Attribution 4.0 International License.

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Private cloud adoption by smaller organizations is lower overall than forenterprises. While VMware vSphere (35 percent) is still the top option,
OpenStack takes second place in this group, with 17 percent of respondents
already running applications. This year Azure Stack and AWS Outpost continue
to have mindshare, with 25 percent of SMBs experimenting or planning to use
each of these technologies.
Year over year, Azure Stack showed the largest increase from 10 to 14 percent.

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vSphere has most users with 1,000+ VMs, but AWS leads in 100+ VMs; Azure
grows footprint faster.
The adoption numbers above indicate the number of respondents that are
running any workloads in a particular cloud. However, it’s also important tolook at the number of workloads or VMs that are running in each cloud. The
following charts show the number of VMs being run across the top public andprivate clouds.

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under a Creative Commons Attribution 4.0 International License.

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Among all respondents, 13 percent have more than 1,000+ VMs in vSphere, ascompared to 11 percent in AWS and 6 percent in Azure. However, AWS leads in
respondents with more than 100 VMs, (33 percent for AWS vs. 27 percent for
VMware and 25 percent for Azure).

Year over year, the number of workloads also grew for most cloud providers.
Azure showed the largest increase in the percentage of users with morethan 100 VMs, from 17 percent in 2018 to 25 percent in 2019. AWS grew thepercentage of users with more than 100 VMs from 31 percent in 2018 to 33
percent in 2019. OpenStack, Google, and IBM all saw small increases in thenumber of respondents with more than 100 workloads.

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Among enterprises, which have larger numbers of workloads, 20 percent havemore than 1,000 VMs in VMware vSphere, as compared to 17 percent in AWS
and 10 percent in Azure. AWS had the highest percentage with 100+ VMs with
47 percent, compared to 38 percent for VMware vSphere and Azure.

Among SMBs, VMware vSphere led among those respondents with more than
1,000 VMs (4 percent). However, AWS led VMware vSphere in the number of
respondents running more than 100 VMs (13 percent vs. 12 percent).

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Summary: As Public Cloud Grows, Organizations Focus
on Governing Costs
The 2019 State of the Cloud Survey shows that multi-cloud remains thepreferred strategy. Almost every organization is using cloud at some level,with both public and private cloud adoption growing. On average, companies
are using or experimenting with nearly five public and private clouds, with amajority of workloads now running in cloud.
However, public cloud is increasingly becoming the top focus among
enterprises and, as a result, public cloud use is growing more quickly — withspend growing at three times the rate of private cloud usage, an increasing
number of cloud workloads, and an increase in the number of public cloud
PaaS services used.
Cloud governance and costs were top challenges for cloud users of all
maturity levels. As a result, optimizing existing cloud use for cost savings
continues to be the top initiative in 2019 for the third year in a row as evenmore organizations are turning their efforts to cost optimization. There is
still much room for improvement, as 35 percent of cloud bills are wasted due
to inefficiencies, and few organizations have yet implemented automatedpolicies to help address these issues.
Enterprise central IT teams are taking a stronger role in cloud adoption,
creating central cloud teams or a Center of Excellence. The role of these central
teams is focused on cost management and governance, as well as advisingbusiness units on workloads that should move to cloud. Cloud teams andinfrastructure and operations groups are still shouldering the lion’s shareof the work for managing cloud costs, but finance teams are taking a role inchargeback of cloud costs and business units are often owning cloud budgets.

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The use of DevOps continues to increase, driving further adoption of container
and configuration tools. Docker grew again this year, and Kubernetes use
skyrocketed. Many users are also adopting container-as-a-service offerings
from AWS, Azure, and Google.
AWS still leads in public cloud adoption but Azure continues to grow more
quickly and gains ground, especially with enterprise customers. Google
maintains the third position, and VMware Cloud on AWS moved into fourth
position ahead of IBM. Adoption of Oracle Cloud is still small, but isgrowing well.
Cloud provider revenue is driven not just by adoption (percentage ofcompanies using the cloud), but also the number of workloads (VMs)
deployed, and the use of other extended cloud services. Respondents continue
to run more VMs in AWS than in other public clouds. However, Azure is growing
quickly here as well to reduce AWS’s lead.
VMware vSphere continues to lead as a private cloud option (both in adoption
and number of VMs) followed by OpenStack and VMware vCloud Director. Two
private cloud technologies from public cloud providers, Azure Stack and AWS
Outpost, are growing more strongly and generate the strongest interest levelfor future use.

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under a Creative Commons Attribution 4.0 International License.

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Gartner Magic Quadrant for Cloud Management
Platforms 2019
Gartner conducted its first-ever Magic Quadrant evaluation of cloud
management platforms (CMPs) in 2019. IT and infrastructure and operations
leaders who need to provide automation, governance, and self-service
brokering across multi-cloud resources as well as business unit leaders
responsible for managing cloud costs often find CMPs to be an
indispensable solution.
Gartner evaluates the top CMP vendors on a variety of criteria including:• Provisioning and orchestration.
• Service request management.
• Inventory and classification.
• Monitoring and analytics.
• Cost management and resource optimization.
• Cloud migration and backup and disaster recovery.
• Identity, security, and compliance.

Download Report

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under a Creative Commons Attribution 4.0 International License.

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About RightScale from Flexera

The Flexera acquisition of RightScale is an investment in the continued
development of RightScale’s proven multi-cloud management and cost
optimization solutions, which complement Flexera’s software, hardware, and
SaaS optimization suite that helps businesses maximize their technology
investments and reduce risk. The RightScale Cloud Management Platform
helps enterprises to accelerate delivery of cloud-based applications thatengage customers and drive top-line revenue while optimizing cloud usage
to reduce risk and costs. It is a comprehensive solution that enables IT
organizations to deliver instant access to a portfolio of public, private, andhybrid cloud services across business units and development teams while
maintaining enterprise control. RightScale Optima is a collaborative cloud
cost management and optimization solution that enables organizations totake automated action to reduce cloud spend across the enterprise. In 2019,
RightScale from Flexera was recognized as a leader in the Gartner Magic
Quadrant for Cloud Management Platforms.

Contact us for more information or a demo:+1 800.809.5659 | +44 870.871.1111
sales@flexera.com
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under a Creative Commons Attribution 4.0 International License.

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Inform IT. Transform IT.
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under a Creative Commons Attribution 4.0 International License.

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