Why Companies Are Cutting Back Cloud Investments

By Dennis McCafferty  |  Posted 10-05-2016 Email

While the cloud remains a versatile resource for business functions, organizations are reducing their overall adoption of cloud tools, according to a recent survey from CompTIA. Don't get us wrong here: The resulting "Trends in Cloud Computing" report doesn't convey the impression that the cloud will soon go the way of the eight-track music tape. However, CIOs and other company leaders are reassessing their investment options, and are concluding (for now at least) that certain capabilities are best supported internally. Among functions and needs that are seeing a notable reversal here: email, overall business productivity, collaboration, analytics and, yes, even the help desk. However, the cloud should continue to deliver strategic value, especially since such migrations enable businesses to reduce costs while modernizing antiquated legacies. "The cloud market is undergoing refinement as users gain greater appreciation and understanding of what cloud computing entails," said Seth Robinson, senior director of technology analysis at CompTIA. "This is a good reminder that a significant number of businesses are still learning about cloud concepts and performing experiments, pilots and initial migrations. This rebalancing doesn't mean that the overall cloud market is in decline. (The) cloud is a robust part of the larger IT landscape and a greater part of total IT spend will shift to cloud technology. Cloud offerings will also expand budgets as they expand the limits of what a business is able to accomplish." An estimated 500 business and IT execs took part in the research.

Dennis McCafferty is a freelance writer for Baseline Magazine.


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