Gartner: Global Cloud Spending Double the Size of Non-Cloud Market by 2025

Due to the coronavirus epidemic, the cloud market surpassed the non-cloud market in the corporate application software industry for the first time in 2020. Gartner predicts that by 2025, it will be double the size of the non-cloud industry.

Organizations are focusing on updating their software stack to Software-as-a-Service (SaaS) to enable sustained flexibility and agility. Cloud is responsible for virtually all of the 11% expenditure growth in the enterprise software category in 2022, according to Gartner.

Gartner John Lovelock
“2022 is the year that the future returns for the CIO,” said John-David Lovelock, distinguished research vice president at Gartner.

Total IT investments worldwide are expected to reach $4.5 trillion in 2022, up 5.1 percent from 2021, according to Gartner’s latest prediction. Regardless of the Omicron variant’s possible consequences, the economic recovery, along with strong hopes for digital market success, would continue to drive technological expenditures.

“2022 is the year that the future returns for the CIO,” said John-David Lovelock, distinguished research vice president at Gartner. “They are now in a position to move beyond the critical, short-term projects over the past two years and focus on the long term. Simultaneously, staff skills gaps, wage inflation and the war for talent will push CIOs to rely more on consultancies and managed service firms to pursue their digital strategies.”

Managed Services, Consultants

According to Gartner, the IT services market – which includes consulting and managed services – will expand at the second-fastest rate in 2022, reaching $1.3 trillion, up 7.9% from 2021. In 2022, spending on business and technology consulting is predicted to increase by 10%.

According to Gartner, firms will rely more on external consultants through 2025 as the higher urgency and quicker speed of change widen the gap between their digital business aspirations and internal resources and competencies.

“This will be particularly poignant with cloud as it serves as a key element in achieving digital ambitions and supporting hybrid work,” added Mr. Lovelock. “Gartner expects the vast majority of large organizations to use external consultants to develop their cloud strategy over the next few years.”