IT expenditure affected by need for lower operating costs

Expert analysis has revealed that companies are planning their IT expenditure around their need to reduce their overall operating costs.

Larger companies will be focusing on core software and hardware next year, according to the survey of more than 400 companies. Companies want to ensure they have less downtime and that the potential return on their investment is as high as possible.

The vast amounts of data that companies need to store these days is influencing the way in which they spend their IT budget on hardware. Spending on items such as mainframes now accounts for 14% of the budget, which is second only to spending on laptops and tablet computers.

Business software spending is divided, with just over one-quarter (28%) of the budget used to cover the cost of licenses and almost one-quarter (23%) used for technical support and general maintenance costs. Microsoft accounts for 17% of spending among businesses, with the rising popularity of cloud computing seeing companies planning their budget to include SaaS and PaaS services, among others.

Cloud computing spending is now a higher cost for companies than traditional software, with many business making the cloud their first choice. Companies using a private cloud account for more than 40% of the total, with more than 30% turning to the public cloud and just under this number (28%) opting for a hybrid service.

These figures refer to budget allocation and it should be noted that private cloud services are often more expensive than other types of cloud.