Microsoft: Companies aren’t holding back on cloud spending

Skyrocketing energy costs could be feeding cloud adoption

When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

One ofMicrosoft’s most senior cloud executives claims he has “not seen organizations slow their efforts to move software programs to the cloud in the past few months”.

Scott Guthrie, who serves as EVP of Microsoft’s Cloud and AI division, toldCNBCthat he’s not “seen the current situation cause people to pause cloud”.

Customers buying more public cloud services will almost certainly be a spot of good fortune for Microsoft’scloud hostingoperation; 80% of enterprises are already using Microsoft Azure in some form, according to Flexera’s latestState of the Cloud report.

What’s driving adoption?

Guthrie said that the steep rise in energy costs may be pushing people towards cloud computing, in the same way that the initial onset of the pandemic and the move towards hybrid working did.

“Are we seeing people accelerate to the cloud because of the energy crisis? I think the answer is definitely yes,” he toldCNBC.

“If you think about the current situation in Europe right now, where the energy prices are going up dramatically, if you can reduce your workloads on-prem, and you can move it to our cloud quickly, you can reduce the power draw you need and that translates into real economic savings."

Guthrie certainly isn’t the only Microsoft executive who seems to be pretty confident in the future of Azure. Microsoft’s finance chief, Amy Hood, told analysts to expect Azure’s revenue to grow a healthy 43% in constant currency during the second quarter 2022.

Are you a pro? Subscribe to our newsletter

Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!

Microsoft Azure is taking its cloud into space>Microsoft is doing away with passwords for Azure Virtual Desktop>Our guide to the best cloud management tools

And it’s not just Microsoft that is taking an optimistic view on how energy costs will impact the future of IT pending.

Spiceworks Ziff Davis'2023 State of IT reportfound that 51% of the companies said that they would increase their IT budgets in 2023, despite 83% saying they are concerned about a potential recession in the next year, highlighting energy costs as one of the reasons for this.

Via CNBC

Will McCurdy has been writing about technology for over five years. He has a wide range of specialities including cybersecurity, fintech, cryptocurrencies, blockchain, cloud computing, payments, artificial intelligence, retail technology, and venture capital investment. He has previously written for AltFi, FStech, Retail Systems, and National Technology News and is an experienced podcast and webinar host, as well as an avid long-form feature writer.

HPE reveals critical security bug affecting networking access points

Cybersecurity is business survival and CISOs need to act now

Black Friday is three weeks away - here are 18 deals at Amazon you can shop today