Study Shows Global Public Sector “Cloud Smart” Strategies Validated by COVID-19 Response
February 25 2021 - 9:00AM
Business Wire
Signaling Shift, 80% of Global Respondents Plan
to Continue Supporting Remote Workers Long Term
Nutanix (NASDAQ: NTNX), a leader in private cloud, hybrid and
multicloud computing, today announced the global public sector
industry findings of its third annual Enterprise Cloud Index
Report, measuring organizations’ plans for adopting private, hybrid
and public clouds. The findings point to a concentrated
modernization effort throughout the sector over the past few
months, with 70% of respondents saying COVID-19 has caused IT to be
viewed more strategically in their organizations. This
COVID-19-spurred push is especially notable, given that the public
sector has struggled with IT modernization efforts.
While public sector organizations have historically grappled
with regulations that deter telework, the pandemic forced them to
take necessary steps to securely support a remote workforce. Nearly
half (48%) of global public sector respondents, and 71% of U.S.
Federal Government respondents, said their organizations had no
employees working remotely one year ago. However, since the onset
of the pandemic, the sector has scaled its number of remote
workers, with only 15% and 11% of respondents reporting employing
zero remote workers today. In order to effectively support this
growing remote workforce, organizations have begun strategically
evaluating their cloud models – with more than three-fourths (82%)
of global public sector respondents identifying hybrid cloud as the
ideal IT operating model for their organization.
Other key findings of this year’s report include:
- Modernization is dependent on decommissioning legacy
architectures: In 2019, 53% of global public sector
organizations exclusively ran traditional, non-cloud-enabled
datacenters. In 2020, that percentage dropped to 22%. Organizations
are choosing to invest in private and public clouds instead, which
will be integrated into a cohesively managed hybrid environment.
Over the next five years, the public sector expects a
20-percentage-point drop in legacy datacenter installations and a
substantial 43-point increase in hybrid cloud deployments.
- Telework remains top-of-mind: 43% of public sector
respondents reported a direct increase in their public cloud
investments as a direct result of the pandemic – eight points
higher than the global average. These moves likely reflect an
effort to quickly provide for teleworking employees, as past
restrictions made them less capable of providing work-from-home
solutions than other industries. Moreover, most entities in this
sector are planning to maintain support for telework, with only 4%
planning to go back to their pre-pandemic approach.
- The U.S. Federal Government is especially bullish on hybrid
cloud: A sizable majority (87%) identified hybrid cloud as
their ideal IT operating model, and they’re evolving their
infrastructures to get there. Federal Government respondents’ plans
call for more than doubling their hybrid cloud usage within one
year and growing deployments to about 74% penetration within five
years, up from about 14% penetration today. These plans exceed the
stated hybrid cloud growth expectations of respondents in all other
vertical markets included in this year’s study and may be driven by
the sector’s overarching IT overhaul to meet modern demands. 53% of
U.S. Federal Government respondents reported being focused on
better supporting customers, while 48% are hoping to better support
remote workers through their IT models.
- Security plays a large factor in deployment decisions:
All respondents cited security as a significant concern affecting
hybrid cloud management. This is especially true for U.S. Federal
Government respondents, who ranked security as the greatest
challenge with maintaining a hybrid cloud environment (66%) – 15
points higher than the global average. Growing maturity of
government community clouds and security programs like FedRAMP can
help mitigate these concerns.
“The public sector has struggled with IT modernization efforts,
due in part to the regulatory and security challenges in the
industry,” said Chip George, VP Public Sector of U.S. sales at
Nutanix. “However, the rapid IT changes that were implemented in
order to maintain seamless operations at the onset of the pandemic
proved that modernization could be accomplished in a cost-effective
and streamlined manner, all while keeping regulations in mind.
Looking ahead, I believe the public sector will continue to expand
its reliance on hybrid cloud models to support increasingly
digitized workplace operations.”
The 2020 respondent base spanned multiple industries, business
sizes, and the following geographies: the Americas; Europe, the
Middle East, and Africa (EMEA); and the Asia-Pacific (APJ)
region.
To learn more about the global public sector findings, please
download the report here.
About Nutanix
Nutanix is a global leader in cloud software and a pioneer in
hyperconverged infrastructure solutions, making computing invisible
anywhere. Organizations around the world use Nutanix software to
leverage a single platform to manage any app at any location at any
scale for their private, hybrid and multi-cloud environments. Learn
more at www.nutanix.com or follow us on Twitter @nutanix.
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Nutanix Lia Bigano (408) 708-1003, Extension - 12636
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