More than $1 trillion in IT spending will be directly or indirectly affected by the shift to cloud during the next five years, according to 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 VP 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 Anderson. "Furthermore, organizations embracing dynamic, cloud-based operating models position themselves better for cost optimization and increased competitiveness."
The Latest
We're at a critical inflection point in the data landscape. In our recent survey of executive leaders in the data space — The State of Data Observability in 2024 — we found that while 92% of organizations now consider data reliability core to their strategy, most still struggle with fundamental visibility challenges ...
From the accelerating adoption of artificial intelligence (AI) and generative AI (GenAI) to the ongoing challenges of cost optimization and security, these IT leaders are navigating a complex and rapidly evolving landscape. Here's what you should know about the top priorities shaping the year ahead ...
In the heat of the holiday online shopping rush, retailers face persistent challenges such as increased web traffic or cyber threats that can lead to high-impact outages. With profit margins under high pressure, retailers are prioritizing strategic investments to help drive business value while improving the customer experience ...
In a fast-paced industry where customer service is a priority, the opportunity to use AI to personalize products and services, revolutionize delivery channels, and effectively manage peaks in demand such as Black Friday and Cyber Monday are vast. By leveraging AI to streamline demand forecasting, optimize inventory, personalize customer interactions, and adjust pricing, retailers can have a better handle on these stress points, and deliver a seamless digital experience ...
Broad proliferation of cloud infrastructure combined with continued support for remote workers is driving increased complexity and visibility challenges for network operations teams, according to new research conducted by Dimensional Research and sponsored by Broadcom ...
New research from ServiceNow and ThoughtLab reveals that less than 30% of banks feel their transformation efforts are meeting evolving customer digital needs. Additionally, 52% say they must revamp their strategy to counter competition from outside the sector. Adapting to these challenges isn't just about staying competitive — it's about staying in business ...
Leaders in the financial services sector are bullish on AI, with 95% of business and IT decision makers saying that AI is a top C-Suite priority, and 96% of respondents believing it provides their business a competitive advantage, according to Riverbed's Global AI and Digital Experience Survey ...
SLOs have long been a staple for DevOps teams to monitor the health of their applications and infrastructure ... Now, as digital trends have shifted, more and more teams are looking to adapt this model for the mobile environment. This, however, is not without its challenges ...
Modernizing IT infrastructure has become essential for organizations striving to remain competitive. This modernization extends beyond merely upgrading hardware or software; it involves strategically leveraging new technologies like AI and cloud computing to enhance operational efficiency, increase data accessibility, and improve the end-user experience ...
AI sure grew fast in popularity, but are AI apps any good? ... If companies are going to keep integrating AI applications into their tech stack at the rate they are, then they need to be aware of AI's limitations. More importantly, they need to evolve their testing regiment ...
