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Friday, April 18th, 2014

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Cloud computing and automation to drive IT spending in 2010

As we taper toward the end of the economic recession, the worst might be over for many Asia-Pacific businesses. But CIOs will face a unique challenge. IT department heads across industries are currently tasked with planning for a period that requires maintaining service levels set in 2009 following drastic budget cuts while preparing for a recovery that could put increased pressure on these environments.

Labeled the “worst ever” year by Gartner, 2009 saw a drop in overall global technology expenditure. However, a 3.3% increase in tech spending is on the cards next year. How CIOs managed the recently-concluded ‘recession’ will be key in determining how they steer the company to full recovery as Gartner predicts the promise of a better IT sector in 2010 does not necessary equate a bigger IT budget.

While resources are still inconsistent, IT organisations will need to apply the lessons learned in 2009 by leveraging new technologies – such as process automation, virtualization and cloud computing – and postponing hardware purchases. ‘Disruptive technologies’ such as virtualization and cloud computing are being leveraged by more and more businesses in Asia-Pacific even during the hardest of times because of their value propositions.

In 2009, much was discussed about private, public and hybrid clouds with few early adopters. 2010 will be the year of actual deployments.

The following trends sum up the anticipated slow but steady recovery of IT spending in 2010. It includes what IT managers expect; the mantra of “doing more with less” is quickly becoming less of a short solution and more of a long term reality. Also, new technologies integral to many IT departments’ rescue in 2009 will continue to play an important role next year.

1. IT spending to shift from capital to operational expenditures. IT automation, virtualization and the Cloud lead the way
IT automation will continue to be the preferred solution used by CIOs and entry-level IT employees alike because it both helps save money and perhaps more importantly, allows IT staffers the freedom to do the work that is most fulfilling and provides the greatest benefits. The technology also serves as the foundation for many high-priority IT initiatives such as virtualization and cloud computing, which offer many benefits such as improved resource utilization, lower costs and scalability.