Welcome!

Agile Computing Authors: Elizabeth White, AppDynamics Blog, Liz McMillan, John Basso, Igor Drobiazko

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
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, will discuss how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technol...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
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 Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.