Gartner : Cloud Computing Spend Update

Friday, October 8, 2010

Cloud computing services accounted for 12.5% of overall IT budgets, according to a research report released this week by Gartner.  The report found that 39% of those surveyed allocated portions of their IT budgets for cloud computing, while 44% of those surveyed said they procured services from outside providers.  Of those, 46% said they will increase that spending in the next budget year by an average of 32%.  Gartner said it surveyed more than 1,500 IT professionals throughout 40 countries between April and July of this year.

Another key finding of the report revealed that one-third of spending came from last year’s budget; another third was new spending; and 14% was diverted from a different budget category.  “Overall, these are healthy investment trends for cloud computing,” said Gartner analyst Bob Igou, in a statement.  “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.  “Igou, who authored the study, pointed out that 24.1% of budgets covered data center systems and business applications, 19.7% for PC and related gear, 13.7% for telecom costs, and 30% for IT personnel.  For the next budget year, the report found, 40% will increase spending on development of cloud-based applications and solutions, while 56% will spend the same amount.  Forty three% said they will increase spending on implementation of cloud computing for internal and/or restricted and 32% will increase spending on such environments for external and/or public use.

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