Report

Why Cloud Computing Might Not Dampen IT Spending

Table of Contents

  1. Summary

Analysis

The question was posed earlier this week as to whether cloud computing ultimately will represent a permanent downshift in IT spending, or whether it will become another channel for growth. Conventional wisdom, as well as Goldman Sachs, suggests the former: While spending will rise in the short-term as companies and cloud providers update their data centers, their investments in virtualization and automation technologies actually will decrease the need for spending in the long-term. It’s a solid theory, but I see the latter theory being equally possible.

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