Outsourced Clouds Gaining Momentum

 
 
By Karen A. Frenkel  |  Posted 11-11-2013 Email Print this article Print
 
 
 
 
 
 
 
 

In its fifth survey on outsourcing trends, Savvis, a CenturyLink company in the cloud infrastructure and hosted IT solutions space, projects a reversal in IT infrastructure. Today, 65 percent of IT infrastructure resides in in-house environments, but 70 percent of organizations will outsource their infrastructure by 2018. ("Infrastructure" refers to co-location, managed hosting, outsourced cloud, or a hybrid combination of these.) "The next five years will bring a dramatic shift in the way organizations approach IT," says Savvis President Jeff Von Deylen. "Cloud is part of the picture but it's not the whole picture. [Businesses] will adopt a strategic mix of colocation, managed hosting and cloud services." Savvis commissioned international research firm Vanson Bourne to conduct the survey among 550 IT decision-makers in the U.S., Canada, U.K., Germany, Japan, Hong Kong and Singapore. Vanson Bourne is an independent specialist in market research for the technology sector. For more about the Savvis report, "Global IT Trends: IT Outsourcing Fuels Business Growth," click here.

 
 
 
  • IT Infrastructure to Shift

    Today, only 5% of enterprises depend on outsourced cloud services, but 62% of respondents will outsource their IT infrastructures in two years.
    IT Infrastructure to Shift
  • Private Cloud Versus Outsourced Cloud

    In five years, 69% will do so. That percent will remain constant until the end of the decade.
    Private Cloud Versus Outsourced Cloud
  • What's Attractive About Outsourcing?

    42% cite cost reductions and 36% see improved quality of service from outsourcing compared to in-house solutions.
    What's Attractive About Outsourcing?
  • Cloud Security Is Better

    32% of respondents say security is a top reason for adopting the cloud.
    Cloud Security Is Better
  • Three Top New Challenges in the Cloud

    34% of respondents say a shortage of IT staff and skills will continue to be a key issue for the next 12 months., 29% cite keeping their infrastructure secure., 28% are motivated by having to do more with a smaller budget.
    Three Top New Challenges in the Cloud
  • Firms That Don't Outsource Have Lower Revenues

    45% of organizations with low revenue growth still have in-house owned infrastructures.
    Firms That Don't Outsource Have Lower Revenues
  • Firms That Outsource Have Higher Revenues

    Firms with the majority of their IT in co-location (29%), in-house private cloud (27%), or managed hosting (22%) will be more prevalent in the high revenue growth categories over the next 12 months.
    Firms That Outsource Have Higher Revenues
  • How Much Does Outsourcing Save?

    On average, current cost savings for firms already outsourcing are 11%. Within two years that will grow to 19%, and within five years, to 24%.
    How Much Does Outsourcing Save?
  • In-House Elements That can be Outsourced

    45% of respondents say non-mission-critical applications currently managed in-house should be outsourced., 41% name data center facilities., 39% say storage.
    In-House Elements That can be Outsourced
  • Top Three Concerns

    Security: 52%, Control: 43%, Company culture: 34%
    Top Three Concerns
  • Three Most Popular Types of Cloud

    Private cloud storage: 54%, Private cloud Infrastructure-as-a-Service: 40%, Public cloud Infrastructure-as-a-Service: 30%
    Three Most Popular Types of Cloud
  • Top Criteria for Choosing an Outsource Cloud Provider

    One hundred percent-proven data center uptime: 49%, Security of data center: 47%, Value for money: 37%
    Top Criteria for Choosing an Outsource Cloud Provider
 
 
 
 
 
Karen A. Frenkel writes about technology and science, innovation, and entrepreneurs and lives in New York City.

 
 
 
 
 
 

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