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-2011-4403
Published: 2015-04-24
Multiple cross-site request forgery (CSRF) vulnerabilities in Zen Cart 1.3.9h allow remote attackers to hijack the authentication of administrators for requests that (1) delete a product via a delete_product_confirm action to product.php or (2) disable a product via a setflag action to categories.ph...

CVE-2012-2930
Published: 2015-04-24
Multiple cross-site request forgery (CSRF) vulnerabilities in TinyWebGallery (TWG) before 1.8.8 allow remote attackers to hijack the authentication of administrators for requests that (1) add a user via an adduser action to admin/index.php or (2) conduct static PHP code injection attacks in .htusers...

CVE-2012-2932
Published: 2015-04-24
Multiple cross-site scripting (XSS) vulnerabilities in TinyWebGallery (TWG) before 1.8.8 allow remote attackers to inject arbitrary web script or HTML via the (1) selitems[] parameter in a copy, (2) chmod, or (3) arch action to admin/index.php or (4) searchitem parameter in a search action to admin/...

CVE-2012-5451
Published: 2015-04-24
Multiple stack-based buffer overflows in HttpUtils.dll in TVMOBiLi before 2.1.0.3974 allow remote attackers to cause a denial of service (tvMobiliService service crash) via a long string in a (1) GET or (2) HEAD request to TCP port 30888.

CVE-2015-0297
Published: 2015-04-24
Red Hat JBoss Operations Network 3.3.1 does not properly restrict access to certain APIs, which allows remote attackers to execute arbitrary Java methos via the (1) ServerInvokerServlet or (2) SchedulerService or (3) cause a denial of service (disk consumption) via the ContentManager.

Dark Reading Radio
Archived Dark Reading Radio
Join security and risk expert John Pironti and Dark Reading Editor-in-Chief Tim Wilson for a live online discussion of the sea-changing shift in security strategy and the many ways it is affecting IT and business.