VMware Research and Insights

Plotting the Path to the Digital-First Enterprise

Business apps are driving more revenue than ever, with 90% of enterprises reporting at an increase revenue growth from apps in the past year. No wonder IT leaders have their sights set on running apps in the cloud.

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VMware FY23 Q1 Executive Pulse, April 2022

Three cloud-centric strategies are on the enterprise IT agenda.

Smart
Migration

Migrate all suitable apps from the data center to the cloud

Multi-Cloud Management

Achieve consistency, visibility and control over all deployed workloads

Cloud Native
Apps

Embrace containers and Kubernetes for all net-new apps

These long-term, complex strategies may take more than one year to complete. Some organizations may never complete them.

Across industries, most enterprises are pursuing at least one of the three strategies.

82%

are migrating apps to cloud

Modernize RAN to Monetize 5G Services
74%

are taking on multi-cloud management

Leader in True Multi-Cloud Observability
70%

are building cloud native apps

Modernize RAN to Monetize 5G Services

44% are tackling all three strategies this year

VMware FY23 Q1 Executive Pulse, April 2022

Charting the evolution of these cloud strategies

See what’s fueling the enterprise appetite for each of these strategies.

Smart Migration

48%

of workloads will be deployed to the public cloud over the next three years

Workloads perform better in the cloud

Running critical apps in the cloud delivers greater resilience, reliability, scalability and overall performance.

Multi-Cloud Management

83%

of enterprises are deploying apps across more clouds and environments compared to 2021

In complex cloud environments, consistency is key

With apps deployed to private cloud, public cloud, edge and colocation, the ability to manage apps consistently and securely across clouds is key.

Cloud Native Apps

83%

of net-new enterprise apps are being built with modern app frameworks

Developers thrive when building cloud native apps

Containers and Kubernetes give developers a more reliable, secure and efficient experience – helping to boost creativity and output when building net-new apps.

VMware FY23 Workloads Tracker, January 2022

Enterprises are making good progress toward their cloud goals.

Smart Migration

Already started

42

Starting in 2022

57

On hold or paused

1

Multi-Cloud Management

This may be the most difficult strategy to complete. Some organizations are in perpetual catch-up mode as they add new cloud platforms.

Already started

56

Starting in 2022

42

On hold or paused

2

Cloud Native Apps

Already started

55

Starting in 2022

44

On hold or paused

1
VMware FY23 Q1 Executive Pulse, April 2022

Cloud strategies are being held back by various roadblocks.

Cloud strategies are being held back by various roadblocks.

  1. Smart Migration
  2. Multi-Cloud Management
  3. Cloud Native Apps

Roadblocks as ranked by IT leaders:

  • 1 Security concerns for cloud-based apps
  • 2 Difficulty migrating remaining legacy apps
  • 3 Managing migration to multiple platforms
  • 4 Regulatory or industry compliance post-migration
  • 5 Specialized skills required to manage public clouds

Roadblocks as ranked by IT leaders:

  • 1 Increased complexity of cloud-specific tools
  • 2 Incompatibility between data center and public clouds
  • 3 Risks related to security, data or privacy
  • 4 Increased or unplanned costs
  • 5 Specialized skills required to manage public clouds

Roadblocks as ranked by IT leaders:

  • 1 Security concerns for cloud-native apps
  • 2 Technical skills gap to manage containers and Kubernetes
  • 3 Developer teams are not using cloud-native frameworks
  • 4 Operations teams are not using cloud-native frameworks
  • 5 Lack of cloud infrastructure
VMware FY23 Q1 Executive Pulse, April 2022

Across the strategies, three challenges appear repeatedly.

Data security

68%

say security of data shared between clouds is as complex or more complex than previous years

Incompatible systems

of those using multiple public clouds say all clouds should ideally operate as one cloud

Skills gaps

46%

say cloud infrastructure is more complex in 2022, with each cloud and app platform requiring a different set of skills

VMware FY23 Q1 Executive Pulse, April 2022
VMware FY22 Q4 Executive Pulse, January 2022

Technology will help solve today's challenges and accelerate progress with cloud strategies.

See what will help IT leaders overcome each roadblock.

Select a number

IT leaders want best practices and training for cloud native apps
IT leaders want simple tools to manage apps across platforms
IT leaders want cloud-agnostic management that abstracts provider-specific nuances
Smart Migration
Multi-Cloud Management
Cloud Native Apps

Discover how VMware Cross-Cloud services help you:

Build & operate cloud native apps

Automate & optimize apps & clouds

Run enterprise apps anywhere

VMware FY23 Q1 Executive Pulse, April 2022

Technology isn’t the only driver of success. IT leaders have their sights set on process change, too.

Expanded executive sponsorship of cloud strategies
Proof of new revenue generation opportunities
Improved collaboration between departments and teams
VMware FY23 Q1 Executive Pulse, April 2022

Explore how VMware Cross-Cloud™ services can help your organization achieve more with its cloud initiatives

Background and methodology

We surveyed:
20%

Countries

2,616%

Organizations

350%

Software developers

751%

C-Suite technology decision makers (CIO, CTO, CISO, etc.)

  1. Q1 FY23 Executive Pulse
  2. Q4 FY22 Executive Pulse
  3. FY23 Workloads Tracker

The VMware Executive Pulse Q1 study was fielded between March 2022 and April 2022. The study is fielded each quarter by Qualtrics.

Custom research was conducted in the Americas (Argentina, Brazil, Canada, Mexico, U.S.), Europe (Belgium, France, Germany, Italy, the Netherlands, U.K., Spain, Sweden, Russia) and Asia Pacific (Australia, China, India, Japan, Singapore) using web-based surveys.

Responses were collected from 459 C-Suite and senior technology decision-maker respondents involved in app and infrastructure platform decisions, with a balance of VMware and non-VMware customers. The sample targeted 48% commercial (1,000-4,999 employees), and 52% large enterprise (5,000+ employees).

The VMware Executive Pulse Q4 study was fielded between December 2021 and January 2022. The study is fielded each quarter by Qualtrics.

Custom research was conducted in the Americas (Argentina, Brazil, Canada, Mexico, U.S.), Europe (Belgium, France, Germany, Italy, the Netherlands, U.K., Spain, Sweden, Russia) and Asia Pacific (Australia, China, India, Japan, Singapore) using web-based surveys.

Responses were collected from 457 C-Suite and senior technology decision-maker respondents involved in app and infrastructure platform decisions, with a balance of 37% VMware and 63% non-VMware customers. The sample targeted 52% commercial (1,000-4,999 employees), and 48% large enterprise (5,000+ employees).

The VMware FY23 Workloads Tracker study was fielded on behalf of VMware by Management Insight Technologies between October 2021 and January 2022.

The custom research was conducted in North America (U.S. and Canada), Western Europe (U.K., Germany and France) and APAC (Australia, New Zealand, Japan, India and China) using a combination of web and telephone interviews.

Responses were collected from 1,700 IT leaders, IT decision-makers, and developers who specialize in decision making for application workloads and infrastructure deployments. The sample targeted 10% SMB (2-999 employees), 30% commercial (1,000-4,999 employees), and 60% enterprise (5,000+ employees)