Enterprises can shift data center costs in the direction of cloud facilities and bandwidth. Presumably some other existing costs, including IT management, application support, app development, IT service desk and end user computing costs likewise could be reduced.
Monday, March 23, 2015
How Much Enterprise Spending Could be Shifted to Cloud Alternatives?
If a traditional enterprise data center represents about 23 percent of the whole information technology budget, and data communications represents about nine percent of total budget, you can see where the potential for spending shifts lies: substituting cloud computing for owned data center operations.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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