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Gartner Reports by 2020 “Cloud Shift” Will Affect More Than $1 Trillion in IT Spending

“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.” – Ed Anderson, research vice president at Gartner.

Last week Gartner announced that more than $1 trillion in IT spending will be directly or indirectly affected by the shift to cloud during the next five years, making cloud computing one of the most disruptive forces of IT spending since the early days of the digital age. If you missed the news, here are the highlights as reported by Gartner:

  • 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.
  • 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.
  • “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 Mr. Anderson. “Furthermore, organizations embracing dynamic, cloud-based operating models position themselves better for cost optimization and increased competitiveness.”

There’s no question that cloud growth is on the rise. In fact, check out one of our favorite articles on cloud market predictions and analysis in Forbes here: Roundup of Cloud Computing Forecasts And Market Estimates, 2016. Another Forbes favorite illustrates how managed services that complement your virtual infrastructure are often the lynchpin to cloud success: Managed Services: The Key To Your Cloud Strategy Success.

To read a detailed analysis regarding Gartner’s latest news, see Market Insight: Cloud Shift — The Transition of IT Spending from Traditional Systems to Cloud.

If you are unfamiliar with Datapipe’s history with the leading analyst firm, be sure to check out the following pieces:

About Richard Dolan

Richard Dolan
As Datapipe’s Senior Vice President of Marketing, Rich is responsible for developing and driving Datapipe’s world class marketing team and ensuring Datapipe stays ahead of the curve with product development and client support. Rich has been with Datapipe for more than 15 years and has seen the company evolve into a leading, global MSP. Rich writes about Datapipe news, Datapipe clients, business strategies, and also provides insight into the company’s partnerships with AWS, Microsoft, Equinix, and others.

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