Cloud, mobile play a big role in IT spending

The business world today is much more technologically advanced than it was in the past, providing current decision-makers with a variety of opportunities to improve operations and reduce costs. Because of the highly diverse IT landscape, executives can choose from a wide range of strategies to differentiate themselves from competitors without jeopardizing return on investment. Among the most popular technologies, however, mobility and cloud computing continue to be prioritized.

A new report by IDC highlighted how global IT spending increased 5.9 percent in 2012, with hardware and software investments reaching $2 trillion. When innovative telecommunications solutions are introduced to the equation, the worldwide figure approached $3.6 trillion.

Analysts said the proliferation of mobility and cloud infrastructure services in 2012 encouraged decision-makers to invest in the rapidly expanding IT market, which would give their companies a potential competitive advantage.

"Cannibalization is happening across the industry," said Stephen Minton, vice president of global technology and industry research at IDC. "Smartphones have taken over from feature phones, tablet adoption is impacting PC spending and the cloud is affecting the traditional software, services and infrastructure markets. IT spending is still growing organically, but not at the same pace as prior to the financial crisis."

Embracing a new world order
As technologies evolve, the private sector will continue to implement adaptive strategies that give organizations the ability to leverage next-generation solutions and services without negatively impacting current operations. Doing so will become increasingly important in the coming years, especially if the macroeconomic crisis keeps impairing corporate spending habits.

"Businesses are adopting IT solutions such as virtualization, automation and SaaS as a means to reduce the annual increases in their overall IT spending at a time when economic uncertainty remains high," Minton said.

A separate report by IT Business Edge also highlighted how the cloud and mobile market will continue to affect the way decision-makers view and embrace IT changes over the next few years. The cloud in particular gives executives the power to adopt a flexible infrastructure, allowing their organizations to be more proactive in the IT industry by implementing tools before rival firms that are still in a reactive state of mind.

As the progressive cloud market continues to change the IT sector, enterprises and small businesses need to consider embracing the technology if they are to remain competitive in the years to come.

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