Economic headwinds pushing CIOs to increase cloud investments

Experts say inflation, rising interest rates and market volatility are pushing CIOs to increase their investments in cloud-based IT infrastructure and software, The Wall Street Journal reported July 14. 

Four things to know:

  1. In 2022, companies worldwide are expected to ease up on information technology spending.

  2. The current economic standing is pushing IT executives to focus their budgets on subscription-based cloud software and services, which can offer the advantage of spreading out costs through ongoing subscriptions, rather than lump-sum purchases.

  3. IT research and consulting firm Gartner said current tech expenses will be driven by an anticipated $806.8 billion in spending on software, up 9.6 percent from last year.

  4. Gartner also said it expects spending on new servers by cloud providers to grow 16.6 percent, as they build out capacity in data-center facilities.

Experts say they do not expect a large decline in IT budgets, but say cloud computing is one of the few areas where IT spending is expected to outpace 2021. 

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