The triumph of artificial intelligence is increasingly reaching the cloud

• Almost all companies (98 per cent) are in the cloud today, 55 per cent rely on hybrid cloud, a mixture of public and private cloud
• 97 per cent of cloud-using companies use AI services from cloud providers
• Around half of companies are pursuing the goal of increasing IT security and digitalising internal processes with their cloud strategy
• Cloud performance and stability as well as trust in security and compliance are decisive criteria when choosing a provider
• The majority of companies save IT costs by using the cloud, with more than half of their IT budget going to the cloud

Artificial intelligence is increasingly finding its way into the cloud: 97 per cent of companies that use cloud services obtain their AI solutions from cloud providers. The age of traditional data centres, on the other hand, seems to be slowly coming to an end: Only 26 per cent of companies still use them for their AI solutions.

This is shown by the "Cloud Monitor 2024", for which KPMG surveyed over 500 German companies regarding their cloud usage.  

98 per cent of the German companies surveyed with 50 or more employees are currently in the cloud. Most of them rely on hybrid cloud models that offer a combination of public and private cloud solutions. 57 per cent of companies are pursuing the goal of increasing their own IT security with their cloud strategy. For almost half of them, the digitalisation of internal processes and cost optimisation are important goals. 52% of companies are pursuing a cloud-first strategy and 23% want to switch completely to a cloud-only strategy.

67 per cent of companies have achieved high or very high IT cost savings by using the cloud. However, there is also the other side of the coin: 21 per cent of large companies with 5,000 or more employees report increased IT costs due to cloud computing. 58 per cent of companies spend half or more of their IT budget on the cloud. In large companies with 5,000 or more employees, as many as 64 per cent spend at least half of their IT budget on various cloud services.

For 77 per cent of companies, the topic of ESG is important or very important when using the cloud. For large companies with 5,000 or more employees, 84 per cent consider ESG aspects to be important or very important.

67 per cent of companies have achieved high or very high IT cost savings by using the cloud. However, there is also the other side of the coin: 21 per cent of large companies with 5,000 or more employees report increased IT costs due to cloud computing. 58 per cent of companies spend half or more of their IT budget on the cloud. In large companies with 5,000 or more employees, as many as 64 per cent spend at least half of their IT budget on various cloud services.

For 77 per cent of companies, the topic of ESG is important or very important when using the cloud. For large companies with 5,000 or more employees, 84 per cent consider ESG aspects to be important or very important.

The Cloud Monitor is a company survey that has been conducted annually since 2012. The data for this year's Cloud Monitor was collected via computer-assisted web interviews (CAWI) in the period from June to July 2024.

The sample size for the Cloud Monitor 2024 comprises 503 German companies with at least 50 employees. The respondents were managers from the Engineering, DevOps or IT/OT Operations, FinOps or Cloud Financial Management, Digitalisation/Innovation, Finance or IT Controlling or Procurement departments, as well as members of the management or Executive Board. The target group was selected in such a way that both companies of different sizes and companies from different sectors are sufficiently represented to provide statistically sound results.

The detailed results can be downloaded via the link below: Cloud Monitor 2024 - download now

Clemens Reisbeck

Deputy Head Corporate Communications
KPMG AG Wirtschaftsprüfungsgesellschaft

T +49 89 9282 1722
creisbeck@kpmg.com