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Over the past few years, enterprises have strived to move as much as possible as quickly as possible to the public cloud to minimize CapEx and save money. In the rush to the public cloud, a lot of people didnt think about pricing, says Tracy Woo, principal analyst at Forrester. Are they truly enhancing productivity and reducing costs?
With the incremental differences in the major enterprise cloud environments today, that may be enough. He said that the new services are, not unexpectedly, trying to get enterprises to align with AWS services, which should make it more difficult to later move to a competing cloud platform. “Is
New research from IBM finds that enterprises are further along in deploying AI applications on the big iron than might be expected: 78% of IT executives surveyed said their organizations are either piloting projects or operationalizing initiatives that incorporate AI technology.
Nobody wants to waste money on cloud services. But by failing to fully address a handful of basic issues, many IT leaders squander funds on cloud services that could be used to support other important projects and initiatives especially as AI comes along to alter the cloud economics equation.
Enterprises in Germany, Austria, and Switzerland are accelerating their transition to cloud-based ERP solutions, with SAP playing a key role in their digital transformation strategies. However, there is a notable decline in organizations maintaining a stable SAP budget, with only 23% keeping spending unchanged compared to 32% in 2024.
One of the most significant enablers of digital transformation is cloud computing. Strategic options for cloud adoption When it comes to cloud adoption, organizations have several strategic options to consider. Public cloud. Private cloud. Hybrid cloud. Multi-cloud.
The Index showed that 50% of those surveyed have between 10% and 30% of their current IT budget dedicated to AI. Enterprises are updating their infrastructure to prepare for AI, and then they’re preparing for pervasive deployment of AI applications.”
For instance, Capital One successfully transitioned from mainframe systems to a cloud-first strategy by gradually migrating critical applications to Amazon Web Services (AWS). Additionally, leveraging cloud-based solutions reduced the burden of maintaining on-premises infrastructure.
Outdated software applications are creating roadblocks to AI adoption at many organizations, with limited data retention capabilities a central culprit, IT experts say. With legacy apps tying up a significant portion of an organizations IT budget, less money is available for new initiatives, further slowing down AI adoption.
And, the company said in its The State of the Enterprise Edge report presenting the survey, the top benefits respondents plan to achieve by implementing edge solutions are faster response times for latency-sensitive applications (68%) and improved bandwidth/reduced network congestion (65%). The way that they use the network is different.
When addressed properly , application and platform modernization drives immense value and positions organizations ahead of their competition, says Anindeep Kar, a consultant with technology research and advisory firm ISG. The bad news, however, is that IT system modernization requires significant financial and time investments.
Until now, many companies have cut costs in other areas, laid off staff, or raided the budgets of other departments to pay for AI projects. If you look at 23 and 2024 you had a lot of budget increases, you had a bunch of layoffs over the last couple of years, and not something thats sustainable.
CIO’s cybersecurity budget allocations are too spread out across a myriad of single solutions. Cyber budgets get stretched too thinly across single solutions when they should match the organization’s IT and software spending priorities. the majority of its cybersecurity budget should go to protecting these investments.
However, many face challenges finding the right IT environment and AI applications for their business due to a lack of established frameworks. Currently, enterprises primarily use AI for generative video, text, and image applications, as well as enhancing virtual assistance and customer support.
Global professional services firm Marsh McLennan has roughly 40 gen AI applications in production , and CIO Paul Beswick expects the number to soar as demonstrated efficiencies and profit-making innovations sell the C-suite. Enterprises are also choosing cloud for AI to leverage the ecosystem of partnerships,” McCarthy notes.
Despite those complications, a huge majority of IT leaders expect their organizations’ IT budgets to increase — at least moderately — in the next fiscal year, with IT talent and software spending leading the way. Talent, software spending lead the way According to Forrester’s guide, personnel accounts for nearly 35% of IT budgets.
Yet, despite its potential, cloud computing has not fully leveraged these advantages in managing complex cloud environments. Much like finance, HR, and sales functions, organizations aim to streamline cloud operations to address resource limitations and standardize services.
At the other end of the speed spectrum, the Ethernet Alliance also produced the first Single Pair Ethernet plugfest to advance seamless interoperability for products and services designed for 10BASE-T1L applications. That is a standard based on the IEEE 802.3cg specification that was finalized in 2019. Terabits/second Ethernet.
Budget planning during uncertain economic times is never CIOs’ favorite activity. For the most part, budgets are holding steady or growing in the single digits, with continued investments in security, analytics, and the cloud, among other areas. Gartner predicts 2023 IT spending will grow 5.1%
For CIOs tasked with managing IT budgets while driving technological innovation, balancing these costs against the benefits of GenAI is essential. million in 2026, covering infrastructure, models, applications, and services. But alongside its promise of significant rewards also comes significant costs and often unclear ROI.
But lately, some licensees of virtual desktops and applications have been confronted with abrupt changes and even forced to accept and pay for unwanted features. The writing is on the wall for terminated support of legacy applications, no matter who the vendor is. Some do it with a measure of grace.
IT leaders seeking to drive enterprise growth through technology investments are often saddled with budgets that make their tasks of increasing the top and bottom lines challenging. Despite an estimated increase to IT budgets of 5.1% The year 2023 seems to be no different.
