Gartner: Public cloud services are both cannibalizing and stimulating demand for external IT services spending
November 4, 2012
Public cloud services are simultaneously cannibalizing and stimulating demand for external IT services spending, according to Gartner, Inc. Infrastructure as a service (IaaS) adoption — the most basic and fundamental form of cloud computing service — has expanded beyond development and test use cases.
"Public cloud adoption is accelerating and public cloud services do, and will, cannibalize IT services spending in the coming years, most notably in the data center," said Bryan Britz, Research Director, Gartner. "At the same time, public cloud adoption offers service providers the opportunity to accelerate externalization of spending for the non-public cloud workloads and IT operations and service management responsibilities in tandem with clients pursuing a public cloud initiative."…
A recent Gartner survey found that 19 percent of organizations are using cloud computing for most of production computing, and 20 percent of organizations are using storage as a service for all, or most, storage requirements. Gartner surveyed 556 organizations, from June 2012 through July 2012, across nine countries and multiple industries where cloud planning is a critical issue.
The survey found that public cloud adoption varies by service. IaaS is moving from lower-risk pilot programs and into production environments. Organizations’ stated plans to adopt IaaS in the near future reinforce the importance of IaaS in an overall portfolio of infrastructure service offerings…
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