Welcome!

Cloud Expo Authors: Bob Gourley, Pat Romanski, Aria Blog, Srinivasan Sundara Rajan, Roger Strukhoff

Blog Feed Post

Global survey confirms motives behind 2012 IT budget spend and 2013 cloud trends

An independent global survey of 550 CIOs, IT Directors, and senior IT managers has confirmed motives behind their IT budget spend in 2012, while revealing the rate of cloud adoption in 2013.

The research analysis below has been conducted by Savvis and Vanson Bourne. Savvis, http://www.savvis.co.uk, is a global leader in cloud infrastructure and managed virtual hosting solutions.

Budget remained flat while strategic investment increased

Strategic business issues are now back on the agenda, in contrast with two years ago when IT execs were focused on simple survival and the need to navigate the difficult financial waters that still exist today.

Globally, CIOs reported that in 2011 their IT budget was less restrictive than in 2010, when more than half (55 per cent) of organisations faced the challenge of doing more with less IT budget. This dropped to 29 per cent in 2011, and has remained at a similar level (28 per cent) in 2012.

As IT plays a bigger part in business strategy and budget limitation remains high on the agenda, efficient IT leaders are finding opportunities to influence the board and embed IT at a strategic level in their organisation.

Two thirds of industry frontrunners admit to unnecessary infrastructure purchases

Another important piece of insight from the survey is that half of CIOs admit to having IT equipment that they now regret purchasing.

CIOs from the largest organisations are more likely to agree that owning IT infrastructure, instead of virtual hosting through a trusted provider, wasted resources and incurred unnecessary cost. 66 per cent of those with a global turnover of $50-$100billion agreed, compared to 56 per cent with a global turnover of $1-$25billion.

The finding coincides with IT leaders believing that new IT applications and services should be outsourced, suggesting it to be more cost-effective, efficient and competitive. 59 per cent believed this to be the case - an increase of 12 per cent compared to2011, when only 47 per cent agreed new IT applications and services should be outsourced. CIOs now say they expect to save a quarter of their entire IT budget through outsourcing IT.

Globally, the current top three areas to outsource are Test and Development, Back Up and Disaster Recovery and Websites (49 per cent, 44 per cent and 44 per cent respectively). As IT leaders look to the future, between 31 per cent and 38 per cent of organisations are considering outsourcing each area of IT.

A cloud is coming over the horizon in 2013

Looking back over the past year, CIOs have regrets over some IT decisions. Businesses are looking more and more to CIOs and their technology expertise as the engine to drive them forward. Businesses will also be evaluating newer and emerging technologies introduced on a mass adopted scale, such as Big Data analytics, implying the trend for outsourcing IT will have to continue if enterprise IT leaders are to marry business needs and operational IT budgets.

CIOs indicated cloud IT outsourcing will be a major force within 10 years and those who plan to use cloud for the majority of their infrastructure will increase from 4 per cent today to 43 per cent in 10 years' time.

Concern about data security remains the main impediment to cloud adoption, but CIOs are also worried about their ability to manage and control cloud deployments, and some have concerns about the legal and compliance issues that could arise when storing or processing workloads remotely. 2013 could see cloud-first adoption double for the first time, becoming the year that companies visualise the silver lining in the virtual hosting cloud era.

One of the most interesting findings from the 2012 survey is that at least one third of organisations worldwide are not outsourcing IT applications that they feel should be outsourced. IT leaders in the software industry are most likely to keep infrastructure in-house (80 per cent), probably for control reasons, compared to around half that (44 per cent) for the private healthcare sector.

Heads of IT that are working in the cloud interestingly had enhanced data security and reliability in the top three benefits of cloud computing. Scalability continues to drive cloud implementation.

However, for these forecasts to come true, organisations need to first address some key challenges: alleviating data security concerns and convincing stakeholders they can safely relinquish control of their IT infrastructure to a trusted provider in order to see enterprise IT play a dominant role in the future strategic direction on organisations operating around the world.

About the Research
To learn more about the research methodology and download a copy of the full report, please visit: http://www.savvis.co.uk/en-gb/solutions/it-outsourcing/pages/2012-global-it-leadership-report.aspx

All further enquiries should be directed to [email protected] or +44 (0)20 7025 8200

Follow @SavvisEMEA on Twitter for the latest company news, blogs and industry opinions.

Read the original blog entry...

More Stories By RealWire News Distribution

RealWire is a global news release distribution service specialising in the online media. The RealWire approach focuses on delivering relevant content to the receivers of our client's news releases. As we know that it is only through delivering relevance, that influence can ever be achieved.

@CloudExpo Stories
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
ScriptRock makes GuardRail, a DevOps-ready platform for configuration monitoring. Realizing we were spending way too much time digging up, cataloguing, and tracking machine configurations, we began writing our own scripts and tools to handle what is normally an enormous chore. Then we took the concept a step further, giving it a beautiful interface and making it simple enough for our bosses to understand. We named it GuardRail after its function - to allow businesses to move fast and stay sa...
SYS-CON Media announced today that Sematext launched a popular blog feed on DevOps Journal with over 6,000 story reads over the weekend. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Sematext is a globally distributed organization that builds innovative Cloud and On Premises solutions for performance monitoring, alerting an...
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally. DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.