Corporate IT Budgets in 2016: Experts Anticipate Continued Focus on Cloud and SAAS Investments

It’s the time of year when corporations across a variety of industries gather their executives and leaders from all departments in order to discuss and set predicted budgets. Most companies begin these conversations, goals, and strategies soon after the Labor Day holiday.

When many IT leaders from different industries were questioned about their 2016 budget predictions, the majority indicated that their intent is to focus next year’s budget spends on the continued development of private or hybrid cloud infrastructure.

These cloud options have many benefits that will assist organizations with essential growth and longevity. On the hybrid cloud, a company can be enabled to quickly implement new functions, while most likely maximizing cost-efficiency through automated arbitrage. And since the hybrid cloud can move seamlessly between cloud models and bridges the gap between old and new systems, it will prove more than beneficial. It will also allow the company to maintain in-house security for confidential business operations, eliminating third party vulnerabilities. The company using a private cloud will also increase the business’ scalability by holding the ability to access both the private and public clouds.

From CIO.com, Scott Gilgallon, VP Channels & Business Development of Appcara framed things through the “as-a-Service” lens, stating that, “2016 is shaping up to be the year of multi-cloud adoption and multi-cloud application management. IAAS, SAAS, PAAS providers have proven the cost saving, mobility, security and elasticity of cloud computing. In 2016, we will see a much higher demand for enabling management, delivery and extensions across multiple public cloud providers, private cloud applications and hybrid cloud providers.”

John Matthews, CIO of ExtraHop agrees, adding that, “Cloud – SaaS, IaaS, PaaS, and hybrid – are going to continue to pull more and more budget from traditional on-premises offerings. In 2016, expect to see continued downward pressure on datacenter spend as more and more enterprises work to build and run hybrid cloud environments.”

Corey Nachreiner, CTO of WatchGuard Technologies, predicts that “CIOs should expect a slight increase in their overall IT budget, due to the positive state of the economy and the overall need to modernize IT services. CIOs will continue to increase their cloud spending, taking advantage of the benefits of OpEx expenditures.”

To read more predictions from CIO, click here.