Procuring software as a service (SaaS) is just one way that CFOs and CIOs are gaining flexibility in IT purchases. IDC reported that system management software vendors told the research firm that between 35 and 42% of software licenses they sold were SaaS deals. And in the networking space, Pucciarelli also singles out Brocade for an innovation called Brocade Network Subscription, which it described as access to a cloud-optimized network infrastructure without upfront capital investment. Instead, customers pay monthly for just the network infrastructure that they utilize.
Cloud computing is another way companies obtain flexibility in IT budgets, says Rohit Mehra, director of enterprise communications infrastructure research at IDC, who also presented at the San Jose event. His research, released in January, showed that 8% of IT professionals surveyed have already rolled out cloud-delivered business applications to mobile devices that their employees use, 25% more have completed a pilot project and plan to implement it, and that another 37% plan to implement such a project in the next 12-18 months. That adds up to a total 70% commitment to the flexibility of cloud computing.
“The trend is very clear,” Mehra says.
That's consistent with the recent InformationWeek Reports State of Cloud Computing Survey, which found 48% said they will use virtualization technology providers for cloud computing during the next 12 months, up 8% over last year, while 36% cite software as a service providers (I.e. Salesforce, SugarCRM, Intuit and NetSuite), which is up 5% percentage points. Among existing cloud users in the survey, 57% already use SaaS, 56% use virtualization tech providers, 42% use platforms and 27% use infrastructure.
In another InformationWeek Reports, IT Pro Ranking: Data Center Networking, 71% of respondents said they have recently completed a network rearchitecting project, are planning one in the next two years, or are in the midst of one, making the latter two groups ripe for a marketing pitch from rival vendors. The same percentage of respondents that are doing or planning a project say they are considering replacing their primary vendor, their secondary vendor or adding another vendor.
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