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Cloud computing and its friends shaping 2015 IT budgets

2/18/2015 2:39:03 PM

IT solutions are big business. Technologies such as cloud computing and other key trends are expected to drive budgets in 2015, according to CIO Magazine's newest Tech Poll: Tech Priorities survey. Of the IT-level executives included in the study, 57 percent anticipate increasing their firms' expenditures this year. This marks the highest percentage of respondents expecting such growth in six years.

The average IT budget increase is 6.2 percent, up from 3.9 percent in the November 2012 study. Nearly two-thirds of enterprises included in the analysis plan to spend more this year, while 48 percent of small and medium-sized businesses expect the same.

"Companies plan to up spending on cloud computing and other solutions in 2015."

Cloud computing is dominating IT expenditures in 2015. The study discovered 55 percent of participants plan to spend on cloud and Software-as-a-Service applications this year. The same percentage - 52 percent - of executives anticipate allocating resources toward business continuity and disaster recovery, mobile applications, security apps and enterprise mobility management. Another 48 percent will do the same with business intelligence and analytics.

Adam Dennison, senior vice president and publisher of CIO Magazine, indicated the study shows how specific IT developments are impacting the industry, as well as how businesses are budgeting and adopting these technologies.

"Enterprises are continuing strong investments in edge technologies in order to revolutionize their business and provide cutting edge products and services to customers, ultimately creating additional revenue channels. Aligning priorities and investments around business intelligence and analytics is a smart way to drive new innovation," Dennison explained.

IT budgets in 2015 will approach $4 trillion. IT budgets in 2015 will approach $4 trillion.

Annual IT spending nearing in on $4 trillion
A Gartner report suggested global IT spending will total $3.8 trillion in 2015, up 2.4 percent from last year, yet lower than the firm's initial growth projections of 3.9 percent. The organization cited a rising U.S. dollar as a key reason behind the updated forecast.

Still, nearly $4 trillion in spending is nothing to scoff at. John-David Lovelock, research vice president at Gartner, said the reduced IT projection is actually not as worrisome as it seems.

"The rising U.S. dollar is chiefly responsible for the change - in constant currency terms the downward revision is only 0.1 percent," Lovelock said. "Stripping out the impact of exchange rate movements, the corresponding constant-currency growth figure is 3.7 percent, which compares with 3.8 percent in the previous quarter's forecast."

Gartner indicated all IT sectors - services, enterprise software, data centers, devices and telecommunications - will expand this year compared to 2014. Cloud computing is expected to influence data centers in particular, with organizations extending replacement life cycles and adopting cloud suites faster than previously thought.

Make the most of your IT investments
Whether companies are interested in replacing older equipment with cloud environments or looking to adopt other critical technologies, Apptix can be a big help for customers. Apptix is an application management software vendor that assists clients with their IT infrastructures, ensuring all systems are adopted efficiently and, importantly, securely.

With so much money being devoted to IT, organizations should want to maximize their investments from day one. Learn more about Apptix's offerings today.


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