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As Enterprise Cloud Computing Adoption Matures, Investments In Application Development Increase

As Enterprise Cloud Computing Adoption Matures, Investments In Application Development Increase

Application development (34%), managed services (27%), ERP implementations (22%) and cloud (20%) are the highest spending priorities for enterprises in 2015 according to the latest Cowen & Company IT spending survey.

53% of enterprises plan to purchase Infrastructure-as-a-Service (IaaS) services from an IT services provider.

21% year-over-year spending growth on SMAC technologies is forecast between 2014 and 2015.

Funding is expected to increase 7 to 8 times vs. average IT Services budgets for digital and SMAC-based initiatives this year.

These and other insights are from Cowen & Company’s Mid-Year 2015 IT Spending Survey published May 26th (client access). The methodology is based on 95 responses from companies representing more than $51M in IT spending and a number of verticals, including: Financial Services (36% of respondents), Manufacturing (25%), Retail (14%), Healthcare Pharma (16%), Healthcare Payer (4%) and Hospitality & Entertainment (5%). Respondents’ roles included CEO, CFO, COO (21 % of respondents), CIO, CSO and CTO (45%), other IT executives (2%), and IT senior management (32%). Respondents are forecasting second-half CY 2015 IT Services spending to grow 5.4% compared to first-half CY2015.

Key take-aways include the following:

77% report meaningful adoption of the cloud already and believe more processes could be moved to that platform. The progress enterprises are making with cloud adoption from June, 2014 to last month’s survey illustrates how enterprises’ cloud computing strategies are maturing. The figure below compares the last year of data regarding cloud adoption plans.
53% of enterprises plan to purchase their Infrastructure-as-a-Service (IaaS) solutions from an IT services provider. Cowen & Company’s research team believes that existing relationships and the trust between the enterprises’ senior management teams and IT Services teams explain the dominance of IT Services vendors in this area.
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73% of respondents are expecting to adopt Microsoft Azure over the next 12-18 months. Citrix CloudPlatform (44%), Cisco (44%) and VMWare Hybrid Cloud (36%) are the most-mentioned providers enterprises are expecting to use in the next 12 to 18 months.
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40% of enterprises will have from 25% to 49% of their workloads in public clouds in five years. Over the next three years, the majority of enterprise senior executives forecast between 21 to 30% of applications will be SaaS-based.
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57% of enterprises expect their budget to increase the most for Adobe, Salesforce (43%) and LinkedIn (38%) apps in the next twelve months. Salesforce had a significant jump from December, 2014 to May, 2015, increasing from 39% to 43% of respondents expecting their budget to most increase for the CRM vendor’s apps and solutions. LinkedIn’s B2B focus shows how enterprises are relying more extensively in SMAC-based technologies to strengthen their lead generation and selling strategies.
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Amazon (66%), Informatica (27%), DataStax (26%) and HortonWorks (22%) are the four analytics and data platform vendors enterprises expect to see the biggest budget increases from in 2015. Cowen & Company’s research team found that cloud and open source vendors were consistently highlighted as receiving larger budget increases this year relative to the norm. Cowen believes infrastructure investment is expected to increase more than business intelligence (BI) investment. Next-gen data platform vendors including Hortonworks, Cloudera, and DataStax are projected to gain a bigger spending increase than next gen BI vendors including Tableau and Qlik as a result.
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Database alternatives most evaluated when deploying new applications include Microsoft SQL Server (63%), Oracle (51%) and SAP HANA (38%). IBM showed the biggest decline in spending plans, dropping from 36% in December, 2014 to 26% in the most recent survey.
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Application development (34%), managed services (27%), ERP implementations (22%) and cloud (20%) are the highest spending priorities for enterprises in 2015. Cowen & Company found respondents are concentrating on DevOps as a means to continually develop new apps and maintain existing code while ensuring a smooth, continuous delivery cycle. Orchestrating and speeding up internal app development is also a contributing factor to increased SMAC-based technology investment as many enterprises struggle to stay in step with the quickly changing information needs of their customers.
iPhone Android App Design programming and Development in Kuwait
iPhone Android Application Design and Development in Kuwait
iPhone App Development in Kuwait
Android App Development in Kuwait
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