Cloud spending accounts for 10% of external services spending

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According to the latest research from Gartner 10.2% of external IT services spending is going on cloud computing.

The worldwide study suggests that suppliers need to have strong cloud strategies as businesses are increasingly moving away from traditional IT models. Rather than owning the assets and paying license fees they are seeing the value of cloud services, which include pay as you use pricing.

See the Gartner announcement in full here.


This fits neatly with Gartner's prediction that 30% of IT services will be industrialised by 2015.

The cloud must have risen above hype by now. Read on to see what I mean.

Forrester also recently commented on the upheaval to the IT services space that cloud computing will contribute to.

Sourcing consultancy TPI has even launched a dedicated cloud computing unit and the service providers are clearly getting ready for the growth in cloud services.

For example I recently visited a Capgemini datacentre that is geared up for an increase in demand for cloud services.

Wipro also has a bold cloud computing strategy which could be about to hit Europe.

Capgemini has an interesting cloud computing deal with Royal Mail. 

I wrote a blog back in June about which suppliers might be ready to satisfy cloud services demand.

2 Comments

Your post made really interesting reading, and in particular the comment on how the study suggests that “suppliers need to have strong cloud strategies as businesses are increasingly moving away from traditional IT models”. However, in amongst this rush towards the cloud, there are still a large number of businesses that are still not considering the key motives driving them towards cloud adoption.

The reality is some firms have jumped on the cloud band-wagon based on the hype around cost reduction without doing the right levels of due diligence.

Assessing the viability of a transition to the cloud, in whatever form it wants to look like on any given day, is all about cost vs. risk. Although the cloud is waking up to the fact that performance is now as critical as availability in the competitive world of business, providers are still some way off being able to guarantee performance SLAs.

Cloud concepts and their underpinning technologies, such as virtualisation, are evolving rapidly in order to be able to guarantee resources to specific components across shared infrastructures which is a large step in the right direction.

Organisations simply have to combine the requirements of both the business and the IT organisation in order to align the right services to the cloud.

Outsourcing is a solid means to get work done. We never out source overseas but at time work with contractors that we have years of experience working with.

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This page contains a single entry by Karl Flinders published on September 22, 2010 2:29 PM.

Is Deutsche Telekom going to acquire an IT services firm? was the previous entry in this blog.

If anyone with an ounce of intelligence thinks shared services in government work, why hasn't it been done? is the next entry in this blog.

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