With the combined challenges of tight IT budgets and scarcer technical talent, it’s becoming imperative for enterprise network pros to embrace automation of processes and the way infrastructure responds to changing network traffic.
width="2500" height="1406" sizes="(max-width: 2500px) 100vw, 2500px"> With a new Business Suite in the cloud, in which all functional modules are integrated with each other along the process chains, SAP wants to build on old on-premises successes. In future, this will be sorted in the Business Data Cloud (BDC).
Upgrading cloud infrastructure is critical for deploying broad AI initiatives more quickly, so that’s a key area where investments are being made this year. The numbers are higher from Foundry’s 2023 State of CIO survey , which finds that 91% of CIOs expect their tech budgets to either increase or stay the same in 2023.
It might be an unrationalized applications portfolio. Or maybe youre well down the road to a cloud migration but havent applied your Ops teams ITIL expertise to it. Reframe the conversation Thats when its time for you as CIO to have a tough conversation with the Powers That Be about the IT budget.
If you’re stressing over cloud cost increases, you’re not alone. Three out of every five organizations saw cloud spending increase in the past year, with nearly four in 10 who experienced price hikes saying their costs jumped by more than 25% — this according to a recent survey of IT professionals commissioned by cloud provider Civo.
Azures growing adoption among companies leveraging cloud platforms highlights the increasing need for effective cloud resource management. Enterprises must focus on resource provisioning, automation, and monitoring to optimize cloud environments. As Azure environments grow, managing and optimizing costs becomes paramount.
Oracle has updated its Fusion Cloud Human Capital Management ( HCM ) suite with a new AI-powered feature, dubbed Oracle Dynamic Skills. However, Dynamic Skills is not new and was initially introduced in April 2023 as part of Fusion Cloud HCM. The features were announced at the Oracle CloudWorld 2024 conference.
Today’s cloud strategies revolve around two distinct poles: the “lift and shift” approach, in which applications and associated data are moved to the cloud without being redesigned; and the “cloud-first” approach, in which applications are developed or redesigned specifically for the cloud.
Re-platforming to reduce friction Marsh McLennan had been running several strategic data centers globally, with some workloads on the cloud that had sprung up organically. The idea, Beswick says, was to enable the creation of an application in days — which set a.
“People are finding that steady-state workloads can be run much more effectively and cost-effectively in their own data centers,” said Ramaswami, highlighting how X (formerly Twitter) optimized its cloud usage, shifting more on-premises and cutting monthly cloud costs by 60%, data storage by 60%, and data processing costs by 75%.
It’s no longer a question of whether organizations are moving to the cloud but rather how well it’s going. Cloud isn’t that shiny new object in the distance, full of possibility. Companies may have had highly detailed migration or execution plans, but many failed to develop a point of view on the role of cloud in the enterprise.
In the ever-evolving landscape of cloud computing, today’s leading enterprises are seeking ways to optimize their operations and enhance their security measures. Cloud costs and security are two critical aspects that every organization must carefully manage, and they are more closely intertwined than you might think.
Collaboration – Enable people and teams to work together in real-time by accessing the same desktop or application from virtually anywhere and avoiding large file downloads. Help your apps and budget perform Give your creative apps a boost by consolidating your graphics workstations alongside existing cloud storage and renderfarms.
Liberty Mutual is one of the most experienced and advanced cloud adopters in the nation. And that is in no small part thanks to the vision of James McGlennon, who in his role as CIO of Liberty Mutual for past 17 years has led the charge to the cloud, analytics, and AI with a budget north of $2 billion.
Free the AI At the same time, most organizations will spend a small percentage of their IT budgets on gen AI software deployments, Lovelock says. While AI projects will continue beyond 2025, many organizations’ software spending will be driven more by other enterprise needs like CRM and cloud computing, Lovelock says.
After marked increase in cloud adoption through the pandemic, enterprises are facing new challenges, namely around the security, maintenance, and management of cloud infrastructure. According to the Foundry report, 78% of organizations say that, in response to cloud investments made by the organization, they have added new roles.
Yet it’s rare for any business leader not to say they wish they had a better ROI from their cloud spend. This often took both budget and control away from CIOs. Design cloud approaches automatically scale up and down based on demand. With more experience under their belts, these teams are embarking on what they call “cloud 2.0”
Cloud costs remain a key concern for IT leaders, who find themselves nearing a crossroads where expenditures for core workloads will need containment to free up spend for innovation. 1 barrier to moving forward in the cloud. Cloud costs continue to be a top concern for CIOs,” says Dave McCarthy, analyst at IDC.
It feels like just yesterday that we were promised that cloud servers cost just pennies. When the monthly cloud bill arrives, CFOs are hitting the roof. Cloud cost managers are the solution. Smaller teams with simple configurations can probably get by with the stock services of the cloud companies.
The imperative for APMR According to IDC’s Future Enterprise Resiliency and Spending Survey, Wave 1 (January 2024), 23% of organizations are shifting budgets toward GenAI projects, potentially overlooking the crucial role of application portfolio modernization and rationalization (APMR). Employ AI and ML to assist in processes.
But this enthusiasm is tempered by the realities of implementation and integration, coupled with fear of over-depending on rapidly evolving AI cloud service providers. Many CIOs and CTOs are assessing the risks of placing too much faith in public cloud AI platforms. 1 Foundry, AI Priorities Study 2025, [link]
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