Data Virtualization-as-a-Service Part 3: Data’s Gravity Is Now Cloud-Centric
These expert insights are a part of Solutions Review’s Thought Leaders, the resource hub of thought leadership content from InsightJam.com.
The third major force transforming data virtualization is that data’s gravity is now centered in the cloud. While this is a ten-year trend, according to IDC, 2022 was a turning point. For the first time, the cloud would surpass on-premises infrastructure as the primary location where operational data is stored, managed, and analyzed for 50% of Global 2000 organizations. More than half the data at more than half the big companies. That’s a transformation!
Additional sources confirm the cloud’s gravitational pull.
- SAP Cloud Revenue Overtakes On-Premises – Business Applications is one of the biggest drivers of cloud data growth. You can see this in SAP’s 2022 earnings reports9 that show SAP Cloud revenue bypassing on-premises for the first time.
- Snowflake Doubles Once Again – In 2022, leading cloud data and analytics vendor Snowflake10 doubled revenue with 106% growth. And that is on top of 124% and 174% in 2021 and 2020.
- Cloud Platform Mega-Vendors Thrive – With over $76.5 billion in revenue in 2022,11 AWS increased quarterly sales by approximately 34% year over year each quarter. Azure grew even faster, with its cloud services revenue growing 40% last year.
And the trend is accelerating. According to Gartner13, in 2023, worldwide end-user spending on public cloud services is forecasted to grow 20.7% to a total of $591.8 billion, up from 18.8% to $490.3 billion in 2022. That’s just over $100 billion in additional cloud spending.
