Cloud computing investment remains resilient

Cloud computing investment remains resilient

Cloud computing investment remains resilient

IT spending on cloud computing looks set to remain resilient, despite the global economic climate, according to new research.

According to Gartner, a specialist IT research company, worldwide IT spending will increase to $3.6 trillion this year, up 3 per cent on last year. Gartner’s latest IT spending outlook has been revised up slightly from its previous 2.5 per cent projection.

Richard Gordon, research vice president at Gartner, said, "While the challenges facing global economic growth persist — the eurozone crisis, weaker US recovery, a slowdown in China — the outlook has at least stabilised.”

He added, “There has been little change in either business confidence or consumer sentiment in the past quarter, so the short-term outlook is for continued caution in IT spending."

However, despite this, Gartner does expect spending on public cloud services in particular to grow to $109 billion this year, up from $91 billion last year. It predicts that enterprise public cloud services spending will reach $207 billion by 2016.

Richard Gordon said, “Business process as a service (BPaaS) still accounts for the vast majority of cloud spending by enterprises, but other areas such as platform as a service (PaaS), software as a service (SaaS) and infrastructure as a service (IaaS) are growing faster.”

According to Gartner, 75 per cent of Global 500 businesses use its spending forecasts to inform their technology-buying decisions. To create the forecasts, hundreds of international Gartner analysts look at different market segments.

Amongst the other findings was that spending on IT services is set to reach $864 million in 2012, up 2.3 per cent from last year. The report finds that, “Demand for consulting services is expected to remain high due to the complexity of environments for global business and technology leaders.”

Businesses looking to move services into the cloud should evaluate the performance of their existing network and consider setting up a leased line or MPLS network.

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