According to Gartner, Twenty-eight percent of spending within key enterprise IT markets will shift to the cloud by 2022, up from 19 percent in 2018. Growth in enterprise IT spending on cloud-based offerings will be faster than growth in traditional, non-cloud IT offerings. Despite this growth, traditional offerings will still constitute 72 percent of the addressable revenue for enterprise IT markets in 2022, according to Gartner forecasts.
“ The shift of enterprise IT spending to new, cloud-based alternatives is relentless, although it’s occurring over the course of many years due to the nature of traditional enterprise IT, ” said , research vice president at Gartner. “ Cloud shift highlights the appeal of greater flexibility and agility, which is perceived as a benefit of on-demand capacity and pay-as-you-go pricing in cloud. ”
More than $1.3 trillion in IT spending will be directly or indirectly affected by the shift to cloud by 2022, according to Gartner. Providers that are able to capture this growth will drive long-term success through the next decade.
Gartner recommends that technology providers use cloud shift as a measure of . They should assess growth rates and addressable market size opportunities in each of the four cloud shift categories: system infrastructure, infrastructure software, application software and business process outsourcing.