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Cloud Infrastructure Spending Exceeds On-Premise for the First Time

Admin Globaldots
16.11.2018
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By 2025, businesses will be spending 22% of their budget on cloud technologies

Businesses are spending more money on cloud infrastructure compared to legacy, on-premise environments for the first time, according to the Cloud Industry Forum.

The CIF’s study, conducted by Vanson Bourne revealed that firms are more open to multi-cloud environments, with three-quarters of firms adopting the use of more than one cloud service to power their digital transformation process.

UK businesses are spending 19% of their IT budgets on cloud infrastructure, compared to 18% of budgets spent on-premise. Within four years, the CIF thinks the amount of money spent on the cloud will increase to become 22% of budgets. The firm is predicting the gap will widen as more organisations realise the benefits of cloud vs. on-premise architecture.

Although take-up is growing, there’s still a way to go until more businesses can use the cloud to power their digital transformation journey, with the CIF highlighting skills shortages as a major barrier to both cloud and cloud-powered application adoption.

Read more: Cloud Pro

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