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Gartner Projects $1 Trillion Shift In IT Spending To Cloud

Gartner Projects 1 Trillion Shift In IT Spending To Cloud

Yesterday, Gartner inc, announced it’s market analysis of the growing shift in IT spending from traditional hardware and software, to cloud computing. The IT research firm asserts that this trend will continue over the next five years, and that the transfer will total $1 trillion as businesses large and small shift to the cloud. Gartner predicts that the amount of money IT will spend on compute migration this year is about $114 billion, and will grow to $216 billion in the year 2020- resulting in a total of $1 trillion over the course of the next five years. That’s not to say that on-premis IT spending is going anywhere anytime soon, yet– it’s hard to ignore the massive impact cloud is having on the industry as a whole, and this report by Gartner solidifies everyone’s suspicion with cold hard financial vindication.

“Cloud-first strategies are the foundation for staying relevant in a fast-paced world,” said Ed Anderson, research vice president at Gartner. “The market for cloud services has grown to such an extent that it is now a notable percentage of total IT spending (see Table 1), helping to create a new generation of start-ups and “born in the cloud” providers.”


“The market for cloud services has grown to such an extent that it is now a notable percentage of total IT spending,” said Ed Anderson, Gartner research vice president and author, along with analyst Michael Warrilow, of “Market Insight: Cloud Shift — The Transition of IT Spending from Traditional Systems to Cloud.”

Additionally, Gartner reports that on average, cloud spending will represent 24% of the IT budget by 2020.

Within IT organizations, the shift will be most evident in three areas:

  • Public cloud services will replace existing IT systems.
  • They will complement or extend existing IT systems.
  • Or new applications and services will be created by IT to run exclusively in the cloud.

Find out more about what this shift to cloud means for popular vendors like  Salesforce, Microsoft and Google, all predicted to grow at the nearly identical rates of 17.9% and 17.8%, by visiting the report at

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