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Cloud computing sparks corporate IT budget growth

SearchCloudComputing.com Staff

Cloud interest contributes to IT budget rise
For the first time in three years, corporate IT budgets are expected to grow. And what

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do we have to thank for this minor miracle? Why, cloud computing, of course!

According to a Corporate Executive Board survey that will drop later this month, IT budgets will be raised by an average of 3.3% next year. Interest in cloud adoption, in particular, will push services and consulting costs up to 20% of overall IT budgets, a rise of 4% from 2009. Accordingly, hardware spending will drop to 27% of budgets, but that's to be expected.

The survey, which polled 150 member companies, further suggests that Hewlett-Packard and IBM could be "poised to flourish" in this brave new world. The surprises never cease!

KT and Cloudscaling launch cloud in Korea
KT, one of Korea's largest telecommunication providers, has partnered with Cloudscaling to launch the country's first large-scale private cloud. KT will use cloud computing to provide more data-intensive services to devices like smartphones and tablet PCs. The company also plans to use it to deliver computing infrastructure internally.

The private cloud will allow KT to bypass systems based on manual management of virtual servers and go toward automated management. It is estimated that the first phase of the installation will consolidate 9,800 servers onto the new cloud infrastructure.


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