Thursday, February 3, 2011

Cloud Computing Has Become A Significant IT Cost Containment Priority

A report that finds continued stabilization in IT spending -- with a majority of survey respondents planning to increase spending over 2010 levels -- also finds increased use of server virtualization, managing data growth, information security, major application deployments and upgrades, and improving data backup and recovery are the top five strategic IT initiatives for their organizations over the next 12-18 months.

The most significant change in the IT priorities of respondents is the increased importance attached to cloud computing services. Compared to 2010 survey results, the use of cloud infrastructure has increased from number 22 to number 12 on respondents' list of relative IT priorities, and the increased use of Software-as-a-Service (SaaS) for application delivery has risen from number 24 to number 14.

Comment from John McKnight, vice president of research at Enterprise Strategy Group: One key finding of this year's research is the ongoing emergence of cloud computing as a viable cost containment strategy for IT groups. ESG has witnessed a steady three-year increase in organizations looking to increase their use of cloud computing as a more cost-effective alternative to traditional IT delivery methods. Indeed, companies looking to reduce IT costs are now more likely to be considering cloud services than they are to be reducing IT headcount, a complete reversal of organizational priorities from just two years ago, when shedding staff was one of the first places CIOs looked to trim costs.

About the survey: The Enterprise Strategy Group (ESG), an IT industry analyst and business strategy firm, issued the report (2011 IT Spending Intentions Survey), based upon data gathered from 611 North American and Western European senior IT professionals from midmarket (100 to 999 employees) and enterprise-class (1,000 employees or more) organizations.

Contact: http://www.esg-global.com

No comments:

Post a Comment