Study: Cloud services key in growing IT investment

A large percentage of companies plan to increase their IT budgets in the next 12 to 18 months, with cloud services a chief area of investment, according to a recent study.

The study, conducted by KS&R, examined more than 2,000 business and IT decision-makers at companies with between 100 and 1,000 employees.

Approximately 53 percent of respondents said their companies intend to expand their IT budgets in the next 12 to 18 months, compared to 16 percent that expect a decrease in IT spending.

Many companies intend to adopt managed cloud services in order to improve the manageability of their IT systems, reduce costs and minimize IT infrastructure redundancy. According to the study, 75 percent of respondents indicated their organizations plan to upgrade their core IT infrastructure in order to improve reliability, security and performance.

Jay Hakami, president and CEO of an IT company, said IT teams "are adapting very fast to the fact that they must do much more with less." According to Hakami, "companies are looking to quickly identify tools and efficient ways to support growth and innovation."

The results of the study indicate a significant shift in priorities since 2009. While the current study indicates customers, growth and innovation are priorities for most companies, in 2009 most businesses were focused on efficiency and cost control.