A new Morgan Stanley CIO Report is out with a revised list of digitalization winners and losers.The shift to the cloud is increasing and creating a painful new reality for traditional IT vendors, except perhaps Cisco (CSCO). Check it out here.

From Becky Peterson, Business Insider, July 1, 2017:

As more and more companies transition to the cloud, Oracle and IBM may find themselves in a fight for the bottom.

The two technology vendors are set to lose out considerably in IT budgets over the next three years as the result of the shift to cloud, according to the June AlphaWise/Morgan Stanley CIO report. CIOs expect that 46% of their workloads will be in the cloud by the end of 2020, while only 34% will be on-premise.

Between now and then, the 100 US and European CIOs surveyed expect to decrease spending on IBM by 13%, and to decrease spending on Oracle by 11%. 

Note how Cisco is positioned as a top benefactor of digitalization, after Salesforce (CRM) and well ahead of VMware (VMW). That’s an impressive shift for a legacy networking vendor who has notably struggled with the shift from hardware to cloud and software-centric IT.  This could be at least indirect acknowledgement that the giant is successfully repositioning itself as a new kind of software-centric cloud player.