Almost 28% of total IT budgets go for hosting, cloud services

Agencies now spend 28% of their total IT budgets on hosting and cloud services, in accordance to 451 Research’s Voice of the Enterprise: Hosting and Cloud Managed Services study.

Next year, that figure is hoped to increase to 34%, demonstrating an increasing reliance on external sources of infrastructure, application, management and security services, the report pointed out.

However hosting and cloud providers frequently position themselves as primarily providers of infrastructure, 451 Research discovered that merely 31% of spending goes toward infrastructure services while almost 70% of enterprise budgets for hosting and cloud is being spent on other services. These involve managed services (14%), application services (42%), security services (9%); and professional services for cloud enablement (5%).

The research indicates that an important portion of hosting and cloud services spending is on unmanaged or self-managed infrastructure or application services.