Cloud Computing solutions and services continue to make serious in-roads across enterprise operations. This notion was also confirmed by a recent research published by Gartner, which was titled “Cloud Shift”.
The cited report focuses primarily on the total spending in just the core areas of Information Technology (IT). These key areas include business process services, system infrastructure, application software and infrastructure software.
Gartner estimates that by the year 2025, more than half, 51% to be precise, of the total IT spending on the above cited key areas will shift to the Cloud. During the current year 2022, it is estimated that this spending figure will roughly be 41% of the total IT spend.
Among these key areas, it is application software that clearly stands out from the rest. It is estimated by Gartner that by the year 2025, a sizeable two thirds, or 66% of the total spend on application software will be directed towards cloud technologies.
During the year 2022, it is expected that nearly 58% of the total spending on application software will be scooped up by various Cloud Service Providers (CSP) like dinCloud, which is an ATSG company.
The report highlights that this recent surge in the demand for cloud services and solutions has a lot to do with the global Covid-19 pandemic, and its aftermath. The research also highlights the skills gap in most regions experiencing this major shift to the Cloud.
Most small to mid sized companies are otherwise perceiving on-premise environments way costlier than cloud services as well as solutions. Another factor that was cited by Gartner’s report is the unique capabilities of cloud services like the distributed cloud.
The concept of a distributed cloud has completely blurred the boundaries typically associated with cloud infrastructures. Such innovative iterations of cloud services hold the autonomy of on-premise environments, while the flexibility of public clouds.
A distributed cloud brings cloud storage, compute and networking in the near proximity of the deploying enterprise. This in turn helps deploying enterprises bridge the challenges associated with latency, regulatory compliance or data governance.
Towards the end, Gartner’s report also urges Cloud Service Providers (CSP) and Managed Service Providers (MSP) to focus on the sub-segments / sectors where this transition to the Cloud is being pursued more aggressively, as it represents a market opportunity.
The report points out that unlike the enterprise applications space, which is pretty much being dominated by the Cloud, sub-segments like Infrastructure as a Service (IaaS) still have plenty of room for adoption. This represents an opportunity for cloud and IaaS providers.
Gartner expects this strong momentum gained in the adoption of cloud services to pick up further pace, especially when we talk of the years spanning 2022 and 2025.