Cloud Computing Sparks Massive Reduction in IT Asset Spend
The need for businesses to reduce hardware spending, coupled with advances in cloud computing have caused industry analysts Gartner to declare that a fifth of all businesses will own absolutely no IT assets by 2012.
This forecast signals a significant market shift, providing an opportunity for solution providers to build new business models with cloud computing services, facilitating their client’s migration from their legacy systems into the cloud.
The mass migration of businesses away from physical IT assets is being driven by a number of factors according to Gartner, which issued its top IT predictions this week, particularly the continuing evolution of cloud enabled services and virtualisation technologies.
“The need for computing hardware, either in a data centre or on an employee’s desk, will not go away,” Gartner said in its statement. “However, if the ownership of hardware shifts to third parties, then there will be major shifts throughout every facet of the IT hardware industry.
For example, enterprise IT budgets will either be shrunk or reallocated to more-strategic projects; enterprise IT staff will either be reduced or re -skilled to meet new requirements, and/or hardware distribution will have to change radically to meet the requirements of the new IT hardware buying points."
Gartner’s latest prediction of a 20 percent exodus away from hardware and other IT assets by 2012, is in line with their overall forecast for the cloud computing market. The company recently predicted that, the cloud computing market will grow at an annual rate 28 percent, eventually taking the market to $150 billion by 2013.
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