Cloud replaces people as IT budgets rise

Survey - 91 percent of global companies use cloud

6 November 2014 by Bill Boyle - DatacenterDynamics

Cloud replaces people as IT budgets rise
The cloud is raining on job opportunities in 2015

While IT teams are confidently expecting their budgets to grow by a five-year high of 3.3 percent in 2015 the explosive growth of cloud services is pushing people out the doors.

As UK corporates look to the future they are spending more on innovation and chasing new business, while moving quickly away from old-fashioned maintenance and patching to a cheaper life in the cloud, according to a survey by advisory group CEB.

Of the survey respondents, 91 percent used a cloud solution in 2014. According to CEB, more than a third of companies are now allocating at least 6 percent of spending to cloud solutions (up from a quarter in 2013).

However the expected growth in IT staffing levels is only 0.8 percent in 2015 as cloud outsourcing replaces in house IT staff. This appears to demonstrate that cloud is not, as many organizations have claimed, allowing them to deploy IT staff on to other projects – with more IT to manage, staff are in effect being replaced.

These are the conclusions of a survey taken by advisory body CEB of 200 global organisations representing IT spend of £46bn.

Andrew Horne, managing director at CEB, said: “In our experience many companies expand their IT spending through the year as new opportunities emerge, meaning we could be looking at a budget growth of well over 5 percent. We’re seeing a group of companies aggressively managing down their maintenance budgets so they can invest more in areas such as digital channels and analytics. Companies that are unable to make this budget shift and adapt to shorter, more unstable planning horizons risk being left at a competitive disadvantage.”

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