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Cloud Computing: IT Dollars Shift To Utility Computing
The reliance of organizations on cloud computing continues to rise, as supported by a new survey by Gartner Inc. The global survey found that a little more than ten percent of all spending on external service providers (ESPs) is going towards cloud-computing services. That percentage has been growing. Cloud spending can be broken down into three main categories with about one-third coming from the renewal of services from the previous year, one-third coming as new spending, and about 14 percent as spending that had been diverted from another budget.
- 39 percent of organizations have indicated that cloud-based computing initiatives are now key to their organization.
- 46 percent of organizations using cloud services say that they plan to expand their use
- Of those increasing spending, 43 percent are targeting private clouds and 32 percent are focusing on public clouds
Bob Igou, research director at Gartner and author of the report, said that “Overall, these are healthy investment trends for cloud computing. This is yet another trend that indicates a shift in spending from traditional IT assets such as the data center assets and a move toward assets that are accessed in the cloud. The trends are good news for IT services providers that have professional services geared to implementing cloud environments and those that deliver cloud services. It is bad news for technology providers and IT services firms that are not investing and gearing up to deliver these new services seeing an increased demand by buyers.”
