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Cloud shift to affect over $1 tn in IT spending by 2020: Gartner

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IANS Mumbai
Last Updated : Jul 22 2016 | 1:42 PM IST

More than $1 trillion in IT spending will be directly or indirectly affected by the shift to Cloud in the next five years -- making Cloud computing one of the most disruptive forces of IT spending since early days of the digital age, market research firm Gartner said on Friday.

"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," he added.

IT spending is steadily shifting from traditional IT offerings to Cloud services.

The aggregate amount of cloud shift in 2016 is estimated to reach $111 billion -- increasing to $216 billion in 2020, Gartner said.

"Cloud shift is not just about Cloud. As organisations pursue 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 (IoT)," Anderson said.

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

--IANS

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First Published: Jul 22 2016 | 1:28 PM IST

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