Increased Spending on Public Cloud Computing Services

This week, the world's financial markets have been negatively impacted by continued concerns about the global economic outlook. There has been little good news about the economy lately, particularly regarding the U.S. jobs forecast.

That said, enterprise related IT spending has apparently been one positive forward-looking market indicator -- particularly the current and planned use of managed cloud services.

According to the latest market study by In-Stat, enterprise business spending on IT and telecom services -- which include cloud computing, wireless, wireline voice, wireline data, and business IP/VoIP -- will move in a positive direction in 2011, increasing by healthy 6 percent.

"There will be positive growth across all 20 verticals with education and healthcare & social services leading the surge with growth of 10 percent and 9 percent respectively,” says Greg Potter, analyst at in-Stat.

These forecast increases in spending are across all product groups except wireline voice, which will decline by about half a percent.

In-Stat's latest market study findings include:

• Enterprise spending on public cloud computing services is set to expand 139% from 2010 to 2011.
• Enterprise spending on wireless data is set to approach $17 billion in 2015.
• Enterprise spending in the healthcare sector on wireline data will approach 2 billion in 2014.
• Enterprise spending on wireline voice will remain flat, with traditional TDM services continuing their decline, only reaching $3.4 billion in 2011.

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Intro to the Business Technology Roundtable

Today, the application of technology is an integral part of most businesses – in some shape or form. However, while many decision makers are now primarily concerned with using technology to pursue new business opportunities, and gaining business-related capabilities is their main objective, the vendors and suppliers that they encounter sometimes don't speak the same language.

Matching buyer's business needs with technology vendor's offerings is sometimes referred to as the business/technology alignment chasm. Filling that void with substantive information, meaningful guidance, and compelling "how-to" storylines is the charter of the Business Technology Roundtable (BTR). We seek to shed light where there has been an apparent absence of editorial illumination.

A business technologist -- perhaps a new term to some -- should be focused on driving business technology adoption, rather than purely the acquisition of new systems.

They should also value delivering business results promptly, instead of merely applying inventive product features and functions. Once informed, they'll likely crave low-cost integration into existing business processes, pay-as-you-go pricing, and efficient knowledge transfer.

Given this backdrop, new business technology adoption is often more dependent upon changing behavior than the common prior scenario -- changing underlying technology.

Within this new scenario, the insights and recommendations of trusted peers and independent subject-matter experts supersede all others in the process of choosing a justifiable approach, and supporting key business decisions.

As the co-authors of BTR, we will be on the lookout for resources -- plus proven and repeatable processes -- to speed-up the shift to subscription-based business technology offerings. We'll also highlight the competencies required to enable the facilitation of adoption education and acceleration.

A Call to Action
We invite you to join us in an exploratory dialogue about managed Business Technology services, and welcome contributions of your ideas and associated expertise, as we embark upon this journey together.

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