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How Cloud Solves the IT Maintenance Dilemma – Part 1

It is striking how substantial the average IT maintenance budget is

It’s only natural that most organizations split their IT budget between new technology to enhance business operations and maintenance of their existing infrastructure. Although the actual split varies across organizations, it is striking how high the typical percentage of budget allocated to IT maintenance is. According to Enterprise Strategy Group’s 2012 Spending Intentions Survey, organizations plan to spend a whopping 60-72% of IT budget maintaining existing infrastructure in 2012. Within that ESG survey group, the highest percentage represents organizations with decreasing IT budgets while the lowest percentage represents organizations with increasing IT budgets. See the results in the clickable chart below:

A simple explanation for the “maintenance-heavy” budget split may be that most organizations accumulate more and more infrastructure over time. Much of the infrastructure houses data, a result of ever increasing demands for storage capacity.

For businesses focused on enhancing their customer offerings and experience, having the vast majority of their IT budgets spent outside of their primary focus is problematic.  Put simply, if creating value for customers is the primary businesses objective, the best use of IT resources is not infrastructure maintenance.

So does the availability of cloud shift IT budget allocations away from maintenance toward new technologies?  While cloud doesn’t necessarily make the cost of maintenance disappear, it can free up IT staff to focus on new technologies that deliver the operational enhancements that businesses are seeking.

In Part 2 of this series, we will examine how cloud addresses the maintenance dilemma for data storage…

Read the original blog entry...

More Stories By Nicos Vekiarides

Nicos Vekiarides is the Chief Executive Officer & Co-Founder of TwinStrata. He has spent over 20 years in enterprise data storage, both as a business manager and as an entrepreneur and founder in startup companies.

Prior to TwinStrata, he served as VP of Product Strategy and Technology at Incipient, Inc., where he helped deliver the industry's first storage virtualization solution embedded in a switch. Prior to Incipient, he was General Manager of the storage virtualization business at Hewlett-Packard. Vekiarides came to HP with the acquisition of StorageApps where he was the founding VP of Engineering. At StorageApps, he built a team that brought to market the industry's first storage virtualization appliance. Prior to StorageApps, he spent a number of years in the data storage industry working at Sun Microsystems and Encore Computer. At Encore, he architected and delivered Encore Computer's SP data replication products that were a key factor in the acquisition of Encore's storage division by Sun Microsystems.

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