Compliance and Governance
Transforming Banks for a Digital Future: The Winners, The Losers, and the Strategies to Beat the Odds
Though third on the list above, we consider compliance and governance budgets to be affected the most by cloud spending out of all budget areas analyzed in this survey. Why? Because the compliance budget is the area that is least likely to see any decreases in cloud spending.
Another similar spending area is mobile devices: 47 percent of respondents say cloud-related spending increases this budget category. And, when asked how actual 2010 spending was different--either higher or lower--than what was budgeted, respondents reported that, as a result of their organization's cloud deployments, they spent 8 percent more, on average, than was budgeted for mobile devices directly. (See Finding 2.2.) For that reason, we think mobility is a key area to watch as you plan your cloud spending in the months ahead.
Another area to watch is the applications development budget. Here, cloud initiatives are bringing 2011 spending 6 percent over what would otherwise have been budgeted in this category. This area is undergoing a transformation to service-oriented models, as well as to mobile-oriented models, as a result of the proliferation of cloud infrastructures.
While 44 percent of respondents say that their server hardware investments need to increase, nearly a third of respondents (32 percent) report that these investments have actually been decreasing. This means that servers are a likely area for rationalizing in organizations where existing installations are sufficiently up-to-date.
We suggested above that the growth of private cloud computing budgets should be tempered as the adoption curve progresses. We're not at that part of the curve yet: Our survey shows robust growth in spending of 15 percent in the typical organization in 2011 compared with 2010 levels. (See Finding 3.1.)
Will this significant startup investment be mitigated at all by so-called "hybrid" clouds? First, a little perspective on hybrid cloud computing.
We've noted that cloud computing isn't a technology; frankly speaking, hybrid clouds are not really a type separate from public or private clouds. Anywhere the latter two are used and show any interaction--simple enough with the extensive development of pre-cloud Web services, service-oriented architecture, CORBA or any other middleware--is an example of a hybrid cloud.
Roughly half of respondents (49 percent) have dedicated spending on at least one application that combines public and private clouds. (See Finding 3.2.)
It's important to note, though, that more than half of respondents (52 percent) say that this hybrid approach will have no impact on spending. (See Finding 3.3.) When it does, it's most often to reduce costs and usually on the private cloud computing side. In other words, this is smart use of clouds: private when you have to (which is pretty often) and public otherwise, because public is a lower-weight investment. You can apply this on a feature-by-feature basis if you wish, and not just wholesale for entire applications.
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