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Cloud set to dominate IT spending by 2022

(Image credit: Image Credit: Melpomene / Shutterstock)

Businesses will increase their spending on cloud-based technologies in the near future, according to new figures from Gartner. What’s more, cloud will be an industry that will continue to grow faster than traditional non-cloud IT offerings. However, we’re still a long way from seeing cloud become the dominant IT technology.

Gartner says that 28 per cent of spending within key enterprise IT markets will shift to the cloud by 2022, representing a three per cent jump from this year. However, by the time we reach 2022, traditional offerings will still constitute 72 per cent of the ‘addressable revenue for enterprise IT markets”.

“The shift of enterprise IT spending to new, cloud-based alternatives is relentless, although it’s occurring over the course of many years due to the nature of traditional enterprise IT,” said Michael Warrilow, research vice president at Gartner. “Cloud shift highlights the appeal of greater flexibility and agility, which is perceived as a benefit of on-demand capacity and pay-as-you-go pricing in cloud.”

More than $1.3 trillion of IT spending will be affected, one way or another, by the move to the cloud, Gartner says. Those providers that manage to be at the forefront of this transition will see long-term success. The market analysts recommend technology providers to use the cloud shift as a measure of opportunities in the market.

“The shift to cloud until the end of 2022 represents a critical period for traditional infrastructure providers, as competitors benefit from increasing cloud-driven disruption and spending triggers based on infrastructure asset expiration,” said Mr Warrilow. “As cloud becomes increasingly mainstream, it will influence even greater portions of enterprise IT decisions, particularly in system infrastructure as increasing tension becomes apparent between on- and off-premises solutions.”

Image Credit: Melpomene / Shutterstock