Welcome!

Agile Computing Authors: Mark Ross-Smith, Pat Romanski, Liz McMillan, Mehdi Daoudi, AppNeta Blog

Blog Feed Post

Global survey confirms motives behind 2012 IT budget spend and 2013 cloud trends

An independent global survey of 550 CIOs, IT Directors, and senior IT managers has confirmed motives behind their IT budget spend in 2012, while revealing the rate of cloud adoption in 2013.

The research analysis below has been conducted by Savvis and Vanson Bourne. Savvis, http://www.savvis.co.uk, is a global leader in cloud infrastructure and managed virtual hosting solutions.

Budget remained flat while strategic investment increased

Strategic business issues are now back on the agenda, in contrast with two years ago when IT execs were focused on simple survival and the need to navigate the difficult financial waters that still exist today.

Globally, CIOs reported that in 2011 their IT budget was less restrictive than in 2010, when more than half (55 per cent) of organisations faced the challenge of doing more with less IT budget. This dropped to 29 per cent in 2011, and has remained at a similar level (28 per cent) in 2012.

As IT plays a bigger part in business strategy and budget limitation remains high on the agenda, efficient IT leaders are finding opportunities to influence the board and embed IT at a strategic level in their organisation.

Two thirds of industry frontrunners admit to unnecessary infrastructure purchases

Another important piece of insight from the survey is that half of CIOs admit to having IT equipment that they now regret purchasing.

CIOs from the largest organisations are more likely to agree that owning IT infrastructure, instead of virtual hosting through a trusted provider, wasted resources and incurred unnecessary cost. 66 per cent of those with a global turnover of $50-$100billion agreed, compared to 56 per cent with a global turnover of $1-$25billion.

The finding coincides with IT leaders believing that new IT applications and services should be outsourced, suggesting it to be more cost-effective, efficient and competitive. 59 per cent believed this to be the case - an increase of 12 per cent compared to2011, when only 47 per cent agreed new IT applications and services should be outsourced. CIOs now say they expect to save a quarter of their entire IT budget through outsourcing IT.

Globally, the current top three areas to outsource are Test and Development, Back Up and Disaster Recovery and Websites (49 per cent, 44 per cent and 44 per cent respectively). As IT leaders look to the future, between 31 per cent and 38 per cent of organisations are considering outsourcing each area of IT.

A cloud is coming over the horizon in 2013

Looking back over the past year, CIOs have regrets over some IT decisions. Businesses are looking more and more to CIOs and their technology expertise as the engine to drive them forward. Businesses will also be evaluating newer and emerging technologies introduced on a mass adopted scale, such as Big Data analytics, implying the trend for outsourcing IT will have to continue if enterprise IT leaders are to marry business needs and operational IT budgets.

CIOs indicated cloud IT outsourcing will be a major force within 10 years and those who plan to use cloud for the majority of their infrastructure will increase from 4 per cent today to 43 per cent in 10 years' time.

Concern about data security remains the main impediment to cloud adoption, but CIOs are also worried about their ability to manage and control cloud deployments, and some have concerns about the legal and compliance issues that could arise when storing or processing workloads remotely. 2013 could see cloud-first adoption double for the first time, becoming the year that companies visualise the silver lining in the virtual hosting cloud era.

One of the most interesting findings from the 2012 survey is that at least one third of organisations worldwide are not outsourcing IT applications that they feel should be outsourced. IT leaders in the software industry are most likely to keep infrastructure in-house (80 per cent), probably for control reasons, compared to around half that (44 per cent) for the private healthcare sector.

Heads of IT that are working in the cloud interestingly had enhanced data security and reliability in the top three benefits of cloud computing. Scalability continues to drive cloud implementation.

However, for these forecasts to come true, organisations need to first address some key challenges: alleviating data security concerns and convincing stakeholders they can safely relinquish control of their IT infrastructure to a trusted provider in order to see enterprise IT play a dominant role in the future strategic direction on organisations operating around the world.

About the Research
To learn more about the research methodology and download a copy of the full report, please visit: http://www.savvis.co.uk/en-gb/solutions/it-outsourcing/pages/2012-global-it-leadership-report.aspx

All further enquiries should be directed to [email protected] or +44 (0)20 7025 8200

Follow @SavvisEMEA on Twitter for the latest company news, blogs and industry opinions.

Read the original blog entry...

More Stories By RealWire News Distribution

RealWire is a global news release distribution service specialising in the online media. The RealWire approach focuses on delivering relevant content to the receivers of our client's news releases. As we know that it is only through delivering relevance, that influence can ever be achieved.

@ThingsExpo Stories
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...