Cloud computing to fuel slight IT spending increase

January 3, 2012

The global financial crises of 2008 limited IT spending, but after growth in 2011, most experts believe IT budgets will expand yet again this year.

According to a recent ComputerWorld report, IT spending experienced slight growth last year, and budgets will increase similarly in 2012.

"If you look at constant dollars - in other words, if you strip out exchange rates - we've seen marginal growth in 2011 in the very low single digits, maybe 1 percent or 2 percent globally," Richard Gordon, research vice president at Gartner, told the source. "From an enterprise IT perspective, folks are planning for a period of slow economic growth."

The report said cloud computing will remain a major area of IT spending growth this year, as more organizations decide to shift traditional IT functions to the cloud to reduce costs and improve flexibility. Companies are beginning to feel comfortable securing and storing data in the public cloud, one expert told the source.

Gartner recently predicted that more than half of Global 1000 companies will store private customer data in the public cloud by 2016, while the report said 20 percent of companies have already placed some information in a hybrid cloud.

-McAfee Cloud Security