IT budgets expanding as companies invest in cloud, other technologies

January 30, 2012

The majority of companies expect their IT budgets to increase during the next six months, driven by investments in networking, security, virtualization and cloud computing.

According to a survey by a provider of technology solutions, anticipated IT spending growth among enterprises has surged due to expected investments in hardware and software. The company's six-month growth calculation increased three percentage points to 71, its highest score since its creation in late 2007. The rise signifies strong economic optimism for businesses and IT departments' desire to implement new software and hardware.

"More IT decision-makers are feeling optimistic about the prospects of their IT budgets increasing, and they are anticipating significant IT investments in the next six months, especially on the hardware and software fronts," said IT expert Neal Campbell. "We believe that organizations will continue to look at technology investments as ways to boost efficiencies, increase productivity and gain new competitive advantages in 2012."

Of companies expecting to increase investments in IT solutions, 47 percent anticipate spending growth in cloud computing, while networking, security and virtualization were also among the top investment priorities, the report said. The professional services industry is most optimistic about IT spending, as those companies are slated to expand investments in software, hardware and IT solutions during the next six months. The retail and healthcare industries are also expected to significantly extend IT spending this year.

Many experts predict cloud computing will continue its rapid ascent as a popular IT solution. According to Alistair Croll, the conference chair for UBM TechWeb's upcoming Cloud Connect event, Platform-as-a-Service and public cloud adoption are among the top enterprise IT trends this year, and both should support further consumerization in IT. Industry leaders also expect Software-as-a-Service to expand this year.

-McAfee Cloud Security