Survey Finds North American Enterprises All-In on Hyperscalers

When it comes to cloud, enterprises prefer hyperscalers to second-tier providers.


February 6, 2020

3 Min Read
Google data center under construction in Clarksville, Tennessee
Google data center under construction in Clarksville, TennesseeAlphabet/Google/Aerial Innovations

The following is based on a recent survey report by the cloud and data center analyst team at IHS Markit | Technology, part of the Informa Tech family of brands, a family that includes Data Center Knowledge. The original note’s author is Devan Adams, a principal analyst at IHS Markit. The survey report is available in full to IHS subscribers.

A total of 59 percent of North American enterprises sourced their cloud services from hyperscalers in 2019, a sum that will rise to 65 percent in 2021, according to survey results from IHS Markit | Technology, now a part of Informa Tech.

The survey revealed that enterprises are relying more on hyperscalers for cloud services than on smaller second-tier players. Respondents also noted that public clouds are used extensively by enterprises today, while multi-cloud adoption is expected to see the most growth in the future.


Off-premises private clouds will see an increase in adoption, with 37 percent of respondents expecting to use them in 2021, up from 28 percent in 2019. On-premises private cloud adoption is set to rise to 54 percent of respondents, up from 48 percent during the same time period.

Off-premises hybrid cloud utilization will expand as well, with 36 percent of respondents indicating they will use such an approach in 2021, up from 25 percent in 2019. Hybrid cloud adoption will increase to 68 percent, up from 57 percent during the same time period.

Public clouds will have the smallest increase in adoption, with a total of 71 percent in 2021, up from 66 percent in 2019.

ihs nam enterprise cloud use chart 1.png

ihs nam enterprise cloud use chart 1_0

So what?

Devan Adams, principal analyst, IHS Markit | Technology:

“More enterprise users are adopting architectures that allow them to run various services across multiple cloud environments. This approach requires them to find a provider who can deliver a holistic view of all their data and services.

“Cloud service providers (CSPs) are seeing growing demand from enterprises that require a single solution for their on- and off-premises needs. This is prompting CSPs to add capabilities to their cloud offerings to make them more interoperable with services from other cloud partners and competitors. As a result, more cloud services are being offered by different providers via integrated solutions.”

On multi-cloud and hyperscalers:

“Based on the survey results, we expect enterprises to continue using off-premises cloud services from numerous specialized players to address their specific business needs. And it’s clear that users will look to familiar hyperscale providers as their first choices when migrating their services to the cloud.”

ihs nam enterprise cloud use chart 2.png

ihs nam enterprise cloud use chart 2

The annual Cloud Service Strategies & Leadership North American Enterprise Survey report is a component of the Cloud & Colocation Intelligence Service, which also includes the Cloud & Colocation Services Market Tracker, the Cloud & Colocation Data Center Building Tracker and the upcoming Cloud and Colocation Data Center CapEx Market Tracker.

Edited by Yevgeniy Sverdlik

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