Oracle report finds multicloud strategy the new reality

New research commissioned by Oracle has found that IT leaders use multiple cloud providers to benefit from reduced costs and more control over their data

Multicloud is the new reality in enterprise technology according to a study commissioned by Oracle Cloud Infrastructure, with 98% of enterprises surveyed using or planning to use at least two cloud infrastructure providers and 31% using four or more.

The study, from 451 Research, part of S&P Global Market Intelligence, collected information from 1,500 respondents at enterprises—organisations 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 organisation and found that almost every cloud journey is now becoming a multicloud journey. 

Cloud usage rises as enterprises seek increased agility and efficiency

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% of respondents agreed that the COVID-19 pandemic has been a strong driver of greater interest and investment in cloud technology. As organisations 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 organisations 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:

Almost every cloud journey is multicloud

  • 98% of enterprises surveyed are using or plan to use at least two cloud infrastructure providers and 31% are using four or more.
  • 96% reported they are using or plan to use at least two cloud application providers (Software-as-a-Service), with 45% 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 organisation.

Data sovereignty and cost optimisation are driving demand for multicloud strategies

  • The top two drivers of multicloud strategies in enterprises are data sovereignty (41%) and cost optimisation (40%).
  • Other drivers of multicloud strategies include business agility and innovation (30%), best-of-breed cloud services and applications (25%) and cloud vendor lock-in concerns (25%).
  • 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.

Enterprise organisations are proactively planning multicloud strategies for the future

  • Data redundancy (54%) is the most anticipated future use case, followed by data mobility (49%) and cost optimization across public clouds (42%).
  • IT departments also plan to use multicloud strategies for risk mitigation for the entire IT environment (40%) and geographic expansion or global service delivery (38%).
  • The fact that IT departments are planning multicloud strategies shows that they see multicloud as a way to get ahead of their technology needs, instead of simply a tactic to react to crises.

“Multicloud is here, whether enterprises are ready for it or not. Business mergers can turn even the most stable of IT strategies into a multicloud environment overnight,” said Leo Leung, vice president, OCI and Oracle Technology. “Whether IT teams are starting their multicloud plans from scratch or already have an implementation in place but want to add best-of-breed cloud services, OCI’s distributed cloud can help.

"With the recent introduction of MySQL HeatWave on AWS and Oracle Database Service for Microsoft Azure, customers have even more capabilities to help their multicloud strategies succeed.”

Read the report here.

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