Everyone seemingly agrees cloud spending is growing, and growing faster than private cloud or traditional enterprise private computing. But some analyses of spending suggest the market is still young. Public cloud spending might still represent just single-digit portions of enterprise information technology budgets.
By now, cloud computing advantages are clear enough: lower cost for growing and small companies; unpredictable workloads and flexibility. The downsides might include security, downtime, vendor lockin, data portability and even cost when workloads are sufficiently large or unmonitored.
Mid-sized companies with stable workloads might actually find that public cloud costs more than using in-house private computing. That might be true for small workloads and simple apps, or highly-irregular and “spikey” compute volume, some argue.
Still, Gartner analysts say that in enterprise IT categories that can transition to cloud--application software, infrastructure software, business process services and system infrastructure--by 2025, 51 percent of IT spending in these four categories will have shifted from traditional solutions to the public cloud.
Figure 1: Sizing Cloud Shift, Worldwide, 2019 – 2025
Security or criticality probably will remain drivers for private computing, both cloud and traditional. And we will have to see whether total cost of ownership at scale tips decisions back towards private computing, as volume grows for any single entity.
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