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November 26, 2012

CIOs to Spend More Money on Cloud, Mobile and BI&A

Over the next 12 months, IT decision makers plan to spend most of their budgets on cloud computing, mobile technology and business intelligence and analytics (BI&A), according to a recent study of CIOs.

In fact, almost half (48 percent) of respondents said they believe that 2013 will bring a “surge” in IT spending, according to the most recent CIO Magazine Tech Poll/Tech Priorities survey. In addition, 39 percent reported that budgets will remain the same, and the additional 13 percent expect budget cuts for IT.

The most recent CIO survey shows that the overall business investment trend continues to shift away from core technologies toward edge technologies, including tablets, cloud, mobile, and BI&A.

Big data is going to have a big impact on IT spending across the globe – not only this year, but in 2013 and beyond, according to recent research from Gartner (News - Alert). In fact, big data is expected to drive $28 billion of worldwide IT spending in 2012, and next year, big data is forecast to drive $34 billion of IT spending, TMCnet reported.

But despite the hype surrounding big data, it’s not a standalone market.

The bulk of current IT spending is being allocated to the adaptation of traditional solutions to the demands big data poses, including machine data, social data, widely varied data and unpredictable velocity. In fact, just $4.3 billion in software sales will be driven directly by demands for new big data functionality in 2012, according to Mark Beyer, research vice president at Gartner.

“Despite the hype, big data is not a distinct, stand-alone market, it but represents an industry-wide market force which must be addressed in products, practices and solution delivery,” Beyer said in a statement.

In a separate survey from January 2012, 46 percent anticipated higher spending in the next year, 38 percent believed that it would neither increase nor decrease, and 16 percent of respondents reported a decline in spending for the coming year, according to Unified Communications (News - Alert) Strategies.

One of the driving forces behind increased spending, according to 35 percent of responding organizations, is business process innovation. For 22 percent of these organizations, the driver for heightened spending is split between two areas: increased efficiency for IT infrastructure management and generating top line revenue growth.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Brooke Neuman

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