We’ve been hearing about it for several years now: that IT departments will shrink or disperse as cloud computing takes hold in enterprises. A new survey, however, suggests that IT departments are actually expanding, and IT leaders are taking on elevated roles within businesses as a result of cloud.
The survey of 4,226 IT leaders across the globe, conducted by Cisco Consulting Services, in partnership with Intel, finds that while cloud adoption within enterprises is growing — now accounting for 23 percent of IT spending, and expected to rise to 27 percent over the next three years — there is no discernible reduction in on-premises IT taking place. In fact, a majority, 57%, see the size of IT increasing in terms of full-time IT headcount. Photo credit: CERN Press Office
Rather than viewing IT as marginalized, 76 percent of respondents see IT as taking on a new role as a “broker,” or intermediary, of cloud services, orchestrating the planning and procurement process for lines-of-business (LOBs) across internal and external clouds while managing third-party complexity.
The study’s authors note that while the increased centralization and elevation of IT resources may seem counterintuitive in an era in which many LOBs are taking on their own technology budgets and initiatives. Indeed, the survey also finds that LOBs are funding 44 percent of total IT spending globally, and 69 percent predict that this share will only increase over the next three years. “Rogue” or “shadow” IT spending may imply an even higher percentage of IT spending by LOBs — 55 percent say they have witnessed a “somewhat” or “significantly increasing” incidence of so-called “shadow IT spending” over the past two years.
However, IT leaders provide a ”level of coordination, consistency, and security atop what is clearly a fragmented innovation landscape among LOBs, including both customers and partners,” the study states. This calls for greater partnership and coordination between business and IT leaders as cloud adoption accelerates within enterprises.
Much of the purchasing of IT services is shifting directly to business managers — but they still need and seek the guidance of their technology leaders to make sure their investments are going to the right places.
Retrieved from Forbes