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IT spending and cloud shift in 2020: What you need to know

25 Jul 2016

Within the next five years, “Cloud Shift” will affect more than $1 trillion in IT spending, says Gartner.

According to the research company, this will make cloud computing one of the most disruptive forces of IT spending since the early days of the digital age.

Ed Anderson, research vice president at Gartner, says cloud-first strategies are the foundation for staying relevant in a fast-paced world,

"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,” says Anderson.

Gartner says that IT spending is steadily shifting from traditional IT offerings to cloud services (cloud shift). The total amount of cloud shift in 2016 is estimated to reach $111 billion, increasing to $216 billion by 2020.

As demonstrated in the table below, these shift rates are determined by comparing IT spending on cloud services with traditional non-cloud services in the same market categories. 

Gartner also claims that many markets will be affected indirectly by cloud shift.

“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,” a company statement read.

According to the research company, instead of buying operating systems (OSs) for each user in the traditional way, many will be provided as OS images.

However, Anderson says cloud shift isn’t just about cloud.

“As organisations 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," says Anderson.

"Furthermore, organisations embracing dynamic, cloud-based operating models position themselves better for cost optimisation and increased competitiveness."

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