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More Firms To Increase IT Investments
By Mike Sachoff
Staff Writer
Article Date: 2010-10-13
More than a third (39%) of organizations worldwide expect investments in IT budgets to increase in the next year, with slightly more in Asia Pacific expecting an increase of 44 percent, according to a new report from Gartner.
Among Asia Pacific respondents expecting an increase, 72 percent plan for increases of more than 10 percent and 36 percent expect more than 20 percent increase over the current year's budget.
"Following two years of tumultuous change and uncertainty, IT budgets will increase modestly in 2011; however, responses indicate that the ‘new normal' is as much about where the money is going as how much is available," said Derry Finkeldey, principal research analyst at Gartner.
"Asia Pacific was not as hard hit as other regions by the economic downturn and the region is resilient, currently experiencing a return to growth."
Enterprise software implementations and upgrades are receiving the greatest investment focus in Asia Pacific, with 85 percent of organizations allocating budget to implementations in the current budget year, with most planning to spend at the same or higher levels in 2011. On average, these organizations are investing around 23 percent of their IT budgets on initiatives in this area. Interestingly, all respondents in Asia Pacific are investing in data center consolidation or expansion initiatives in the current year.
Despite the hype, 63 percent of respondents in Asia Pacific have not budgeted for any type of cloud service in 2010. However, 34 percent have allocated IT budget to cloud computing as a key initiative for their organization and those that are investing in cloud are planning high growth in spending in 2011.
"While we are seeing growing interest in cloud computing, most organizations are still learning when it comes to cloud services initiatives," said Ms Finkeldey.
"But this doesn't mean they are not thinking about it - data center initiatives such as virtualization are currently higher on the priority list than cloud, but these initiatives are the necessary precursors to a move towards cloud computing. We are seeing that the money is now shifting from traditional IT budget categories to new types of spending."
About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.
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