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Cloud contributes to software spending

The advent of social, mobile and cloud computing technologies has given rise to the increased demand for innovative software that can strengthen operations and potentially reduce costs in today's tough economy. A recent report by Gartner highlighted how the cloud and the Software as a Service (SaaS) model in particular are driving spending for advanced applications.

"Results from the survey indicate that software spending will increase modestly worldwide through the 2014 budget year, with new software sales (on-premises) and SaaS driving this increased spending," said Hai Hong Swineheart, research analyst at Gartner. "However, significant regional differences in priorities and drivers will require vendors to pursue market-specific strategies."

Gartner noted how companies around the world will take varying approaches to the cloud and leveraging sophisticated software. These variations derive from a number of perceptions, including regional compliance needs, ongoing economic instability and current infrastructure evaluations. North America, Western Europe and other areas with mature IT, for example, expect lower budget increases through 2014 than emerging markets with immature IT infrastructure.

These differences also mean organizations will invest in varying cloud offerings.

"It's very clear that mature regions are focusing on public cloud computing, while emerging regions are focusing on private cloud computing," Swineheart said. "This could be due in part to an immature telecommunications infrastructure in some emerging countries while data security is a persistent concern related to public cloud services among our clients in developing-region enterprises."

A separate report by IDC also highlighted the growth of the private cloud, as the industry is forecast to expand at a compound annual growth rate of more than 50 percent between 2012 and 2016, increasing to roughly $24 billion. SaaS currently claims the largest seat in the public cloud market and will likely continue to do so in the coming years as decision-makers throughout the globe look for the most advanced applications available.

As the business world becomes increasingly competitive, using the cloud will give executives the unique opportunity to provide individuals with access to software from virtually anywhere at any time, often for a lower price than traditional solutions. Forward-thinking decision-makers recognize the benefits associated with using the cloud and will continue investing in the technology to gain a competitive advantage and progress in today's constantly shifting IT landscape.

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