July 9, 2012
Migration to cloud computing services is a major factor in continued growth of total IT spending, according to Gartner research. Although the overall growth rate has slowed, total spending on IT is expected to total more than $3.6 billion worldwide in 2012.
Spending grew nearly 8 percent from 2010 to 2011 before falling down to a 3 percent growth rate this year. Buoyed by software and service spending, the growth rate looks to rise to 4.4 percent in 2013. Gartner's projection of 2012 spending saw an even more conservative estimate at the end of the first quarter, sitting at 2.5 percent.
Spending on public cloud services in particular is in the midst of an anticipated $16 billion increase from last year, up from $91 billion to $109 billion. By 2016, the public cloud market will be valued at $207 billion, according to Gartner.
"Business process-as-a-Service (BPaaS) still accounts for the vast majority of cloud spending by enterprises, but other areas such as Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS) are growing faster," Gartner research vice president Richard Gordon said.
Next level security
With the state of cloud computing data security still somewhat in flux, security and privacy is the top challenge associated with business IT innovation moving forward, according to the report from auditing firm KPMG. Although business spending will be dependent on improvements in overall network and web security, consumer adoption will be reliant on cost and pricing models.
KPMG technology partner Gary Matuszack points out that concerns about data protection and security in technology are common with technological changes.
"The fact that security/privacy governance is a challenge is not news, yet it's an ongoing reminder of it's importance as the business models continue to evolve," Matuszak said. "The companies that develop a way to balance data-driven innovation with appropriate transparency, privacy and information security frameworks to satisfy customers and regulators will have a competitive edge."
The report states that mobile technology, alongside the cloud, will likely spur the next wave of innovation for both consumer and business technology.
Technological growth in China is expected to help drive the IT spending market, not just for cloud computing, but for future technological innovations, according to the KPMG report. Among those who see a shift in the center of the technology world out of Silicon Valley, most believed it would then move to China.
The Chinese in general were more confident in their own ability to innovate than American business executives were about the United States' prospects. Thirty-nine percent of U.S. respondents claimed the United States was the most promising location for innovation, while 71 percent of those surveyed in China selected China.
-McAfee Cloud Security