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How the Cloud Is Changing the IT Business Climate

Cloud innovation How the Cloud Is Changing the IT Business Climate The cloud is starting to dominate the IT landscape, and half the workload in the cloud represents use cases that were not available in the client/server era. The Size of the Greater Cloud IDC predicts that greater cloud spending will exceed $500 billion by […]

Written By: Michael Vizard

Mar 16, 2016

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How the Cloud Is Changing the IT Business Climate

The cloud is starting to dominate the IT landscape, and half the workload in the cloud represents use cases that were not available in the client/server era.

The Size of the Greater Cloud

IDC predicts that greater cloud spending will exceed $500 billion by 2020. Those projections include the value of the both the cloud platforms and the IT services required to deliver them.

Public Cloud Usage

IDC forecasts public cloud spending will show a 19% compound annual growth rate, reaching $141 billion by 2019.

The Cloud Is Pervasive

More than three-quarters (78%) of organizations said they have or intend to deploy cloud technologies as of late 2015. A full 70% of CIOs will have adopted a “cloud-first” purchasing mentality by 2016.

Assessing Cloud Dominance

IDC estimates that some form of the cloud accounts for almost 30% of IT spending. In 24 months, that number is forecast to be 43%. In addition, by 2019, IDC expects that 40% of all software will be subscription-based.

Cloud Creates New Opportunities

IDC estimates that 50% of cloud applications and services will be for use cases that were not addressed in the client/server era.

Where the IT Infrastructure Is Going

IDC estimates the cloud will account for 43% of total server shipments by 2017. By 2016, more than 50% of compute and 70% of storage capacity will be installed in hyper-scale data centers.

Where Cloud Funding Comes From

IDC estimates that either directly or indirectly the business side of organizations now fund 61% of all IT projects.

Making the Cloud Purchasing Decision

A full 65% of B2B buyers usually engage a sales rep only after they’ve made a purchase decision. The cloud is clearly changing the way IT is not only consumed, but just as significantly for the channel the way IT services are actually acquired.

Michael Vizard

Michael Vizard is a seasoned IT journalist, with nearly 30 years of experience writing and editing about enterprise IT issues. He is a writer for publications including Programmableweb, IT Business Edge, CIOinsight, Channel Insider and UBM Tech. He formerly was editorial director for Ziff-Davis Enterprise, where he launched the company’s custom content division, and has also served as editor in chief for CRN and InfoWorld. He also has held editorial positions at PC Week, Computerworld and Digital Review.

How the Cloud Is Changing the IT Business Climate

Michael Vizard

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