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Q: For areas of decreased spending, what is driving the change?

Dennis Adams identified a steady decline in the use of hardware consolidation over time in our annual IT budgeting survey. According to Adams, "This may be a result of the movement of hardware to the cloud or the notion that companies are reaching a limit to the amount of consolidation that is actually possible. Very few of our respondents, however, tell us that cloud computing is saving them money. It may be fair to say that even though there is a growing amount of press regarding cloud computing, it has yet to make a significant impact on most companies. However, 29% of our respondents told us that cloud computing is considered a long-term initiative for managing costs. So, while it has yet to make a significant impact on annual budgets, as a longer-term strategy, interest in cloud computing is definitely growing."

* Excerpted from "Slowly Rebuilding IT Budgets: Cautiously Investing in the Future," (Login Required) Cutter Benchmark Review, Vol. 13, No. 4.

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