Gartner Sees $1 Trillion Shift In IT Spending To Cloud

Gartner Sees $1 Trillion Shift In IT Spending To Cloud

IT spending is undergoing a shift from traditional sources, such as direct server and software license purchases, into public cloud computing. The amount of money IT will spend on cloud services this year is $114 billion, and will grow to $216 billion in the year 2020, according to a report released by Gartner.

That means the impact of the shift will amount to a total of $1 trillion over the course of the next five years. The transition is occurring at a rate of about 2% a year, with IT budget dollars moving away from the enterprise data center assets and into the public cloud.

Such a shift will still leave on-premises IT spending predominant for several years to come. Compared to that $216 billion to be spent on public cloud services in 2020, Gartner sees total IT spending that year amounting to $3.9 trillion.

Gartner also projects that IT budgets as a whole will grow at a 2% compound annual growth rate between 2015 through 2020. The firm also projects traditional IT spending will remain essentially flat after 2016, while cloud spending continues to grow.

Read full article by Charles Babcock at NetworkComputing>>