Cloud Is ‘Bright Spot’ in Global IT Spending
Grazed from Wall Street Journal. Author: Clint Boulton.
Gartner said IT spending is expected to rise 3% to $3.6 trillion in 2012, largely on the strength of increased spending on cloud computing. The outlook for this year was raised from an earlier forecast of 2.5% growth. Nonetheless, the growth for this year will be much slower than the 7.9% gain in 2011, as economic turmoil in Europe, and slowdowns in China and the U.S. put pressure on IT budgets.
Cloud computing, which lets CIOs offload their hardware hosting and maintenance to a vendor, is one of the “bright spots” in IT spending, said Gartner analyst Richard Moore. Spending on the cloud is expected to rise to $109 billion this year from $91 billion last year. Moore said cloud-based business process software accounts for the bulk of cloud spending by enterprises, followed by platform as a service, software as a service and infrastructure as a service. Moore said cloud spending could nearly double to $207 billion by 2016…


The database category hasn’t been all that exciting over the past 20 years, with market leaders Oracle, IBM, Microsoft, Sybase (now SAP trading off incremental updates every year or so. But that period of stasis ended with the advent of cloud computing, open source software and big data — a perfect storm that reinvigorated the field.