Forrester: Cloud Computing Drives IT Spending

Marissa Tejada| Midsizeinsider

Cloud computing is on the list of top IT spending priorities for the next year. According to Forrester Research, software spending worldwide will continue to grow with a big focus on the cloud. These worldwide trends reflect the focus of midsize firms.

Popular Software

The research featured recently in the CloudTimes found that, in the past year, companies and governments spent more than $2 trillion on hardware, software and services. In the most popular segment, software firms allocated budgets for improving mobile apps, analytics, security and collaboration software. Software spending increased last year by more than $540 billion; it is expected to grow 3.3 percent this year and 6.2 percent in 2014, the largest projection for technology categories.

The annual survey on worldwide IT spending also pointed out that companies will slowly stop investing in legacy applications, including desktops and servers, and will push their resources toward the cloud, software-as-a-service (SaaS) solutions, big data and mobile apps instead. Additionally, impressive spending is predicted for the tablet market. Forrester predicts a 36-percent surge in tablet spending for a turnover of $21 billion this year, with Apple, Samsung and Microsoft leading the way.

Forrester also highlighted that the U.S. spends more on IT than the rest of the world. In the U.S., IT investment hit slightly more than $800 billion, and the research firm predicts this will increase to $875 billion by next year.

Midsize Approach

Forrester’s IT predictions also reflect the way midsize firms are approaching their IT spending. More companies are beginning to realize the benefits of the cloud. Since enterprise implemented cloud solutions several years ago, new solutions that are specifically geared for the needs of midsize companies are readily available in the market. IT professionals at growing firms are working with vendors to implement the right cloud solutions for increased productivity, efficiency and cost savings.

The tablet revolution in conjunction with the rise of mobility is also apparent at growing firms. IT professionals are now responsible for devising bring-your-own-device (BYOD) policies to keep corporate data safe. As mobile devices and better mobile apps and services continue to infiltrate the market, IT professionals will be busy making sure policies are updated to keep corporate data as safe as possible.

Strong Investments

Cloud, mobility and mobility tools are the priorities for IT professionals worldwide. As the basis for smarter computing, they are expected to be the main reason why companies will spend more on IT. When it comes to the needs of midsize firms, these technologies are helping to fuel growth and productivity, which is the main reason why Forrester’s predictions will be realized.

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