28 Jul 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.