Companies are planning to increase their spending on cloud-native services from AWS this year, according to a report released by 2nd Watch Thursday.
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Companies are planning to increase their spending on cloud-native services from AWS this year, according to a report released by 2nd Watch Thursday. The report shows that most businesses have adopted public cloud (71 percent), but for different benefits, and use a range of approaches to deploy public cloud services.
Nearly half of all businesses surveyed (48 percent) plan to spend at least 10 percent more on Amazon Kinesis, Amazon Redshift, Amazon Aurora, Amazon DynamoDB, and AWS Alexa in 2017 than they did in 2016, and two-thirds said they have or will soon achieve their expected return-on-investment (ROI) from their use.
2nd Watch surveyed business executives at U.S. companies with at least 1,000 employees about cloud-native AWS services for the report. It found that 35 percent plan to spend 10 to 20 percent more on the services in 2017, while a further 13 percent plan to spend 21-30 percent more.
The most common motivation for increasing spending on cloud-native services is the opportunity to increase revenue (31 percent), according to the report, followed by the opportunity to decrease costs (24 percent), the ability to offer better customer service (22 percent), and faster time-to-market for products and services (20 percent).
“The survey results are consistent with what we’re seeing and hearing from our customers. They are making new investments into these cloud-native services as payoff from previous investments show up, and they’re looking for new ways of creating value and driving down costs,” Jeff Aden, EVP of marketing and strategic business development and co-founder at 2nd Watch said in a statement. “As far as challenges go, the largest enterprises will continue seeking support from leading providers that are experts in public cloud and have experience migrating and managing enterprise workloads.”
Sales and marketing departments are most likely to benefit from new services according to 32 percent of respondents, followed by customer service (19 percent), and product development (18 percent). Asked how they would prepare to deploy new services, 29 said they would invest in database and storage technology, 27 percent would invest in software to support the new services, and 26 percent would add network gear and servers.
Thirty-four percent of respondents say a lack of internal technical skills is the biggest obstacle to new cloud service implementation, and 36 percent plan to use a third-party to implement them. Lack of budget resources is the top barrier for 28 percent of businesses, and lack of support is the top barrier for 21 percent.
AWS has worked to encourage technical skills related to public cloud and its cloud-native services, including by expanding its AWS Educate program in October.
2nd Watch is an AWS Migration Delivery Partner under the Migration Competency program announced by AWS in June.