www.helpnetsecurity.com
Cloud shift will affect $1 trillion
in IT spending
More than $1 trillion in IT spending will be directly or
indirectly affected by the shift to cloud during the next five years, said
Gartner, Inc. This will make cloud computing one of the most disruptive forces
of IT spending since the early days of the digital age.
“Cloud-first
strategies are the foundation for staying relevant in a fast-paced world,” said
Ed Anderson, research vice president at Gartner. “The market for cloud services
has grown to such an extent that it is now a notable percentage of total IT
spending, helping to create a new generation of start-ups and “born in the
cloud” providers.”
IT spending is steadily shifting from traditional IT
offerings to cloud services (cloud shift). The aggregate amount of cloud shift
in 2016 is estimated to reach $111 billion, increasing to $216 billion in 2020.
Cloud shift rates are determined by comparing IT spending on cloud services
with traditional noncloud services in the same market categories.
In addition to the direct effects of cloud shift, many
markets will be affected indirectly. Identifying indirect effects can help IT
asset and purchasing managers ensure they are getting the best value out of new
expenditure and are protected against risk, as well as assisting them to
exploit the new opportunities caused by cloud shift.
For example, instead of buying operating systems (OSs) for
each user in the traditional way, many will be provided as OS images —
particularly with the use of containers for next-generation applications.
Another example is that enterprise storage needs could be met with a lower up
front cost and far more scalability by switching to cloud solutions instead of
buying dedicated hardware.
“Cloud shift is not just about cloud. As organizations
pursue a new IT architecture and operating philosophy, they become prepared for
new opportunities in digital business, including next-generation IT solutions
such as the Internet of Things,” said Mr. Anderson. “Furthermore, organizations
embracing dynamic, cloud-based operating models position themselves better for
cost optimization and increased competitiveness.”
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