Businesses are relying more and more on cloud computing, and spending on it at the same rate. A new study finds one-third of enterprise budgets are now allocated to cloud computing solutions, including private clouds and storage.
Businesses are moving email, collaboration, data storage, and human resource applications to cloud environments, while security, financials, and supply chain management data is being hosted on secure, private clouds.
The IDG Enterprise Cloud Computing Study also reports that two-thirds of the 1,650 companies surveyed will increase their cloud spending over the next 12 months. The average increase in cloud budgets was 16 percent. The rate of increase is expected to soon increase cloud computing’s share to nearly half of all business IT budgets.
Amazon.com (NASDAQ:AMZN) has one of the largest corporate cloud businesses, and IBM (NYSE:IBM) and Hewlett-Packard(NYSE:HPQ) are big competitors. However, a separate survey found smaller providers can do more to improve their products and services. A Cloud & Technology Transformation Alliance report found only 5 percent of cloud solution providers said they have a mature cloud practice. Another 69 percent characterized their services as “developing” or “implemented and evolving.” Almost 13 percent said they have no cloud strategy or products.