Heads up: You could soon be spending more on the cloud

Some of it may be through increased usage. Some of it could be due to rising prices. But almost everyone is going to need to devote more of their budget to the cloud soon. 

According to analysts from IDC, cloud infrastructure spending is going to reach $33 billion (with a ‘B’) in 2015. This is a 26.4% increase on cloud spending, but non-cloud IT infrastructure spending is set to remain stagnant or decrease, according to IDC.

In other words, get ready for cloud infrastructure to take up more of your budget.

Where cloud budgets are going

Much of that growth is seen in the public cloud.

Public cloud infrastructure is expected to grow 32% in 2015 and another 16% year-over-year after that.

This comes as several cloud providers worldwide have also announced upcoming price increases for their services. While these are often outside of the United States, it could signal the end of a sweet deal for IT: prices being dropped over and over on cloud services by the major providers in an attempt to win over loyal customers.

Changes afoot

While these changes might reflect overall trends, remember that it is usually possible to negotiate better deals on cloud services.

But in the coming years, the once tried-and-true “put it in the cloud and realize savings” formula may no longer be the case. And by that time you may not have the infrastructure, expertise or ability to bring services back in house.

In the meantime:

  • Update your budget to more accurately reflect a realistic level of cloud spending.
  • Determine which resources you have absolutely no interest in moving to the cloud and which you may consider at a future time, and
  • Look into alternative providers who may be able to get you better deals for switching services.

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