Enterprises Boosting Cloud Spending

Enterprises are increasing their spending on cloud services, analysts at Forrester say. As you would guess, that is going to decrease the amount of spending by enterprises on their own hardware and software.

Since 2013, the percentage of enterprises that have deployed cloud has risen from 10 percent to 33 percent, and 49 percent of enterprises with more than 100 employees now use public cloud, according to Forrester Research.

Analysts at 451 Research predict enterprise information technology staffs will spend an average of 34 percent of their overall budgets on hosting and cloud services in 2017, up from 28 percent last year, with increased reliance on infrastructure, applications management and security.

IDC, meanwhile, predicts that 23 percent of IT infrastructure and application workloads will reside in the public cloud in two years, up from today's 14 percent.

Hybrid cloud management, application development, the internet of things, and a myriad of software innovations are ways existing suppliers will have to work to remain relevant, Forrester says.

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