Enterprise IT spending on public cloud computing will overtake spending on traditional IT in 2025, according to research by Gartner.
This rapid shift in buying habits, driven in part by the COVID-19 pandemic, has seen widespread adoption of cloud-based infrastructures, applications and business process services. In fact, Gartner says almost two-thirds (65.9 percent) of spending on application software will be directed toward cloud technologies in 2025, up from 57.7 percent in 2022.
There is a shedload of pressure for suppliers to come up with viable options. Gartner vice president Michael Warrilow said: “Technology and service providers that fail to adapt to the pace of cloud shift face increasing risk of becoming obsolete or, at best, being relegated to low-growth markets.”
Public cloud services are expected to exceed $480 billion this year. Much of the optimism for this growth is based on the big cloud suppliers’ strategy towards industry clouds, virtualised cloud solutions based on increasing sophistication and integration of services. Last year, all three suppliers announced industry cloud strategies.
The report mirrors another from Gartner rivals Deloitte’s offering Reimagining digital transformation with industry clouds. The report said that industry clouds “not only allow organisations to shift internal resources to focus on their strategic ability to win but perhaps, they can hypercharge an organisation’s capacity to change”.
Deloitte said: “Organisations will find much more than hyperscaler-developed products and services in industry clouds. Indeed, there is a growing ecosystem of sector-specific business capabilities from established vendors such as MuleSoft, Oracle, Salesforce, SAP, ServiceNow, as well as startup and open-source projects.”
There is the internal resources conundrum to consider. This should free up resources for other development work, innovation and differentiation. Given the current state of digital skills gaps.
