Cloud now worth 10% of external IT services spend

Gartner has warned that IT resellers which do not invest in delivering technology via a cloud mechanism will become increasingly marginalised as customer demand continues to soar. The latest research from the market watcher indicates that cloud computing services consumed from external service prov

Gartner has warned that IT resellers which do not invest in delivering technology via a cloud mechanism will become increasingly marginalised as customer demand continues to soar.

The latest research from the market watcher indicates that cloud computing services consumed from external service providers are estimated to account globally for 10.2% of spending on external IT services.

Analysts found that 39% of nearly 1,600 respondents in 40 countries were now allocating IT budget to cloud as a priority, with 46% adding that they planned to increase the use of cloud services from external providers next year.

"Demand is shifting from traditional proprietary and highly customised assets to ubiquitous assets that are accessed by customers," said Gartner research driector Bob Igou

According to Gartner, this indicates a shift towards a utility-based approach to non-core services and increased investment in core functionality.

The scales are also tipping in favour of private cloud implementations, with 43% upping their spend on clouds for internal or restricted use, compared to 32% who were spending on external or public clouds.

"This indicates a shift in spending from traditional assets such as the data centre [and is] good news for IT services providers that have professional services geared to implementing cloud environments," said Igou.

"It is bad news for technology providers and IT services firms that are not investing and gearing up to deliver these new services seeing an increased demand by buyers," he added.

The survey also revealed that an average of between 40% and 50% of cloud budgets is currently being spent on external services in EMEA.

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