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.
