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
Flash Poll
Current Issue
Cartoon
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2013-6117
Published: 2014-07-11
Dahua DVR 2.608.0000.0 and 2.608.GV00.0 allows remote attackers to bypass authentication and obtain sensitive information including user credentials, change user passwords, clear log files, and perform other actions via a request to TCP port 37777.

CVE-2014-0174
Published: 2014-07-11
Cumin (aka MRG Management Console), as used in Red Hat Enterprise MRG 2.5, does not include the HTTPOnly flag in a Set-Cookie header for the session cookie, which makes it easier for remote attackers to obtain potentially sensitive information via script access to this cookie.

CVE-2014-3485
Published: 2014-07-11
The REST API in the ovirt-engine in oVirt, as used in Red Hat Enterprise Virtualization (rhevm) 3.4, allows remote authenticated users to read arbitrary files and have other unspecified impact via unknown vectors, related to an XML External Entity (XXE) issue.

CVE-2014-3499
Published: 2014-07-11
Docker 1.0.0 uses world-readable and world-writable permissions on the management socket, which allows local users to gain privileges via unspecified vectors.

CVE-2014-3503
Published: 2014-07-11
Apache Syncope 1.1.x before 1.1.8 uses weak random values to generate passwords, which makes it easier for remote attackers to guess the password via a brute force attack.

Best of the Web
Dark Reading Radio
Archived Dark Reading Radio
Marilyn Cohodas and her guests look at the evolving nature of the relationship between CIO and CSO.