IT spending is steadily shifting from traditional IT offerings to cloud services. Just how much will cloud services and spending grow? This week’s FIN News Alert looks at the CFO Innovation article, “Cloud Shift Will Affect More Than $1 Trillion in IT Spending by 2020,” and shares more insights from Gartner, Inc. on the projected “cloud shift.” Here are the highlights:
- Gartner expects that more than $1 trillion in IT spending will be directly or indirectly affected by the shift to cloud during the next five years.
- These estimates also 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,” says 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 startups 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 by 2020.
- Cloud shift rates are determined by comparing IT spending on cloud services with traditional noncloud services in the same market categories.
- Gartner’s expert also points out that as organizations pursue new IT architectures and operating philosophies, they become prepared for new opportunities in digital business, including solutions such as the Internet of Things.
Looking for more on cloud solutions for your financial institution? Check out this infographic, Get Your Head in the Cloud, for insights.