By 2024, more than 45% of spending on system infrastructure, infrastructure software, application software, and business process outsourcing will move from traditional solutions to cloud-based solutions, according to Gartner predictions.
This evolution makes the cloud one of the most disruptive forces in IT markets since the early days of the digital age, creating an opportunity for IT leaders to enable digital business transformation, according to the prestigious firm.
Companies are increasingly using cloud services for new initiatives or to replace existing systems, meaning regular expenses destined to traditional IT solutions are being reallocated to the cloud. The result is what Gartner calls cloud change, and it\'s happening most often because of a growing preference for the cloud.
"Gartner\'s cloud change data reveals that companies are demonstrating an ongoing preference for public cloud services over traditional non-cloud alternatives," says Ed Anderson, Gartner\'s distinguished VP analyst. "The share of IT spending allocated to the cloud will accelerate further, given the COVID-19 crisis, as companies seek to improve operational efficiency."
For example, Gartner\'s latest IT spending forecast shows that spending on data center systems is projected at $188 billion in 2020, a 10% decrease from 2019. By contrast, spending on cloud systems infrastructure services is expected to grow from $44 billion in 2019 to $63 billion by 2020, reaching $81 billion by 2022.
New digital business opportunities
Switching to the cloud isn\'t just about the cloud. As organizations seek new IT architectures and operational philosophies, they create a foundation for new opportunities in the digital business, including next-generation IT solutions.
Organizations that adopt dynamic cloud-based operating models are ready for greater competitiveness, especially in the rapidly changing business environment. These organizations not only recognize the short-term benefits of the cloud, but also position themselves to be the first to embrace the innovations that will define the future.
The next big wave of technological change is already emerging through artificial intelligence (AI), IoT, Edge computing, and advanced data analytics. These innovations are almost always linked to a cloud base as part of an organization\'s digital enterprise technology platform.
However, infrastructure and operations leaders responsible for cloud investment decisions should be wary of "cloud washing" or the tendency to call cloud to things that are not. Consider applying a "smart cloud" approach that balances cloud adoption with the unique circumstances and goals of your organization and business value.
Switching to the cloud represents both a risk and an opportunity for IT leaders. As the cloud becomes increasingly common, it will dominate ever-increasing portions of its business decisions. Our company Softelinet can advise you on what are the best options for your company, since we adapt to the needs and budget of our customers, always finding the best solutions for their business.