Companies spending massive sums to move to the cloud
Last July it was predicted that companies would collectively spend $111 billion moving on premise technologies to the cloud. That amount is expected to rise to $216 billion by 2020.
The sizable investment companies are placing in the cloud comes as no shock. Some of the most successful organizations in the world are leaning more and more on supplying cloud-based tools, while upcoming businesses are prioritizing their usage as well. A recent report from Cloud Computing takes a closer look at where this investment is going, and what’s driving companies to invest so heavily.
In a broad sense, “Cloud-first strategies are the foundation for staying relevant in a fast-paced world,” according to Ed Anderson, the research vice president for Gartner. For smaller businesses, the cloud offers flexibility and scalable growth. For larger organizations with the most advanced cloud-based solutions, the benefits are more immediate, with some seeing up to $3 million in additional revenues, and another $1 million in cost savings.
Another driving force behind investment is disruption, both fear of and attraction to. Companies big and small view advanced digital technologies like the cloud as the best way to gain on competitors. At the same time, established companies view it as a means for reacting to any sort of disruption initiated by an upstart competitor.
The products of cloud investment are spread quite evenly between public and private platforms. Of the 1,000 companies participating in the report, 38% said they were creating a private cloud, while 32% had a public cloud in their plans. The remaining participants had not yet settled on the type they would build.