IT Operational Budgets Jump, Reflecting Shift to Cloud
June 23, 2015
Grazed from DataCenterJournal. Author: Editorial Staff.
IT operational spending plans are rising in 2015 at the fastest rate since the Great Recession, but IT capital spending remains on hold and hiring is muted in what could signal a broad-based shift to cloud computing. "There is a notable shift from IT capital spending to operational spending, which is exactly what we would expect as companies move from software licenses implemented on premises to cloud subscriptions,” said Frank Scavo, president of Computer Economics, Irvine, Calif.
“Economic uncertainty is also at play, but we think the shift to cloud computing is the greater factor.” The findings from the executive summary of this year’s Computer Economics IT Spending and Staffing Benchmarks study indicate investment in cloud-based applications is beginning to have a noticeable impact…
“IT organizations are investing in new applications, and those applications are increasingly in the cloud,” Scavo said. “What they are not spending money on is data center infrastructure.”…
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