A recent Gartner report suggests that the COVID-19 crisis is causing demand for cloud solutions from major vendors to soar. Data indicate that spending on cloud solutions rose 34 percent in Q1 2020 to a total of $31 billion despite falling corporate revenues.
The flurry of spending comes on the back of the need to operate capable remote workforces. Companies need to provide systems that will enable their employees to remain productive from any location. The current upsurge in demand for cloud solutions is a continuation of a trend already underway in the pre-crisis era.
Companies That Invest In The Cloud Are At An Advantage Post-Crisis
According to Gartner, companies that continue to invest in digital transformation are more than 1.4 times more likely to have an advantage coming out of the present crisis. The research organization argues that firms with highly developed cloud-based IT networks can marshal their resources in response to disease threats and continue trading, even when physical premises are vacant.
McKinsey argues that the response to the pandemic will go through five distinct phases. Resolve and resilience – the first two – are already largely behind us. Companies committed to fighting the threat posed by COVID-19 in March and then developed systems to help them continue trading in the following weeks. Now they are entering the final three phases – return, reimagination, and reform – each of which has specific characteristics.