January 11, 2011 – Cloud computing will grow at the expense of other IT ventures as more companies funnel their spending toward deployment, according to new analysis from Saugatuck Technology Inc.

In a research report entitled “Key SaaS, PaaS and IaaS Trends Through 2015 – Business Transformation via the Cloud,” Saugatuck anticipates 65 percent or more of new enterprise IT spending to be cloud-based by 2015. Within the next four years, one quarter of total enterprise IT workloads will be cloud-based or hybrid, and 15 percent or more of enterprise spending will be cloud-based or hybrid, according to the report.

Additional IT and data management spending linked to an uptick in the overall economy is partially behind Saugatuck’s findings. On top of that, Saugatuck predicts more investment in on-site or deployed clouds because of the desire for more effective and dynamic BI and storage solutions, aging infrastructure and the opportunity for cost reductions from virtualization and off-site IT.

More than 31 percent of firms globally are already involved in some stage of cloud deployment, a number that Saugatuck stated should rise sharply in the next few years. Instead of replacement for legacy systems and solutions, Saugatuck notes that the cloud’s role in the next four years will continue to be enhancements to process functionality and capability.

Saugatuck research indicates that the fastest growing companies in any marketplace will be those deeply invested in the cloud. Businesses slow or hesitant to adopt cloud IT will lose financial opportunities and competitive advantage, according to Saugatuck.

With the shift in spending toward the cloud, Saugatuck analysis foresees a continuation in acquisitions of smaller cloud innovators by big vendors.

To read more on cloud trends, click here.

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