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