Gartner latest IT spending forecast predicts spend on cloud services will increase by almost 60% through 2021.
Global IT spend is set to reach $3.8 trillion this year, a 3.2% increase from 2018.
Businesses are moving to cloud, shifting away from traditional systems and this trend is already having an impact on IT budgets and markets in the coming years.
The report further suggests that IT spending in general, will continue to rise through 2022 and that cloud computing will play a significant role in increased expenditure.
Cloud system infrastructure services alone account for $39.5 billion of worldwide IT spend and will rise to $63 billion by 2021.
With the shift to cloud being a key driver of IT spending, enterprise software will continue to grow, with worldwide software spending projected to increase by 8.5% in 2019.
It is expected to grow another 8.2% in 2020, totaling $466 billion.
This shows that organizations are increasing their spend on enterprise application software and that more budget is being made available for software as a service.
Research Vice President at Gartner, John-David Lovelock said: “IT is no longer just a platform that enables organizations to run their business on, it is becoming the engine that moves the business.”
Senior PR director at Gartner, Christy Pettey, said that the move to cloud services come with “both great risk and great opportunity.”
As many enterprises adopt a cloud-first approach due to the many opportunities with cloud, it is vital to also acknowledge the risks and challenges that come with moving to cloud.
As cloud costs continue to rise, many organizations are being faced with the difficult task of managing and containing costs related to cloud.
Managing cloud costs is easier said than done due to the dynamic nature of cloud costs and services.
To ideally manage costs and keep cloud services running optimally organizations have the daunting task of constantly staying updated on the changes to cloud services.
Tracking the millions of possibilities available with cloud services to tailor to an organization needs is beyond human capability.
That is why Kostner offers Cloud Cost Management as a service.
Using AI and Big Data, Kostner’s Cloud Cost Management service analyzes and simulates the millions of possibilities to find the best possible way to run cloud services based on specific needs, keeping cost down in the process.
KOSTNER’s service works on a subscription basis and is a valuable tool for anyone tasked with cloud cost management.
Learn more about the tools and insight KOSTNER can provide by getting in touch today.
Visit kostner.com or email us at email@example.com.