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February 2014

Cisco: cloud could cause conflict between buyers and channel

Growing adoption of cloud services is resulting in major changes in how customers procure, purchase and consume IT, and could store up trouble for the channel, according to a report produced by Cisco Consulting Services and Intel. The survey of 4,000 IT decision-makers revealed that in most businesses control of planning and purchasing was shifting away from the IT department towards lines of business (LOBs) such as HR, sales or accounting. Cisco’s report, ‘The Impact of Cloud on IT Consumption Models’ suggests that the UK has reached a tipping point in terms of IT spending, with close to 45% of funding currently controlled by LOBs, and close to 60% of respondents believing that figure would increase. The research showed two key drivers behind this, notably the popularity of BYOD schemes and the general trend towards delivery of IT as a service. With increasing responsibility for IT being devolved to LOBs, Cisco identified a number of changes that could overtake the IT department, with 70% predicting that the IT department will ...

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