According to IT analyst house, IDC, total cloud infrastructure spending will increase by 21% – to $32bn this year. These latest figures mean spending on cloud infrastructure will account for approximately a third of all IT infrastructure spending – up from 28% in 2014. Cloud computing has been a disruptive phenomenon to the infrastructure market over the past few years with these latest figures from IDC highlighting this even further. The growing investment into cloud technology, such as servers, hardware and software, may mean more companies will seek to gain a better understanding of the Total Cost of Ownership (TCO) of IT.
Many award-winning applications, including Telecom Expense Management (TEM) and Market Data Management (MDM) solutions, can be delivered as Software-as-a-Service (SaaS) via the cloud. The extensible nature of these services means customers are able to add support for emerging technology costs, such as the public cloud. What’s more, customers with TEM or MDM applications already in place, will find it is easier to expand the features when the application is cloud-based.
It’s clear to see why cloud infrastructure spending is on the rise, with more and more organisations of all sizes adopting and implementing cloud strategy. It has the potential to make IT organisations more responsive than ever and promises economic advantages. It is clear that migration to cloud is commonly associated with cost savings, but Gartner’s 2014 CIO Agenda survey found that only 14% of respondents cited cost savings as their main reason for cloud migration, with the top reason being agility.
In today’s complex business landscape, being agile in the face of changing business conditions is the norm and it is as a valued commodity for organisations. As cloud providers offer self-service and immediate updates, organisations can respond to potential business threats or changes in the business landscape in a much more efficient, and time-sensitive manner.
Another advantage of the cloud in today’s global economy is the ability to access the cloud from any location. The ability to sync up documents and share apps allow for organisations to be more collaborative and a recent study by Frost and Sullivan found that companies which invested in collaborative technologies, such as the cloud, had a 400% return on investment.
The growing investment in cloud infrastructure is further emphasised, with spending expected to top $52bn by 2019 according to IDC. This will inevitably mean more companies are to adopt cloud technologies in the next five years. Evolution of the cloud will see organisations – particularly multinational companies, seeking enhanced tools for monitoring Total Cost of Ownership of IT – an area in which many TEM co’s have vast experience and advanced analytical software to help manage the process
Thanks to Ben Mendoza for the post !