European businesses plan to spend around a third of their IT budgets on cloud software over the next 18 months, according to new research.

The study by software firm VMware looked at IT leaders involved in the purchase process for cloud systems across seven countries, as well as the UK. It found that 31% of IT budgets are allocated to cloud software, an increase of 5% since the last study in 2010.

Chief cloud technologist at VMware EMEA, Joe Baguley said: “Cloud is no longer just about cost cutting and peripheral applications. We’re seeing a significant shift in the way enterprises think about their IT infrastructures, and cloud is at the absolute heart of that."