Welcome!

Agile Computing Authors: Elizabeth White, Yeshim Deniz, ManageEngine IT Matters, Liz McMillan, Carmen Gonzalez

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
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.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that EARP Integration 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. EARP Integration is a passionate software house. Since its inception in 2009 the company successfully delivers smart solutions for cities and factories that start their digital transformation. EARP provides bespoke solutions like, for example, advanced enterprise portals, business intelligence systems an...
SYS-CON Events announced today that Progress, a global leader in application development, 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. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, 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. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
SYS-CON Events announced today that Cloud Academy 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. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, 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.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, will motivate why realizing the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insigh...
SYS-CON Events announced today that Interoute 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. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assis...
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo Silicon Valley Call for Papers is now open.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that Progress, a global leader in application development, 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. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that Tintri, Inc, a leading provider of enterprise cloud infrastructure, 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. Tintri offers an enterprise cloud platform built with public cloud-like web services and RESTful APIs. Organizations use Tintri all-flash storage with scale-out and automation as a foundation for their own clouds – to build agile development environments...
SYS-CON Events announced today that DivvyCloud 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. DivvyCloud software enables organizations to achieve their cloud computing goals by simplifying and automating security, compliance and cost optimization of public and private cloud infrastructure. Using DivvyCloud, customers can leverage programmatic Bots to identify and remediate common cloud problems in rea...
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...