Cloud spending quickly growing to majority of IT budget, study says

With options from cloud-based ERP to client billing software, the cloud has something to offer companies in nearly all sectors. And now, a diverse array of firms in all areas are indeed embracing the company, as one recent study on spending shows.

An upwards trend into the cloud
Budgets for cloud computing are indeed growing fast, and few doubt the power of new deployments. But the latest numbers show that, by 2016, the technology may account for the majority of new IT spending, according to Gartner. The latest study builds on earlier research that predicted by the end of 2017, slightly fewer than half of all major enterprises will have hybrid cloud deployments. It’s part of a changing business landscape that companies need to account for, according to Chris Howard, research vice president at Gartner.

“Overall, there are very real trends toward cloud platforms, and also toward massively scalable processing,” said Howard. “Virtualization, service orientation and the Internet have converged to sponsor a phenomenon that enables individuals and businesses to choose how they’ll acquire or deliver IT services, with reduced emphasis on the constraints of traditional software and hardware licensing models. Services delivered through the cloud will foster an economy based on delivery and consumption of everything from storage to computation to video to finance deduction management.”

Widespread growth
With so many innovations in deployments continually arising, companies will be increasing budgets at a massive rate, according to Howard. India especially is expected to have massive growth in the area, with an expected compound annual growth rate of 33.2 percent in the five years between 2012 and 2017.

There remains, according to Howard, a perception among those who do not directly utilize it to think of the cloud as a monolithic process, when in fact there are many diverse elements to the cloud, many of which compliment one another. There are different strategies for successful implementation, he notes, from public clouds to the hybrid clouds and private clouds.

Companies have much to gain from the cloud, and should investigate the many different offerings it has to decide whether they stand to gain from the technology. If your company is considering moving forward in the area, consider BMI Cloud Solutions. With years of expertise in the area, as well as award-winning tools such as Kenesto and Pardot, BMI can help you company construct the optimal solution to your challenges.