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For CIOs

Cloud Investments Will Reconfigure Future IT Budgets

As-A-Service Computing Will Shift Budgets From New Project Spending To Ongoing MOOSE Expenditures

January 8, 2013

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Why Read This Report

In 2012, for most CIOs, spending to maintain and operate the organization, systems, and equipment (MOOSE) represents more than 70% of their information and communications technology (ICT) budget on a cash-outlay basis. Cloud computing, along with other factors like consumerization and greater business involvement in tech spending, will bring major changes to the structure and distribution of ICT budgets. Yet most CIOs have not focused on what will happen to their MOOSE budgets as a result. Starting with Forrester's Forrsights data on the breakdown of the 2012 US ICT budget by category, activity, and function, we project how the mix of spending will change by 2016. Our analysis shows that these tech innovations will actually decrease the new project proportion of the ICT budget and increase MOOSE's share. As a result, CIOs will need to focus more attention on sourcing and vendor management to keep their MOOSE budgets under control in the coming years.

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Table of Contents

  • MOOSE Continues To Dominate ICT Budgets
  • The Forces Reshaping The ICT Budget Through 2016
  • What ICT Budgets And MOOSE Will Look Like In 2016
  • RECOMMENDATIONS

  • MOOSE Management Will Become Even More Important
  • WHAT IT MEANS

  • MOOSE Is Evolving As Cloud Changes The Tech Environment
  • Supplemental Material
  • Related Research Documents

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