Loading

Report: Cloud computing bolsters IT investments

Largely driven by the ongoing global economic crises, worldwide IT spending will slow down slightly in 2012. According to a new report by Gartner, IT investments will reach $3.6 trillion by the end of this year, up only 3 percent from 2011. Meanwhile, global IT services spending will approach $864 billion in 2012, representing only a 2.3 percent increase from 2011.

"While the challenges facing global economic growth persist - the eurozone crisis, weaker U.S. recovery, a slowdown in China - the outlook has at least stabilized," Gartner research vice president Richard Gordon said. "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."

Enterprise software is also poised to have a slower growth, with investments increasing from $269 billion in 2011 to $281 billion in 2012.

Despite these issues, public cloud computing continues to be a technology in which decision-makers are willing to invest. Gartner analysts forecast spending on the public cloud to grow to $109 billion by the end of this year, up from $91 billion in 2011. This trend will continue in the coming years and confidence in the cloud flourishes, as the enterprise is predicted to invest approximately $207 billion in the public cloud by 2016.

"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," Gordon said.

The global cloud computing market is estimated to reach more than $121 billion in 2015, up from roughly $38 billion in 2010, according to MarketsandMarkets. While companies may be slightly more frugal in the coming years, investments in the cloud will continue to drive IT spending.

Related Articles

Hello!

  • Welcome to GoGrid!
  • I'm a Cloud Infrastructure and Big Data Solutions expert.
  • What questions do you have today?
Call us at 1(877) 946-4743 (US & Canada)
IN THE NEWS

How wearables can change the big data game

Do big data wearables make sense for your company?

Read more

GoGrid Customers
GoGrid Compliance