A survey published by Foundry, formerly IDG Communications, showed that only 7% of enterprises are all-cloud.

Half of the 850 IT executives said that their organization’s entire IT environment is “some on cloud but mostly on-premises,” while more than a third (34%) is “mostly cloud, but some on-premises.”

Although the number of all-cloud companies is expected to increase by about 250% over the next 18 months, it still represents the minority of enterprises.

The report also highlights the fact that cloud has become a standard strategy for most IT executives.

72% of IT executives say that their organization will use cloud-based services when upgrading or purchasing new technical capabilities, and 46% predict that the entire IT environment of their organization will be “mostly cloud, but some on-premises.”

According to the survey, companies plan to spend almost a third (32%) of their entire IT budget on cloud computing in the next 18 months.

Key business objectives driving cloud investment include: enabling disaster recovery and business continuity (40%), replacing on-premise legacy technology (39%), lowering total cost of ownership (34%), improving employee productivity (33%), and greater flexibility to react to changing market conditions (32%).

Top challenges include controlling cloud costs (36%), data privacy and security challenges (35%), and lack of cloud skills/expertise (34%).