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​Cloud shift set to impact over $1 trillion in IT spending

​Cloud shift set to impact over $1 trillion in IT spending

IT asset managers must identify risks and opportunities and adjust vendor management styles.

More than $US1 trillion in IT spending will be directly or indirectly affected by the shift to cloud during the next five years.

According to Gartner, this will make cloud computing one of the most disruptive forces of IT spending since the early days of the digital age.

“Cloud-first strategies are the foundation for staying relevant in a fast-paced world,” Gartner Research Vice President, Ed Anderson, said.

“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 start-ups and "born in the cloud" providers.”

In addition to the direct effects of cloud shift, Anderson said many markets will 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.

For example, instead of buying operating systems (OSs) for each user in the traditional way, many will be provided as OS images - particularly with the use of containers for next-generation applications.

As explained by Anderson, another example is that enterprise storage needs could be met with a lower up front cost and far more scalability by switching to cloud solutions instead of buying dedicated hardware.

“Cloud shift is not just about cloud,” he added. “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.

“Furthermore, organisations embracing dynamic, cloud-based operating models position themselves better for cost optimisation and increased competitiveness.”

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