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More Than One-Third of IT Budgets Now Spent on Cloud: Survey

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Companies are investing heavily in cloud computing, a new survey of 1,650 IT and business executives shows. On average, they report, more than a third, 34%, of their current IT budgets are now allocated to cloud computing solutions.

These are some of the findings of the IDG Enterprise Cloud Computing Study, conducted in January 2012. Most of these budgets are going to private clouds hosted within the walls of enterprises. Private cloud deployments are currently where the majority of information is stored in the cloud (24%), and the trend will continue to dominate 18 months from now (33%).

The fact that cloud now comprises more than one-third slice of IT budgets suggests the computing approach has gained serious traction within enterprises. And cloud isn't just being brought in to enhance applications or to save money. One-fourth of respondents from the business side, in fact, report they believe cloud will play a critical role in shaping business strategy.

Cloud may grab an even bigger slice of IT budgets in the next few years. Close to two-thirds of companies expect to increase cloud spending in the next 12 months. On average, organizations will increase cloud computing spending by 16%.

Seven out of ten add that their IT departments needed to expand their skills base to keep up with cloud trends.

Applications that companies will be moving to the cloud within the next three years include email/messaging; collaboration/conferencing; data storage; customer relationship management; and human resources. The strongest private cloud implementations will involve IT infrastructure management; security management;  financials; and supply chain management -- all planned by a majority of respondents.

Even though there are higher short-term costs for implementing cloud initiatives, the majority of organization (63%) agree or strongly agree that there will be long term cost savings. Concerns about security dominate, however, as the main barrier to cloud, cited by 70%. Concerns about access to information follow at a distant 40%.