- Cloud revenue went from 70% to 200% and contrarily, on-premises ranged from 4% to 55%.
- The reports talk about a step-change increase in cloud adoption across every economy and industry.
BatteryVentures’ State of the OpenCloud 2022 report examines the landscape of open-source software and cloud infrastructure and brings best operational practices for cloud companies.
The Cloud giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have demonstrated major growth durability, and profit at massive scale, despite the current macroeconomic environment. Billion-dollar businesses like Databricks (a Battery portfolio company) and Snowflake have earned a lot as cloud vendors, and there is still a lot of space to grow as digital transformation accelerates in every industry and more workloads goes to the cloud.
Rising Cloud Technology
Throughout the four main infrastructure software companies such as MongoDB, Elastic, Splunk, and Confluent, cloud revenue CAGR was least as 72% and maximum as 200% going from 2018 to 2022. On a contrary, it was not so within on-premises and ranged from 4% to 55%.
BatteryVenture also predicts that cloud spending is overall 25% of USD 919 billion overall enterprise IT market spend in 2022, a proportion that will surely increase in the coming months and years to come seeing the potential of market disruption. In the high-inflation environment, Battery says that will see a step change increase in cloud adoption across every industry and economy.
BatteryVentures 2022 OpenCloud report relies on publicly available data from CapIQ, Pitchbook, Gartner, the U.S. Bureau of Labor Statistics, and company earnings reports.
“Many cloud companies are demonstrating robust growth and even profitability as the broader IT market remains relatively under-penetrated by cloud; there’s still plenty of room to grow,” said Danel Dayan, Battery vice president and one of the report’s authors.
“While it remains to be seen what will happen in the next few months in the technology industry, given the market downturn, we are confident that the cloud, and open-source software, will soon transform industries in ways we have never seen before,” Dayan added.