Gartner Survey Shows Cloud Services Represents 10% Of Spending On External IT Services In 2010

Cloud-computing services consumed from external service providers (ESPs) are estimated to be 10.2 percent of the spending on external IT services, according to a worldwide survey by Gartner.

A press release issued by Gartner states: “From April through July 2010, Gartner surveyed 1,587 respondents in 40 countries to understand general IT spending trends and spending on key initiatives such as cloud computing. Participants were IT budget management professionals (CIOs, IT VPs, IT directors, IT managers, etc.).

Four hundred eighty-four respondents participated in the drill-down on cloud computing and were asked how their organization’s current budget for cloud computing was distributed, as well as what their estimate was for spending next year.”

“The cloud market is evolving rapidly, with 39 percent of survey respondents worldwide indicating they allocated IT budget to cloud computing as a key initiative for their organization,” said Bob Igou, research director at Gartner. “One-third of the spending on cloud computing is a continuation from the previous budget year, a further third is incremental spending that is new to the budget, and 14 percent is spending that was diverted from a different budget category in the previous year.”

Forty-six percent of respondents with budget allocated to cloud computing indicated they planned to increase the use of cloud services from external providers. Gartner analysts said there is a shift toward the “utility” approach for noncore services, and increased investment in core functionality, often closely aligned with competitive differentiation.

More respondents expected an increase in spending for private cloud implementations that are for internal or restricted use of the enterprise (43 percent) than those that are for external and/or public use (32 percent).

Additional information is available in the report “Cloud-Computing Budgets Are Growing and Shifting; Traditional IT Services Providers Must Prepare or Perish,” which is available on Gartner’s website.

Kevin Tea is a journalist and marketing communications professional who has worked for some of the leading blue chip companies in the UK and Europe. In the 1990s he became interested in how emerging Internet-based technologies could change the way that people worked and became an administrator on the Telework Europa Forum on CompuServe. With other colleagues he took part in a four year European Commission sponsored project to look at the way that the Internet could benefit remote communities. His blog is a resource for SMEs who want to use cloud computing and Web 2.0 technologies.