A recent IT spending survey of over 300 enterprise IT executives identified some significant implications of the ongoing shift toward cloud. Respondents to the Flexera 2020 State of Tech Spend Survey, representing companies with more than 2,000 employees, indicated that their use of cloud is growing rapidly.
However, organizations are still struggling to manage their cloud costs as well as their overall IT spending. Enterprises also predict that these shifts will shake up their use of technology vendors. Bottom line: Organizations have work to do in order to optimize spending on their growing—and increasingly cloud-focused—IT portfolios.
Cloud is a significant and growing portion of IT spending
Respondents to the IT spending survey indicated that a quarter of their IT investments now go to cloud solutions, including public cloud (IaaS/PaaS) and SaaS solutions. This is now larger than the amount spent on traditional on-premises software. Almost a quarter of their software spend is now SaaS, while the remaining three quarters is on-premises software.