A recent study revealed that 70% of all IT infrastructures will be outsourced within the next five years.
The study, commissioned by Savvis and conducted by Vanson Bourne, examined IT infrastructure trends among 550 IT decision makers across industries ranging from finance to retail in the United States, Canada, United Kingdom, Germany, Japan, Hong Kong and Singapore.
Today, 65% of IT infrastructures are in-house environments, but the study showed a shift to hybrid cloud services as enterprises look to cut costs and improve the quality of their services. According to the study, within two years colocation will be the infrastructure of choice, but within five years outsourced managed services will dominate.
The latest Research and Markets report reflects the same trend in managed services as Vanson Bourne and the market forecast and analysis report projects that the managed services market will grow from $142.75 billion to $256.05 billion in 2018.
“The next five years will bring a dramatic shift in the way organizations approach IT,” said Jeff Von Deylen, president of Savvis, in a statement. “Clearly, cloud is part of the picture but it’s not the whole picture. As businesses grow and move more IT infrastructure to outsourcing providers, they will adopt a strategic mix of colocation, managed-hosting and cloud services.”
The most popular cloud service is cloud storage, with 54% of respondents citing the use of the service. Public and private cloud Infrastructure as a Service (IaaS) were the second and third most popular services among enterprises. According to the survey, these services were popular because they were cost-effective and provided safe environments to test and develop applications.
The services most respondents want to outsource are non-mission-critical applications. Enterprises are less likely to outsource more sensitive services, such as supply chain management, finance and telecom, according to the study.
While the study indicates trends are in favor of cloud providers, enterprises won’t readily outsource to services. The Vanson Bourne study revealed major barriers that prevent enterprises from outsourcing. These barriers include concerns with security and a lack of control over the infrastructure once they make the switch. Providers should work to break down these barriers and act as a guide for enterprises.
When taking the plunge into outsourced infrastructures, enterprises want providers with established track records in data center uptime and IT infrastructure experience. Enterprises also want providers with stringent cloud security control, cutting edge technology, global scale and flexible contracts.
Providers need to cater to enterprises’ requirements and help them assess and perform cloud migrations from in-house environments in order to make IT infrastructure outsourcing successful.