“Companies will have spent more than $1.3 trillion on cloud computing in 2022.

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According to new research by Gartner, more than 1.3 trillion dollars will be spent on cloud computing in 2022. Currently, approximately 19 percent of the most important IT expenditure goes to the cloud.

By 2022, however, that number should rise to 28%, says Silicon Angle. The main reason is that enterprises spend more on cloud services than on traditional on-premise IT hardware and software. Companies see benefits in cloud services, such as paying for what is used and on-demand capacity. This makes processes faster and more flexible.

“The shift from enterprise IT spending to new, cloud-based alternatives is ongoing, but it takes several years due to the nature of traditional enterprise IT,” said Michael Warrilow, Reserarch Vice President at Gartner.

According to Gartner, however, cloud computing is not always the answer to most of the requirements of enterprises. Many companies still have a huge existing IT infrastructure in which significant investments have been made. Those companies are reluctant to give up.

In addition, cloud computing can often become more expensive than buying an on-premise infrastructure. Furthermore, some companies have concerns about storing the most critical data with a cloud provider. For these reasons, traditional IT expenditure will still account for 72 percent in 2022, according to Gartner.

A third in the cloud

However, a major shift is underway, especially within the expenditure on application software. More than a third of companies have already switched to the cloud. The greatest driving force behind this trend comes from customer relationship management software, such as Salesforce.

Within this sector, we have already seen the tipping point. Proportionally more is spent in the cloud than on on-premise software. According to Gartner, the same point will be reached for content and collaboration applications and office suites in 2022.

According to Gartner, the biggest shift is visible in the expenditure on system infrastructure. This is the segment of IT spending that is shifting the slowest to the cloud so far, as enterprises have already spent money on data center gear, IT services, and virtualization and operating system software. However, if that infrastructure needs to be renewed, there will be a shift in it.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.