Cloud Adoption Rising, While On-Prem Holds Steady

Oct 01, 2020

Cloud Adoption Rising, While On-Prem Holds Steady

BY Andrew Burton

MSP Best Practices

We asked more than 1,800 global managed service providers (MSPs) to talk to us about cloud trends they’re seeing in our 2020 State of the MSP Report. Here’s what they had to say.

It appears on-prem may be shifting from the driver’s seat to the backseat with 57% of MSPs expecting the use of on-premises servers for critical applications to decline over the next three years.

The State of the MSP Report found that adoption of cloud services among MSPs is growing, especially Microsoft services. Respondents said that 62% of their clients are currently using Microsoft 365 cloud services and they expect that 70% will be using them within two years. Windows server and desktop virtualization implementation is rising at an even faster rate, although a smaller percentage of clients are currently using those services.

Many MSPs expect to move critical client workloads off local hardware now or in the near term. 38% of respondents said that they expect a moderate decrease in on-premises servers, and 19% expect to see a significant decrease over the next three years.

44% said they do not maintain a data center, instead opting to use a cloud provider for offsite compute and storage. Just over half of respondents said they use Microsoft Azure, followed by Amazon Web Services and Google Cloud.

But is on-prem hardware really going away? Not so fast: 43% of MSPs expect on-premises workloads to stay the same or even increase in three years’ time.

What’s holding mass adoption of cloud up? 80% of MSPs pointed to various cost concerns as cloud migration challenges.

Datto's Global State of the MSP Report

Datto surveyed 1,800+ managed service providers (MSPs) worldwide to learn about who they are and what they care about.

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