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Cloud and hosting services spending to outpace total IT spend this year

(Image credit: Image Credit: Everything Possible / Shutterstock)

Enterprises expect to spend so much more on hosting and cloud services, that the spending will outpace growth in overall IT spending by 25.8 per cent. According to a new report, cloud and hosting services spending will reach 12 per cent. 

These are the conclusions of 451 Research’s new report, entitled Voice of the Enterprise: Hosting and Cloud Managed Services, Budgets and Outlook. 

This trend, as the report states, applies to pretty much every vertical, and is noticed in companies of all sizes. It is, however, most pronounced in large businesses, which expect an average of 33.3 per cent growth. 

Almost nine in ten (88 per cent) expect their hosting and cloud services budgets to increase YoY, compared to 70 per cent for total IT budgets. 

Some companies (9.5 per cent) expect a decrease in budget, too.

“We see the pace of investment in hosting and cloud services exceeding investment in IT overall, meaning hosting and cloud services are becoming a focus of IT investment, via both new projects and the migration of existing workloads,” says Liam Eagle, Research Manager at 451 Research and author of the Voice of the Enterprise: Hosting and Cloud Managed Services study. “Even some businesses that are reducing IT spending overall are increasing hosting and cloud spending, meaning service providers should not overlook companies looking to reduce IT costs as prospects.”

451 Research’s new report focuses on enterprise end-users adopting hosing and cloud services. That includes, but is not limited to SaaS and infrastructure services, managed services and security. The report, which can be found on this link, is based on 1,000 IT professionals worldwide.

Image Credit: Everything Possible / Shutterstock

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.