Public Cloud Services: A Jekyll and Hyde Impact on IT Spend

Grazed from ChannelPartners. Author: Editorial Staff.

Public cloud services are creating a strange dichotomy, having both a positive and negative impact on IT services spending. That’s according to a new report from Gartner, the tech researcher, which says public cloud services are simultaneously cannibalizing and stimulating demand for external IT services. 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 at 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."…

Nineteen percent of organizations polled in a recent Gartner survey said they are using cloud computing for most of production computing, and 20 percent 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 critical…

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