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Quarter of company IT spend goes into the cloud

Excalibur Communications

According to a study by IDC, 25% of all IT infrastructure spending within Europe is being spent on cloud solutions. We knew growth was high from our own experience but we had no idea it was that much!

IDC, International Data Corporation, a market intelligence firm, has been looking at spending within IT. Not only have they found that a quarter of all IT infrastructure spending is going to the cloud, but they also found the sector grew by 17.6% in the EMEA region in the first quarter of 2016.
The main growth sectors are in storage and servers, two elements that are traditionally costly to business. With the requirement to save all data for future use, whether for data mining or compliance, the need for reliable storage is ever expanding. Storage has seen 12% growth while servers 16.6% in Q1 2016. A figure only likely to increase as the year progresses.

IDC classes infrastructure spend as cash used for servers, storage and network hardware. It classes the cloud as services provided remotely by a vendor. That’s the same definition we use ourselves. So if these findings are accurate, it seems more and more businesses are waking up to the potential of cloud solutions.

Further to that headline figure, IDCs research also shows spending on traditional infrastructure projects is falling ever so slightly. While the majority of the average IT budget is still spent in-house, it isn’t necessarily on big ticket items such as servers and network hardware.
Hybrid balance

So it seems organisations are finding a balance between acquiring cloud services for some aspects of their needs and maintaining in-house services for others. We know from our own experience that hybrid cloud projects, those that mix pure cloud services with onsite elements, are gaining traction as companies seek to balance value and flexibility.

If an organisation already has an IT department and the talent pool to manage their own infrastructure it makes sense to make the most of that. Newer, more streamlined services can be added in a cloud layer to complement those solutions managed in-house. It’s a system that is working well in hundreds of companies across Britain and will likely continue doing so for the foreseeable future.

With the continuing evolution of cloud services, steady improvements in quality, flexibility and cost, there is every reason to embrace it. With the availability of skills and budgets likely to be limited for the foreseeable future, cloud solutions are ready to fill the gap. Add the inherent fairness of the per-seat model and you have an IT solution that provides value at every scale.

If you would like to explore the potential of cloud solutions for your business, contact Excalibur today. With hundreds of successful cloud migration projects under our belts, we are perfectly placed to help!

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