Gartner: $1 trillion in IT spending moving to cloud. How much is on waste?

Gartner recently reported that by 2020, the “cloud shift” will affect more than $1 trillion in IT spending.

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The shift comes from the confluence of IT spending on enterprise software, data center systems, and IT services all moving to the cloud.

With this enormous shift and change of practices comes a financial risk that is very real: your organization may be spending money on services you are not actually using. In other words, wasting money.

How big is the waste problem, exactly?

The 2016 Cloud Market

The size of the 2016 cloud market, from that same Gartner study, is about $734 billion. Of that, $203.9 billion is spent on public cloud.

Public cloud spend is spread across a variety of application services, management and security services, and more (BPaaS, SaaS, PaaS, etc.) — all of which have their own sources of waste. In this post, let’s focus on the portion for which wasted spend is easiest to quantify: cloud infrastructure services (IaaS).

Breaking down IaaS Spending

Since most compute infrastructure is sold by the hour, that means that for the other 128 hours of the week, you’re paying for time you’re not using. Ouch.

All You Need to Do is Turn Out the Lights

End the waste: schedule off times for your servers now.

Originally published at www.parkmycloud.com on August 4, 2016.

Written by

CEO of ParkMyCloud

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