Gartner’s latest quarterly IT spending forecast delivers big news about the cloud’s role in global IT expenditures. The firm expects worldwide IT spending to reach $3.8 trillion this year, rising 3.2% over 2018, as the company points out here. A major driver of this growth is the enterprise software segment, which is projected to increase 8.5% this year and another 8.2% in 2020 – reaching $466 billion that year. Organizations are expected to shift more of their budgets to software-as-a-service (SaaS) in 2019.

And as CIO reported, most of the spending in the enterprise software category this year will be on cloud computing infrastructure and applications – $214 billion to be exact. That’s a hike of 17.5% compared to 2018. Much of this spending is coming from the U.S., which is contributing nearly 60% of current global expenditures on cloud.

So, what does this mean for enterprises? It demonstrates the cloud’s major role in the worldwide shift to digital, showing that the preferred timing for this transition – in order to stay ahead of or on par with the competition – is truly now. From our perspective, this forecast falls perfectly in line with the demand we’re seeing for digital transformation from forward-thinking companies. We work with enterprises across all verticals to leverage the cloud, from migrating workloads out of on-premise data centers to adopting G Suite and other cloud solutions to building proprietary cloud-based applications.

Our latest case study shows how we worked with our client ADARA to migrate 3 data centers and over 100 terabytes of historical travel data to Google Cloud Platform (GCP). This move saved ADARA 30% in operational costs while future-proofing the company for long-term growth with scalable cloud solutions. In fact, we just earned Google Cloud’s Cloud Migration Specialization (our seventh specialization), which demonstrates our proven expertise in delivering a seamless transition to GCP – from building the foundational architecture to the actual mechanics of migration.

Moving to the cloud also enables companies to incorporate machine learning and artificial intelligence into their strategies, which can provide additional functionality and insights into customer preferences and demands. Enterprises that embrace the cloud and implement these tools will gain a competitive edge, while those that fail to do so may soon find themselves scrambling to catch up.

Are you considering a move to the cloud? Check out our guide to building the foundation for success in the cloud for tips. And reach out to us here to talk through the results your enterprise could see by further harnessing scalable, cost-effective cloud-based solutions.

[1] Gartner Market Databook, 4Q18 Update. https://www.gartner.com/document/3897276