Over 50 percent IT investment will still happen outside the cloud

Yogesh Gupta February 12, 2016
Over 50 percent IT investment will still happen outside the cloud

Cloud is disruptive but it does not mean that we have to run away from the traditional IT market, says Ned May, VP, Voice of the Enterprise, 451 Research, at NASSCOM 2016

Cloud has been a disruptor for the technology industry and the corporate world, but traditional IT still endures. Highlighting this during his presentation at NASSCOM 2016, Ned May, VP, Voice of the Enterprise at 451 Research, said, “Cloud is disruptive but it does not mean that we have to run away from the traditional IT market.”

May said that, though cloud has a deep impact, more than 50 percent of the IT investment will still happen outside the cloud area.

But the cloud is still a big disruptor with a capital C and the greatest growth is happening in private cloud. “In terms of IT investments, cloud and security are top areas of focus for IT executives.”

The work load applications in the cloud globally are expected to rise from the present figure of 39 percent to 57 percent in the next two years, he said.

But the advent of cloud does not mean that IT infrastructure like server, storage, networking or converged infrastructure systems will not be purchased by enterprises. May said that it will be a hybrid world of on-premise and cloud depending on applications, verticals, budgets, business needs and other factors.

May said that enterprises want to work with a trusted partner with committed delivery for their IT infrastructure for cloud. It’s not always about the price but the manner in which cloud services are packaged to benefit customers, he said.

 

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