Cloud shift to affect over $1 tn in IT spend in 5 yrs: Gartner

The shift to cloud computing during the next five years will affect over USD 1 trillion in IT spending, making it one of the most disruptive forces since the early days of the digital age, technology research firm Gartner said.
"Cloud-first strategies are the foundation for staying relevant in a fast-paced world," said Ed Anderson, research vice president at Gartner.
"The market for cloud services has grown to such an extent that it is now a notable percentage of total IT spending, helping to create a new generation of startups and born in the cloud providers," he added.
The aggregate amount of cloud shift in 2016 is estimated to reach USD 111 billion, increasing to USD 216 billion in 2020.

Cloud shift rates are determined by comparing IT spending on cloud services with traditional non-cloud services in the same market categories, Gartner said in a statement.
In addition to the direct effects of cloud shift, many markets are expected to be affected indirectly.

Identifying indirect effects can help IT asset and purchasing managers ensure they are getting the best value out of new expenditure and are protected against risk, as well as assisting them to exploit the new opportunities caused by cloud shift.
"Cloud shift is not just about cloud. As organisations pursue a new IT architecture and operating philosophy, they become prepared for new opportunities in digital business, including next-generation IT solutions such as the Internet of Things," Anderson said.

Organisations embracing dynamic, cloud-based operating models position themselves better for cost optimisation and increased competitiveness, he added.