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IDG: Roughly one third of IT budgets go to cloud by 2021
by Paul Davenport Paul Davenport on

Enterprise cloud adoption continues its rapid acceleration in 2020 as a new survey from IDG found that cloud investments will account for 32 percent of total IT budgets by 2021.

The report, which is compiled of reader respondents from CIO, Computerworld, CSO, InfoWorld and Network World tech buyer audiences, found that cloud spending is up 59 percent from 2018 levels, topping $73.8 million in 2020.

Ninety-two percent of IT leaders surveyed said that their IT environment – ie. network infrastructure, applications, etc. – relies on the cloud today, while IDG analysts forecast that figure will grow to 95 percent within the next 18 months.

So as much as it may feel like cloud computing already dominates any enterprise networking conversation, there are likely still more cloud transformations on the horizon at even the most SaaS-saturated organizations.

Enterprises with more than 1,000 employees are leading the charge toward cloud adoption, as the report found their average investment topping $158 million in 2020. The top three areas where enterprises are focusing cloud migration are: Disaster recovery & high availability, identity & access management, and content delivery & media processing.

This all adds up as many companies have had to change gears and shift IT investments to better support a rapidly decentralized workforce in response to the global pandemic. Larger enterprises, in particular, have benefited greatly from migrating key workflows from legacy, on-prem tools to cloud-delivered solutions to increase scalability and flexibility as their footprints decentralized.

And while cloud migration had been underway at many enterprises long before global events forced accelerated WFH transformations, this “rush” has proven to be a successful test case of enterprise IT agility. This has led many IT decision makers to rethink their broader investments going forward to focus more squarely on cloud.

As we’ve discussed recently, the push to support WFH has been the major influencer in buyer decisions across the enterprise, as teams are continuing to invest in cloud solutions that are proven to be effective whether teams are home or in the office. But it’s critical that as long as users continue accessing the enterprise network via their residential WiFi, IT is leveraging solutions that can deliver visibility into that “last mile” residential connectivity where the bulk of performance issues take place in the WFH era.

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Filed Under: industry insights

Tags: cloud, cloud, remote workforce, remote worker, remote work, WFH, work from home, end user experience, network monitoring, network performance monitoring, network management, cloud computing, cloud migration, cloud adoption

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