Outsourced Clouds Gaining Momentum | CIO Insight

Outsourced Clouds Gaining Momentum

Nov 11, 2013
2 minute read

Outsourced Clouds Gaining Momentu

IT Infrastructure to ShiftIT 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.

Private Cloud Versus Outsourced CloudPrivate Cloud Versus Outsourced Cloud

In five years, 69% will do so. That percent will remain constant until the end of the decade.

What's Attractive About Outsourcing?What’s Attractive About Outsourcing?

42% cite cost reductions and 36% see improved quality of service from outsourcing compared to in-house solutions.

Cloud Security Is BetterCloud Security Is Better

32% of respondents say security is a top reason for adopting the cloud.

Three Top New Challenges in the CloudThree 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.

Firms That Don't Outsource Have Lower RevenuesFirms That Don’t Outsource Have Lower Revenues

45% of organizations with low revenue growth still have in-house owned infrastructures.

Firms That Outsource Have Higher RevenuesFirms 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.

How Much Does Outsourcing Save?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%.

In-House Elements That can be OutsourcedIn-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.

Top Three ConcernsTop Three Concerns

Security: 52%, Control: 43%, Company culture: 34%

Three Most Popular Types of CloudThree Most Popular Types of Cloud

Private cloud storage: 54%, Private cloud Infrastructure-as-a-Service: 40%, Public cloud Infrastructure-as-a-Service: 30%

Top Criteria for Choosing an Outsource Cloud ProviderTop Criteria for Choosing an Outsource Cloud Provider

One hundred percent-proven data center uptime: 49%, Security of data center: 47%, Value for money: 37%

Karen A. Frenkel

Karen A. Frenkel is a contributor to CIO Insight. She covers cybersecurity topics such as digital transformation, vulnerabilities, phishing, malware, and information governance.

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