Cloud spend to reach $411bn by 2020

Blog Post created by Employee on Oct 19, 2017

I can't be the only one (or maybe I am!) that gets a faint feeling of smugness when analyst giants like Gartner have to admit that they got things wrong?  A case in point is this week's research that shows Cloud adoption is happening faster than even the mighty Gartner predicted.  


This year alone, Gartner now expects $260bn to be spent on Public Coud, up from $220bn last year.   And the growth is going to accelerate further, hitting $411bn by 2020.   It will be interesting to see whether even this revised figure ends up being an underestimate. 


Of particular note to the Snow community is Gartner's admission that they got their SaaS adoption forecasts wrong and that SaaS spend in 2016 topped $48bn - and will exceed $58bn by the end of this year.  More and more of the 'software' (and I even hesitate to call it 'software' anymore) your organizations consume is hosted in the cloud, changing the way that you and your colleagues in the IT and finance teams need to track the spend and risk associated with it.   


IaaS is seeing similar levels of growth, reaching nearly $35bn this year and making it the fastest-growing of all cloud areas.   Again, this has a particular importance to the SAM and ITAM communities who need to support the adoption of new technologies to drive Digital Business, but who need to balance this against the obligation to manage risks and ensure that all costs are justified (not the same thing as targeting cost savings).   Increasingly, your organizations and bosses know that they need to spend more on technologies.  But that isn't an excuse to waste money.  


Although Gartner doesn't offer any figures itself, our own anecdotal evidence suggests that as much as 30 percent of SaaS and IaaS spend is currently wasted - software subscriptions that are left unused, agreements pitched at the wrong level, zombie VMs left running for months after they are needed.  Addressing this waste isn't just about driving bottom-line savings; it's about ensuring there is money available to support the initiatives and projects that will drive real business benefit.  


Read more about the latest Gartner research here