In recent studies Gartner identified two trends which on the surface might seem at odds:
Gartner: IT spending in 2009 will be worse than 2001's decline
Business spending on cloud computing rises to $9.6 billion in 2009, up 22%
While overall spending is declining, as IT managers adjust their budgets in light of the current recession, cloud computing continues to grow. Why? I think there are several key drivers behind this trend. The first is the convergence of a maturing technology with a correlating market need. Cloud computing offers significant cost savings at a time when IT managers are looking to reduce costs. With major players like VMware continually improving their VMware Cloud (vCloud) with increased functionality, responsiveness and reliability makes the transition to infrastructure as a service a natural choice.
The second factor is the dramatic increase of companies developing Software-as-a-Service products which require SaaS hosting solutions. While Salesforce.com led the way, we are seeing many other companies moving to the cloud. For example, 5Buckets by Right On Interactive which integrates marketing applications and systems clients already have in place such as ExactTarget and Salesforce.com and WebLink connect a membership management software program (link to client sites or case studies) have chosen the BlueLock Cloud for their infrastructure so they are free to focus their time and resources on product development, not infrastructure management.
And even as the economy continues to recover I believe smart IT managers, having seen the benefits of cloud computing, will continue to make this transition to fuel their growth and manager their costs.
Gartner: IT spending in 2009 will be worse than 2001's decline
Business spending on cloud computing rises to $9.6 billion in 2009, up 22%
While overall spending is declining, as IT managers adjust their budgets in light of the current recession, cloud computing continues to grow. Why? I think there are several key drivers behind this trend. The first is the convergence of a maturing technology with a correlating market need. Cloud computing offers significant cost savings at a time when IT managers are looking to reduce costs. With major players like VMware continually improving their VMware Cloud (vCloud) with increased functionality, responsiveness and reliability makes the transition to infrastructure as a service a natural choice.
The second factor is the dramatic increase of companies developing Software-as-a-Service products which require SaaS hosting solutions. While Salesforce.com led the way, we are seeing many other companies moving to the cloud. For example, 5Buckets by Right On Interactive which integrates marketing applications and systems clients already have in place such as ExactTarget and Salesforce.com and WebLink connect a membership management software program (link to client sites or case studies) have chosen the BlueLock Cloud for their infrastructure so they are free to focus their time and resources on product development, not infrastructure management.
And even as the economy continues to recover I believe smart IT managers, having seen the benefits of cloud computing, will continue to make this transition to fuel their growth and manager their costs.
Comments for Cloud Computing Spending on the Rise