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Cloud Services as Strategy for Data Center Companies and Outsourcing

June 14
09:45 2010

Web Hosting NewsLONDON – BroadGroup, the IT and telecommunications specialist, has recently released a new data center report revealing that hybrid cloud is seen as the next major opportunity where efficiencies can be gained by using public cloud for non-critical applications. The report also highlights how Private Cloud enterprise adoption will accelerate over the next five years, and how it will boost the opportunity for third party data center outsourcing.

The report, Competing in the clouds: emerging strategies for enterprise data centres, written by Marion Howard Healy, demonstrates that Private Cloud will be the fastest growing segment in the enterprise market. However, migrating to cloud services represents a new way of operating, and will require a change in mindset by enterprise IT leaders because ‘IT as a Service’ introduces very different business and operational models.

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“The signs are that a complex and interesting market structure will evolve over time. A significantly higher proportion of enterprise data center space will be outsourced by 2015. In our view this could be as much as 35 percent by 2015,” Marion Howard Healy, the report author and a Senior Consultant at BroadGroup, said.

Most companies will be able to cope with growing data demands using their existing infrastructure. However, as enterprises are confronted by the priority to upgrade or migrate to Private Cloud to secure greater business agility plus continued strong growth in data volumes will mean that data centers will be the principal beneficiary of the migration, with space doubling from its current level over the next five years.

According to the report, Hybrid clouds will evolve as the next big opportunity and that by 2020, for the majority of enterprises, as little as 10 percent of applications will remain in private clouds. These applications will be core or critical to the business. Non-critical applications will be provisioned via public cloud computing services or via virtual private clouds on public service infrastructures. There will be exceptions particularly in finance and central government sectors.

This data center report has proved to be the most comprehensive assessment yet of how Private Cloud will interact with enterprises and data center outsourcing. Due to cloud market development being “kaleidoscopic” there is much in play, and much to play for in short and medium term investment and IT decisions.

To purchase a copy of the Competing in the clouds: emerging strategies for enterprise data centres report or for more information, check out www.datacentres.com/marketreports/Default.aspx

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