More than $1 trillion in IT spending will be directly or indirectly affected by the shift to cloud computing 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 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 non-cloud services in the same market categories.
In addition to the direct effects of cloud shift, many markets will be affected indirectly, Gartner said. Identifying indirect effects can help IT asset and purchasing managers ensure they are getting the best value out of new expenditures and are protected against risk, as well as helping them exploit the new opportunities caused by cloud shift, the firm says.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access