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IDC: Cloud Acccounts For 1/3 of IT Spend

IDC: Cloud Acccounts For 1/3 of IT Spend

posted in ProductProduct ● 30 Jul 2015

Cloud backup solutions and cloud computing are clearly growing in popularity, with new research revealing that expenditure in this regard took up one-third of all IT budgets in the first three months of the year, with the market as a whole growing by 25.1 percent over the quarter.

This is according to analyst firm IDC Research, which found that the biggest hike was seen in infrastructure sales for public cloud, which grew by 25.5 percent to reach some $3.9 billion, CloudPro reports.

IDC research manager for server, virtualisation and workload research Kuba Stolarski was quoted by the news source as saying: “Both private and public cloud infrastructures have been growing at a similar pace, suggesting that customers are open to a broad array of hybrid deployment scenarios as they modernise their IT for the third platform.”

Off the back of these figures, IDC is now predicting that public IT cloud services will grow to more than $127 billion by the year 2018. It’s no surprise that cloud computing is growing in popularity as there are many and varied benefits that customers can reap. These include reduced risk, increased flexibility and the opportunity to shift IT investment to operating expenses (OPEX) over capital expenses (CAPEX).

Cloud computing can make great financial sense. Traditionally, chief financial officers have preferred CAPEX over OPEX because they can take advantage of depreciation and amortisation of investments over a lengthy period of time. But now OPEX has a greater role to play in IT expenditure and approved budgets because IT infrastructure is becoming less predictable.

Organisations now have more options available to them because they can afford state-of-the-art technology without having to find a huge amount of cash to pay for it upfront.

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