Many companies say they will adopt cloud computing within two years

One-third of 1,200 organizations (33%) plan to convert their application environments away from a traditional, client-server model to one based on virtualization and cloud computing over the next two years, according to a study commissioned by Microsoft and released today. The study sought to broadly determine global IT spending priorities.

While the survey was far from comprehensive, it did uncover a few silver-lining facts. IT spending budgets will not be cut, with 98% saying they will generally maintain or increase their planned investment. Nearly 2/3 say the economy has created reason to invest more in one or more areas of technology. And of those, virtualization, security, systems management and cloud computing are the areas of choice. Specifically:

• 42% plan increased investment in virtualization.
• 36% plan increased investment in security.
• 24% plan increased investment in systems management.
• 16% plan increased investment in cloud computing.

Given today's economic climate, much of the study produced results on spending priorities that you might expect. Security remains the top challenge, with 73% saying protection of consumer and customer data as the top priority. Additionally:

• 55% indicate that the economy has changed the role of IT in their organization.
• 51% say that budget cuts are the biggest barrier to innovation.
• Innovation is taking a back seat to maintenance. In 2009 companies on average worldwide will allocate 37% of their budget to innovation and 63% toward “keeping the lights on.”

However, one of the more surprising areas was that U.S. companies were allocating less budget toward "innovation," and more toward maintenance than their international counterparts, said Microsoft's Bob Kelly, corporate vice president of infrastructure server marketing in an online press conference. In the U.S. the breakout was innovation 29% vs. maintenance 71%. This compares to the UK and Japan's 41% / 59% ratio and Germany's 35% / 65%.

Sign up for ITworld's Daily newsletter
Follow ITworld on Twitter @IT_world

• Email
• Print
• Share
  • Slashdot
  • Digg
  • Stumble
  • Reddit
  • Newsvine