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Cannibal cloud: How spending on the cloud is eating into IT budgets

ZDNet - One of the biggest questions of the moment for the IT industry is what the shift to the cloud will mean for how IT budgets are spent.

The early indications are that when it comes to spending on IT services, while some areas will see budgets dwindle, cloud will lead to an increased expenditure on new types of IT services, research from analyst house Gartner has found.

According to Bryan Britz, research director at Gartner, the reality of how the cloud is affecting IT spending is complex, and while spending on cloud is cannibalising some revenues it is also creating new requirements for IT services.

For example, while an organisation may move some workloads to the public cloud – thereby spending less on datacentre outsourcing — this can often lead to a bigger rethink of their hosting strategies, which will often mean more IT services spending: "In a lot of cases it actually kicks off new growth," Britz told ZDNet.