According to data found by Gartner, spending on cloud and hybrid technology will increase in 2015, likely to about $3.8 trillion, increasing cloud’s place in the IT budget for the following year. Already, between 2013 and 2014, revenue from cloud technology has more than doubled. Organizations are being critical with their spending and how they are utilizing their budgets. Companies, now, are focusing on delivering a top-notch customer experience. They are seeking how to increase profitability, as opposed to focusing on cost efficiencies.
With the focus on profitability and strategically using the company budget, IT services, including cloud, are no longer seen merely as a way to create cost-efficiency gains. IT departments have been working with other business units to understand company needs in order to drive strategy to push the company forward. IT can be seen as a service broker, where they identify and direct IT budget resources, both internally and from vendors, to address potential issues or opportunities.
There has also been a move towards a bimodal IT model. In mode one, companies are trying to renovate the current core of their IT system. In mode two, companies are seeking to explore new things. By combining the two perspectives, the goal is to grow companies, from the IT point of view, with new products, solutions, opportunities and, hopefully, customers. With this bimodal approach, companies and their IT departments have to focus on boldness rather than being fearful, with the objective of business transformation. These innovative, technological solutions are the key to driving optimal business transformation. IT leaders are now more able than before to work across business units to focus on exceeding demands to push development boundaries.
In terms of budgeting, companies are already spending over 20 percent of their IT budget on cloud technologies. Some of their cloud budget, however, will come from outside the central IT budget. There is a strong chance that the rise in spending could continue annually in the general IT budget, as the desire for cloud technology continues to spread across departments. Cloud is in a unique location to strongly impact all parts of a business, not just in the IT department. This will strengthen ties between various departments to IT and among each other. For these reasons, cloud will continue to be an IT priority for the near and distant future.