August 19, 2019
August 19, 2019
Contributor: Laurence Goasduff
To grow cloud computing spending, technology and service providers need to prioritize an organizations cloud ambitions over countrywide priorities.
Cloud computing initially emerged in the United States. Since 2015, the U.S. has been the leader in cloud adoption and has set the pace for such adoption around the world. However, not all countries are on par with the U.S. In fact, by 2022, cloud adoption for all other countries will lag behind the U.S. by one to seven or more years. Also in 2022 in the U.S., 14% of total IT spending will be on cloud services.
Technology and service providers should prioritize investments by targeting countries and regions with current or planned hyperscale data centers. In parallel, and to fuel cloud spending, they need to focus on organization-specific cloud ambitions, as countrywide opportunities are too divergent.
Gartner research on cloud spending and growth per country shows where cloud adoption is happening the fastest and which countries are slower to adopt.
Countries trailing behind the U.S. by less than three years are categorized as tracking countries and include the U.K. and The Netherlands. Their cloud spending rates are set to rise 2.8 and 3.2 percentage points from 2019 to 2022, respectively. In 2022, the U.K. cloud spending rate will reach 11.5%. In The Netherlands, it will amount to the same rate of 11.5%.
Data centers in Europe were established early on in Ireland, the U.K. and The Netherlands and drove early adoption of cloud services as local organizations took advantage of greater elasticity, self-service provisioning and a flexible, pay-per-use model.
Despite a cloud spending compounded growth rate of 34.8% through 2022, China remains a lagging country (the group lagging by four or more years behind the U.S.). Beyond 2023, China is predicted to become a tracking country.
Through 2022, Japan will be positioned among the resisting countries that lag by seven or more years behind the U.S. While the rate of cloud spending in Japan is expected to rise from 3.0% in 2019 to 4.4% in 2022, many obstacles to cloud adoption exist, such as cultural biases and legislative and regulatory impediments, making it difficult for organizations in Japan to embrace cloud.
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