Cloud computing has been getting increasingly popular as companies get to discover its immense potential. According to a recent study, the trend of cloud computing has gained so much traction that IT companies are spending a whooping 34% of their budget on average on it! This means that a major slice of organizational spending goes to cloud services.
The most common trend among the organizations it to have a private cloud set up rather than utilize the services of some other cloud. These private clouds are set up within the facilities of an organization so as to ensure their security.
Interestingly, the companies which were analyzed and questioned during the study reveal that in the coming days, spending on cloud computing will increase even more. It is expected that there will be an increase of 16% in organizational spending in this particular domain. A number of companies also have plans of moving a number of their applications to the cloud such as conferencing, data storage, email and messaging, human resources and customer relationship management.
So why is cloud so important to companies all of a sudden? Do they think it is more cost-effective or what? Well, nearly 25% of the respondents in the study were of the opinion that in the coming days, cloud services will play a very significant role in shaping the overall business strategy of an organization.
Moreover, these extensive spending on cloud computing are done in the hope of a better, more prosperous future. Some 63% of the organizations asked in the study agreed that they hope investing in cloud computing right now will help in long term cost savings.