Although AWS has enjoyed colossal scale growth, as CNBC reports in an interview with Jim Cramer CEO Adam Selipsky, he believes it is still only day one, that only 10% of IT has moved to the Cloud thus far.
TechCrunch reports how the total XaaS market was worth $126 billion for Q1 2022, up 26% over the prior year, and that this will double again in three years. 2021 marked a milestone moment when spending on Cloud surpassed that of traditional on-premise IT. AWS leads the market and in some segments, like UK Government, is utterly dominating the category.
VentureBeat highlights and explores the opportunity for AWS partners and factors that explain how to achieve competitive advantage and differentiation.
They describe how due to the relatively scarce talent and cloud platform knowledge required 68% of organizations using AWS report they plan to become more reliant on cloud managed or professional services over the next 12 months alone.
59% of respondents report using AWS to increase the speed and agility of launching applications, the top single driver for organizations’ selection of AWS. Other key factors include AWS’ broad range of cloud services (a driver for 48% of organizations using AWS), the number of regions and availability zones supported (44%) and AWS’s utility pricing model (41%).
When it comes to the AWS challenges that organizations seek outside AWS expertise and services to alleviate:
- 41% of respondents named cloud performance optimization and cost.
- 39% cited building cloud-native applications.
- 38% reported struggling with migrations from legacy infrastructure to AWS.
Other cloud modernization goals that will likely continue to accelerate — such as AI/ML initiatives on AWS and implementing data lakes — were also cited as challenges.
Even organizations self-describing as sophisticated Amazon Web Services users are actually even more driven to rely on cloud managed and professional services.
Among those running more than 80% of their workloads on AWS, 79% plan to rely more heavily on cloud managed services in the next 12 months. Those identifying as being “technology early adopters” show the same eagerness, with 79% of those respondents looking to increase their reliance on external AWS help.