Hybrid Cloud Sparks Increased Reduction in IT Spend
Fri, 05/25/2012 - 13:02 — Steve Pailthorpe
The need for businesses to reduce spending on IT infrastructure together with the advancement of Cloud Computing technology has caused industry analysts Gartner to revisit their estimation that a fifth of all businesses would own zero IT assets by 2012.
The reality is that IT Managers have been forced to leverage their existing servers and hardware as budgets and capital expenditure on technology has been increasingly restricted due to the deepening recession. The result has been that VMware, the world’s largest virtualisation specialist, is now working with companies like Commensus to help bridge the gap between a customer’s on-premise servers and virtual servers hosted in the Cloud. This new approach is known as Hybrid Cloud Computing. Studies by McKinsey have indicated that this approach to technology produces the biggest reduction in IT spend out of all of the different types of Cloud Computing approaches.
Gartner’s change in forecast indicates a significant market shift and provides an opportunity for IT solution providers to build a new business model. Utilising Cloud Computing to facilitate client’s migration from legacy systems into the Cloud whilst leveraging existing hardware to gain agility and increased performance, will undoubtedly become the norm going into 2013. As companies look to take advantage of the benefits that Cloud Computing promises whilst leveraging the investments already made on server infrastructure and human resources, the Hybrid Cloud is set to increase corporate performance and business agility.
According to Gartner, the mass migration away from physical IT assets is being driven by a number of factors, particularly the continuing evolution of virtualisation technologies. “The need for computing hardware, either in a data centre or on an employee’s desk, will not go away. However, if the ownership of hardware shifts to third parties, there will be a major shift with every facet of the IT industry.” says Gartner in their latest report.
Gartner has also predicted that, “Enterprise IT budgets will either be shrunk or reallocated to more strategic projects; enterprise IT staff will either be reduced or re-skilled to meet new requirements, and hardware distribution will have to change radically to meet the requirements of new IT hardware buying points."
Gartner’s latest prediction of a 20 percent exodus from hardware and other IT assets by 2013 is in line with their overall forecast for the Cloud Computing market. They believe that the Cloud Computing market will grow at an annual rate of 28 percent, eventually taking the market to $150 billion by 2013/2014.