Cloud computing having major impact on enterprise-level spending

Cloud computing having major impact on enterprise-level spending

March 6

Several solutions, including cloud computing, are greatly influencing the overall IT landscape, especially in terms of enterprise spending for technology. A recent report by IDC predicted that enterprise IT budgets for services, software and hardware will total approximately $474 billion in 2013, representing a 6 percent increase from last year.

In addition to cloud computing helping to keep this total strong, Ted Dangson, the research firm’s vice president of global technology and industry research organizations (GTIRO), also named big data, analytics and mobility as having a major influence on enterprise spending.

“Global uncertainty has subdued the willingness of firms to expand their IT budgets,” said Dangson. “Yet we’ve seen continued investments by companies as they prioritize the replacement of outdated technology, and pursue strategic IT initiatives focused on big data and analytics, cloud computing and mobility.”

Cloud computing has quickly established itself as a building block for many organizations looking to operate more effectively and replace legacy equipment without going over budget. As the technology matures even further, its impact will likely become even greater.

Cloud computing helps firms save time
One of the most popular reasons why businesses are adopting the cloud is because of the solution’s cost-effectiveness. In addition to helping firms lower operating costs by avoiding the need to purchase on-site infrastructure, the cloud is also a time-saving option, according to Rob LaMear IV, CEO and founder of In a recent interview with Cloud Computing Journal, LaMear explained that hosted environments provide a competitive advantage for several reasons.

Simply put: “Time is money,” according to LaMear, and the cloud helps organizations gain market share faster than competitors. The first firm to achieve this goal can potentially control between 70 and 80 percent of the market, much like what Apple has achieved in recent years with its popular products.

Although the benefits of the cloud are great, some businesses are still worried about compliance and regulation concerns. LaMear told Cloud Computing Journal that companies must contract service providers that are open to working with their auditing team to avoid any surprises with their cloud deployments.

Small and medium-sized businesses (SMBs) are particularly warming to the idea of implementing cloud computing. LaMear told the news source that he expects SMBs to become fully comfortable with adopting hosted environments with fewer migration problems.


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