UK cloud infrastructure budget exceeds on-premise budget

Categories: Business Transformation
Tags: Cloud Research Cloud Solution Provider
vuzion-cloud-onprem-budget

One of the key findings reported in the recently published Cloud Industry Forum (CIF) paper, Cloud – The Next Generation, is that businesses now allocate 19 percent of their IT budget to cloud infrastructure – and for the first time, this figure is greater than that dedicated to on-premise legacy systems (18 percent of IT budget).

The paper – reporting the findings from a survey of 250 senior IT and business decision-makers from enterprise organisations, SMBs, and public sector bodies – claims that in three years’ time, the on-premise infrastructure amount will have reduced to just 12 percent, while 84 percent of survey respondents expect adoption of cloud services to increase over the next 12 months.

The report’s section on digital transformation opens with:

“Few terms have captured the attention of the business world more than digital transformation over the last few years. While few business leaders had come across the term a mere five years ago, today digital transformation sits at the top of near every board’s agenda – and with good reason. The speed and innovation facilitated by digital technologies have seen market leaders toppled and the balance of power shift from the old guard to the new breed of digital-natives. It is clear is that this sort of innovation is happening across the entire spectrum of businesses and that no vertical markets are immune.”

The paper goes on to say that many UK organisations are experiencing a ‘shortfall’ in digital transformation skills within their in-house IT teams – which means that there’s a growing opportunity for cloud solution providers.

Participants in the survey were asked to rank in priority order various criteria used when selecting a cloud solution provider, reported here from the least to the most important, and that the provider –

  • Is a small, specialist, with understanding of the particular organisation’s business (2%)
  • Are visionaries, to help the business build strategy (14%)
  • Offer the best price (14%)
  • Possess in-depth, technical knowledge (15%)
  • Want to develop a strong relationship with the business, and one built on trust (16%)
  • Is a large, stable company (30%)

Chris Hoard, Partner Consultant at Vuzion, says, “Clearly, a provider can’t be both small and large at the same time, but, it’s possible to combine elements of many these priorities.

“And that’s where partnering with an Indirect Provider, such as Vuzion, can really help.

“For partners looking to develop their technical skills and knowledge, we have Vuzion EDGE – our training and education programme – while Vuzion PRO incorporates our cloud expertise and support services, and which includes pre-sales, solutions design and cloud discovery support.

“And, of course, the Microsoft CSP (Cloud Solution Provider) programme was set up specifically to help providers build strong, long-term, relationships with their customers.” 

If you’d like any more information about how Vuzion can help you as a partner – or you’re interested in becoming a Vuzion partner – any of the Vuzion team will be happy to help.

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