Microsoft: Companies aren’t holding back on cloud spending
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One of Microsoft’s most senior cloud executives claims he “hasn’t seen organizations slowing their efforts to move software programs to the cloud in recent months.”
Scott Guthrie, who serves as EVP of Microsoft’s Cloud and AI division, said: CNBC that he has not “seen that the current situation is causing people to pause the cloud”.
Customers purchasing more public cloud services will almost certainly bring good luck to Microsoft’s cloud hosting business; According to Flexera’s latest State of the Cloud report, 80% of enterprises are already using Microsoft Azure (opens in new tab).
What drives adoption?
Guthrie said the surge in energy costs could push people toward cloud computing, much like the onset of the pandemic and the transition to hybrid work.
“Do we see people accelerating to the cloud due to the energy crisis? I think the answer is definitely yes,” he told CNBC.
“If you think about the current situation in Europe right now where energy prices are rising dramatically, if you can reduce your on-premises workloads and move them quickly to our cloud, you can reduce the power consumption you need and that translates itself in real economic savings.”
Guthrie is certainly not the only Microsoft executive who seems quite confident in the future of Azure. Microsoft’s chief financial officer, Amy Hood, told analysts that Azure revenue will grow a healthy 43% in constant currency in the second quarter of 2022.
And it’s not just Microsoft that has an optimistic view of how energy costs will affect the future of IT pending.
Spiceworks Ziff Davis’ 2023 State of IT Report (opens in new tab) found that 51% of companies said they would increase their IT budgets by 2023, despite 83% saying they were concerned about a potential recession in the next year, highlighting energy costs as one of the reasons.
- Do you want to move away from on-premises solutions to save energy? Check out our guide to the best cloud storage
Via CNBC (opens in new tab)