On-premises Database Market Still Relevant Despite Cloud Dominance

Share post:

The total database market has roughly doubled over the past five years, with cloud databases accounting for about half of that (49%). However, organizations are still heavily active in the on-premises database market, with companies spending an additional $3.2 billion for on-premises database software in 2021.

According to Gartner analyst Merv Adrian, despite the massive rollout of cloud databases, on-premises continue to account for 95% of the IT market. This is measured in terms of hardware, software and services spending.

While database workloads are shifting to the cloud as it provides the ability to bring data closer to consumers and data creators, the costs of this transition are not always outweighed by the benefits.

Adrian explained that on-premises workloads are growing at the rate consistent with how fast they’ve grown over the past few years, but this trend could soon come to an end as on-premises database software providers are rapidly developing their cloud capabilities at a fast pace. These vendors may also convince their customers to switch to the cloud, thereby reducing the use of on-premises software.

“If they don’t get in gear in the cloud, the market will pass them by — if on-premises revenue is dropping and cloud revenue is not keeping up with the market, troubles lay ahead,” warned Adrian.

The sources for this piece include an article in TechRepublic.

SUBSCRIBE NOW

Related articles

VMWare revenue drops by $600 million but Broadcom assures investors growth plan is on track

In its first full quarter under Broadcom's ownership, VMware's revenue fell by $600 million, dropping to $2.7 billion....

Global data breach crisis: Are Santander and Ticketmaster victims of massive cyberattacks linked to Snowflake compromise?

Santander Bank and Ticketmaster have fallen prey to extensive data breaches orchestrated by the notorious hacker group, ShinyHunters....

Starlink’s evolution making it less “TCP/IP friendly”

The rapid evolution of Starlink's satellite internet presents significant challenges for traditional Transmission Control Protocol (TCP), according to...

Google does the unthinkable – reportedly erasing a 125 billion dollar pension fund

It's reported that Google inadvertently erased the Google Cloud account of UniSuper, an Australian pension fund valued at...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways