Recent findings show that IT spending on public cloud technologies is growing and will be a major priority for all by 2025.
What does your cloud strategy look like? We’re heading to a tipping point in IT spending, where more of an organisation’s budget is being allocated to the cloud and related technologies. In fact, according to a recent Gartner report exploring the growth of the tech and computing markets, cloud computing will soon hold a majority of IT spending budgets—51% by as early as 2025. Beyond that, spending will only continue to grow, with traditional IT solutions being left behind and public clouds becoming the go-to.
This shouldn’t be a major surprise, with many organisations moving to a hybrid or fully remote configuration and digitisation being a heavy focus in the current landscape. That said, there are some notable insights in the report that point to a bright future for cloud vendors, even if the report only considers public cloud options and not private ones.
Nearly two-thirds of spending on application software will be attributed to cloud technologies by 2025. Undoubtedly, this has to do with a lot more than just collaborative opportunities through the always-accessible cloud applications. For example, cloud providers can deliver reliable and enhanced security, fast and seamless updates, and multi-platform support with very few requirements on the client side.
There’s no arguing the convenience of cloud services. Moreover, the resources that vendors have access to and the services they can provide far outweigh traditional IT operations. Newer technologies have also made performance and efficiency better than ever, with low-latency, reduced network bandwidth requirements and location-specific options—especially when data centres are spread so far and wide, offering exceptional regional performance.
With real concerns about cybersecurity in all industries, most of all for the supply chain and critical infrastructure—thanks in no small part to the Colonial Pipeline hack in the USA—cloud security is in the limelight. Not to mention, Australian organisations have been preparing for the Critical Infrastructure Act 2018, which came into play at the end of 2021. Moreover, the World Economic Forum’s Global Risks Report 2022 points out that cybersecurity is one of the biggest worries for Australian business leaders in 2022 and will be a growing priority.
Organisations will be looking to cloud vendors to aid in and support their cybersecurity endeavours. From making seamless server and storage upgrades to providing the security and peace of mind all businesses need to thrive in today’s digital landscape, cloud vendors have access to many more resources than even enterprises with sweeping IT budgets.
The Cloud Will Dominate; Don’t Get Left Behind
Noting the benefits of enhanced cloud applications and cloud security, coupled with many of the other perks offered by cloud services, it shouldn’t be a surprise that IT spending on the public cloud is soon to overtake traditional IT expenses. Now’s the ideal time to renew your focus on the cloud if you haven’t already. If you put it off much longer, you’ll lose a competitive edge, especially as these numbers reveal just how much of the market is moving to cloud technologies.
Consider what an experienced cloud vendor like SMB Solutions Cloud Services could do for your company – get in touch today for more information!