A Quick Reality Check

It’s always refreshing for a study or data point to add a little reality to the hype surrounding industry buzzwords, as we certainly tend to get ahead ourselves.

A 2009 survey on IT spending by Goldman Sachs ranked cloud services #33 on the list of spending priorities among CIOs, with about 50 percent citing that it was a low priority. Software as a service ranked even lower at #36, with more than 60 percent categorizing it as a low priority.

I think stats such as that are truly telling, because it was just a year ago that on-demand, which is still the fastest growing deployment model among many enterprise applications, was king of the hill. I think this is a simply a case of one industry buzzword replacing another.

It seems every technology goes through a hype cycle during which the technology is debuted, the buzz and anticipation builds around its capabilities and business benefits and finally crescendos. It’s usually around this point that the realization of the technology’s limitations are made clear by real-world case studies and a more reserved approach is taken by industry analysts about its pros and cons as the technology begins to mature.

As the Goldman Sachs survey underlines, the hype around these technologies are all too premature until CIOs start actually spending money to back that hype up. For a look at other CIO priorities, click here.