Wednesday, February 23, 2011

Budgets On The Rise For Many IT Technologies, Including Cloud Computing

More than 300 top IT executives who responded to a recent poll indicated that IT investments that enable business process innovations continue to be a top priority (36 percent in 2011 and 33 percent in 2010), followed by lower business operation costs (25 percent), creating top line revenue growth (21 percent),and managing IT infrastructure more efficiently (17 percent).

While the top three technologies currently in production -- mobile/wireless, server virtualization and ERP -- remain the same year-over-year, the results demonstrate a significant increase in the number of participants implementing these technologies, showing additional IT spending. One other technology shift can be seen in investments in storage virtualization which climbed steeply, from 25 percent in 2010 to 45 percent in 2011.

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Top Technologies in Production   2011             2010
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Mobile/Wireless                              58 percent     48 percent
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Server Virtualization                        56 percent     42 percent
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ERP                                               45 percent     39 percent
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Over the next twelve months budgets will increase for many technologies, especially those that are actively being researched by participants. Technologies that respondents report an investment increase are cloud computing services (61 percent), business intelligence and analytics (52 percent), server virtualization (50 percent) and desktop PC virtualization (50 percent); where as printing/output services will see the most decrease (21 percent).

Comment from Maryfran Johnson, editor in chief, CIO magazine and events: We noticed in these findings how the stabilizing economy is pushing revenue growth even higher as a key focus area for CIOs. This is an important strategic shift for CIOs as IT's contribution to business growth moves to a higher priority than cost-cutting and streamlining, which was a primary focus last year.

Comment from Adam Dennison, associate publisher, CIO: The CIO Magazine Tech Poll showcases what I have been hearing from CIOs at our events, IT budgets are stabilizing and growing, allowing projects to be completed and new technologies implemented. IT executives continue to investigate ways to improve efficiencies and increase knowledge which is confirmed with the cloud computing and business intelligence and analytics spending increases.

About the survey: The CIO Magazine Tech Poll is conducted twice a year, among heads of IT, to gauge which technology areas are the focus of IT in the coming year and to measure the direction of spending within those areas. The current CIO Magazine Tech Poll was conducted between January 6, 2011 and January 18, 2011 through the CIO LinkedIn Forum. Results are based on 305 respondents who indicated they are the top IT executive at their organization or business unit. The margin of error on a sample of a sample size of 305 is +/- 5.6 percent.

Contact: http://www.idgenterprise.com

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