Artificial Intelligence Reaches the Cloud
KPMG Study: 97% of Cloud-Using Companies Rely on AI Services from Cloud Providers
The era of traditional data centers appears to be gradually waning: only 26% of companies still use them for their AI solutions, according to findings from KPMG’s “Cloud Monitor 2024,” which surveyed over 500 German companies on their cloud usage.
Security and Performance Are Top Priorities
For companies, performance and stability (70%) and trust in security and compliance (69%) are key considerations when selecting a cloud provider. Public cloud users place a higher value on provider independence (62%) compared to companies using private clouds (50%) or hybrid models (52%). For hybrid cloud users, performance and security aspects of the provider hold even greater importance than for exclusive private or public cloud users. Additionally, the location of the data center matters: 58% of companies, as in the previous year, prefer data centers within EU jurisdictions.
Advantages of Cloud Adoption: Cost Optimization and ESG Considerations
Sixty-seven percent of companies report achieving significant IT cost savings through cloud use. However, there is a downside: 21% of large companies with 5,000 or more employees report increased IT costs due to cloud computing. Overall, 58% of companies spend half or more of their IT budget on cloud services, with this figure rising to 64% among large companies. Among German companies with 50 or more employees, 98% are now using the cloud. Most rely on hybrid cloud models that combine public and private cloud solutions.
Fifty-seven percent of these companies aim to enhance IT security through their cloud strategy, while nearly half prioritize digitalizing internal processes and optimizing costs. Additionally, 52% of companies pursue a cloud-first approach, and 23% aim to adopt a cloud-only strategy.
Environmental, Social, and Governance (ESG) Factors Gain Importance
ESG considerations are important or very important for 77% of companies when using the cloud. This figure rises to 84% for large companies with over 5,000 employees.
About the “KPMG Cloud Monitor”
This year’s Cloud Monitor data was gathered through computer-assisted web interviews (CAWI) conducted between June and July 2024. The sample includes 503 German companies with at least 50 employees. Detailed results can be downloaded at the link below: Cloud Monitor 2024 – Pre-order Now.
