Businesses will Ditch Their IT as Cloud Takes Hold
♫ Tuesday, July 5th, 2011![]()
According to Gartner, by 2012, 20 per cent of businesses won’t own any of their IT assets, including servers, PCs and software, as turning to leasing, employee ownership schemes and cloud computing instead.
The change is largely related to businesses preferring to fund their IT through operational expenditure rather than capital expenditure. Leasing equipment from specialist companies will be another increasingly popular way for businesses to help ease the burden on capex.
“Anything that puts you into contract where you can avoid the lump sum expenditure and amortise the payments over a longer period of time is something that appeals,” Gammage said.
The growing number of CFOs taking overall control of the IT department will also play its part in encouraging enterprises to do away with their own hardware and software estates.
“The finance and CFO-type function, having acquired the requisite understanding to be able to make decisions about IT, and don’t think that control is going to come back.”
“They will look at this in a much more [profit and loss], balance sheet-type way and that is absolutely a driver” in companies no longer having their own assets, Gammage added.
Businesses are also likely to cede ownership of their assets thanks to developments in technology: with the greater availability of hosting and cloud computing, businesses can pay to use software, processing power and storage without having to buy, install and maintain servers in their own office.
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