Companies have decreased their spending on traditional system deployments to fund their cloud migration activities. Indeed, the IaaS market—including Amazon Web Services, Microsoft, and Google—has been exploding with growth over 40 percent in revenue per year since 2011, according to Gartner. And Gartner forecasts 300 percent growth for IaaS between 2016 and 2020.
What’s most astounding is the shift in IT spending. The on-premises budgets for IT infrastrcuture will fall from 70.2 percent in 2016 to 57 percent by 2018, according to IDC—an 18.8 percent decline. In other words, the IaaS portion of IT infrastructure spend is rising from 29.8 percent to 43 percent—a 44.2 percent increase.