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Most US Companies Plan to Increase Public Cloud Spending 15 Percent or More in 2015

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Indicating greater confidence in cloud infrastructure and expanding budgets for public cloud workloads, a new survey shows that 64 percent of companies will spend at least 15 percent more on public cloud infrastructure in 2015.

This is among the findings included in the 2015 Enterprise Cloud Predictions and Trends survey from 2nd Watch, a managed services provider specializing in managing public cloud workloads. The survey, which included input from 425 IT managers and executives at large and midsize companies in the US, found that 54 percent of companies polled will invest 15 to 25 percent more next year on public cloud infrastructure. Ten percent will increase public cloud infrastructure budgets by 30 percent or more.

“It’s no surprise that enterprise organizations will be investing more in the public cloud next year, given the level of innovation occurring right now at companies like Amazon,” 2nd Watch CEO Doug Schneider said in a statement. “Yet clearly, companies need help in critical areas like workload management and security, and the market will need to deliver on those promises to help further enterprise cloud adoption and ROI.”

While overall cloud spending is increasing in most cases, many organizations are finding that overall IT cost savings from replacing on-premise infrastructure with public cloud infrastructure. Savings happens to be the biggest potential benefit to running more public cloud workloads, according to the survey.

When asked to rank enterprise IT trends, 36 percent survey respondents chose hybrid cloud as the most popular trend, followed by big data (20 percent), Internet of Things (18 percent), mobility (12 percent), software-defined data center (nine percent) and containers (four percent).

Many organizations said they are seeking out IT workers with experience managing public cloud workloads, as well as networking and storage experts, big data specialists, and migration consultants.

2nd Watch, which manages Amazon cloud services for thousands of customers, has often released data on how organizations use public cloud infrastructure. It recently presented a report that shed light into how its customers use AWS services including data such as which server instances they bought and which operating systems were most popular.

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About the Author

David Hamilton is a technology journalist and Contributing Editor of the WHIR. Based in Toronto, David has covered the hosting industry internationally for the WHIR with particular attention to innovative hosting solutions and the issues facing the industry. He has written for the National Post and other news outlets, and is a graduate of Queen’s University and the Humber College School of Media Studies.

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