October 26th, 2012 by Leonard Klie

When it comes to the cloud, companies today aren’t holding back—or at least they’re dedicating more resources there than in other IT areas, according to new research from Gartner.

The research found that spending on public cloud services is expected to increase at 19 percent compound annual growth rate through 2016, while overall IT spending is only expected to grow at a modest 4 percent per year during the next four years. Those projections are up from what analysts had previously expected. Past studies projected cloud services to grow 12 percent to 15 percent.

Continuing to fuel this move, despite sharp increases in cloud adoption from larger enterprises, are many SMBs, which Strategy Analytics says have moved nearly all of their applications to the public cloud, and will be looking to move their remaining applications there within the next two years.

But is this the best idea? Not necessarily, two Gartner analysts warn. Daryl Plummer and David Mitchell Smith came out this week saying that there are definitely some apps that can safely be ported to the cloud, while others are better left at home. Apps that can go to the cloud now are email, productivity apps, CRM apps, Web servers, prototyping, and collaboration tools. Apps that should be moved “a little later” are product design, help desk, account management, and evaluations. However, companies should not move core systems, such as high control apps with sensitive data or deep integration to other systems, into the cloud any time soon, they warn.



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