Risk
4/2/2010
09:52 PM
Connect Directly
Twitter
RSS
E-Mail
50%
50%

IT Spending On Cloud Ratcheting Up

A Sandhill Group survey shows enterprise interest in -- and IT spending on -- cloud computing accelerating over the next three years.

Market research for the venture capital firm, the Sand Hill Group, has concluded that cloud computing represents one of the largest new investment opportunities on the horizon.

In a 90-page report, M.R. Rangaswami and Kamesh Pemmaraju cite a CIO who said that spending on cloud computing will reach 40% of his IT budget in the next three years and 70% in five years.

In an interview, Rangaswami said the comment came from "the CIO of a major software company that we interviewed, not prone to making exaggerated comments." He defended it as in line with other less dramatic but assertive comments from the survey. Rangaswami conceded that IT spending today "is not a whole lot. Sixty-eight percent of respondents said 0%-3%."

But the survey also shows that in three years, 16% expect to spend 30% or more of the budget on cloud computing; 8% will spend 21-30% of the IT budget; 22% will spend 11-20% of the budget; and 24% will spend 7-10% of the budget. Those expecting to spend 7% or more make up 80% of the sample, he said.

Based on those figures, Rangaswami projected that large enterprises with 10,000 to 15,000 applications are considering moving 2,000-3,000 applications to the cloud over the next three years or obtaining them there as software as a service.

Rangaswami aired the report's conclusion at last month's Cloud Connect Conference and asked IBM's VP of Cloud Services Ric Telford what he thought: "I have no problem with those numbers (40% in three years; 70% in five) as long as you include the caveat, it could be any one of five delivery models."

Software-as-a-service, infrastructure-as-a-service, and platform-as-a-service are three delivery models often used in talking about cloud computing. Telford didn't specify two additional ones, although analysts also refer to "public" and "private" cloud forms.

Telford went on to say, "In five years, I would say we won't even be using the term 'cloud.' It will just be the norm. It will be the way we do IT."

In the interview Rangaswami said the Sand Hill Group commissioned two Web-based surveys with 511 respondents, followed by 40 interviews to reach its findings. Twenty-two of the interviews were with systems architects, VPs of IT or CIOs at small, mid-sized and large companies. The quantitative Web surveys were conducted by McKinsey & Co. and TechWeb, a UBM company which publishes InformationWeek.

Previous
1 of 2
Next
Comment  | 
Print  | 
More Insights
Register for Dark Reading Newsletters
White Papers
Cartoon
Current Issue
Flash Poll
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2014-0999
Published: 2015-06-02
Sendio before 7.2.4 includes the session identifier in URLs in emails, which allows remote attackers to obtain sensitive information and hijack sessions by reading the jsessionid parameter in the Referrer HTTP header.

CVE-2014-8391
Published: 2015-06-02
The Web interface in Sendio before 7.2.4 does not properly handle sessions, which allows remote authenticated users to obtain sensitive information from other users' sessions via a large number of request.

CVE-2015-0759
Published: 2015-06-02
Cross-site request forgery (CSRF) vulnerability in Cisco Headend Digital Broadband Delivery System allows remote attackers to hijack the authentication of arbitrary users.

CVE-2015-0850
Published: 2015-06-02
The Git plugin for FusionForge before 6.0rc4 allows remote attackers to execute arbitrary code via an unspecified parameter when creating a secondary Git repository.

CVE-2015-1945
Published: 2015-06-02
Unspecified vulnerability in the Reference Data Management component in IBM InfoSphere Master Data Management 10.1, 11.0, 11.3 before FP3, and 11.4 allows remote authenticated users to gain privileges via unknown vectors.

Dark Reading Radio
Archived Dark Reading Radio
From Target to Sony to Anthem, they are happening all around you: the “big” data breaches that compromise critical data and threaten the welfare of the corporate brand. Is your organization ready to respond?