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IT budgets to change in the coming years

Wednesday 20th January 2010

IT budgets will undergo a seismic shift in the coming years as firms spend more on new developments, one industry expert has claimed.

Writing for CIO, Capgemini consultant Dave Pepperell said that currently the servicing of legacy IT equipment accounts for as much as 80 per cent of firms' IT budgets.

However, Mr Pepperell claimed that this is set to change as businesses begin to extract savings from the servicing budgets, allowing them to spend more on new equipment such as virtual private servers.

He said that as cloud computing services become more widespread, chief information officers (CIOs) will be able to realise a number of budget savings.

Mr Pepperell added: "CIOs are considering deploying cloud-based solutions to take costs out of commodity infrastructure services, including email and backup.

"And even where CIOs are not able to use public cloud services, they are implementing private cloud techniques such as virtualisation to improve server efficiency."

Last year, Star marketing director Martino Corbelli claimed that cloud computing offers safer data storage than all but the most expensive in-house systems.

Written by Chris BallADNFCR-2050-ID-19567003-ADNFCR