By Alison DeNisco
A new report predicts that enterprise IT budgets for hosting and cloud services are going to rise by 6% in the new year. It’s further demonstration that third party vendors are increasingly relied upon for infrastructure—whether that’s a good thing or a bad thing depends on your organization or industry.
Alison DeNisco writes, “The cloud is continuing its spread into the enterprise: In 2017, 34% of IT budgets will go toward hosting and cloud services, according to a new report from 451 Research. In 2016, enterprise IT spent 28% of budgets on these services.
“The 6% increase demonstrates an increasing reliance on third party sources for infrastructure, application management, and security services, the report stated.
“The quarterly report, Voice of the Enterprise: Hosting and Cloud Managed Services, surveyed 580 IT professionals worldwide, combined with information and interviews from a panel of 45,000 senior IT buyers and enterprise technology executives.
“While it may seem as though cloud providers primarily offer infrastructure services, the report found that only 31% of IT budget spending on cloud goes toward infrastructure. Meanwhile, nearly 70% of spending is used on the following services:
- Application services (42%)
- Managed services (14%)
- Security services (9%)
- Professional services for cloud enablement (5%)
“Further, a large amount of hosting and cloud services budget spending goes to unmanaged or self-managed infrastructure or application services, the report stated.”