Enterprise spend on third party datacentre increasing


Budgets for datacentres are increasing worldwide as enterprises shift resources away from their own datacentres to third party providers, new research has shown.

The report from the the Uptime Institute, a division of research outfit the 451 Group, found that datacentre budgets for external providers were increasing with 77 per cent of third-party data centre providers receiving large (10 per cent or more) year-over-year budget increases this year, compared with just 47 per cent of enterprise data centres.

Large enterprises are almost twice as likely to implement public clouds than smaller enterprises.

"Data centre budgets are growing overall, but the vast majority of growth is occurring in the third party providers, reflecting a shift in spending away from enterprise-owned data centres and toward outsourced options," said Matt Stansberry, Uptime Institute director of content and publications.

"This isn't the end of the enterprise-owned data centre, but it should serve as a wakeup call. Going forward, enterprise data centre managers will need to be able to collect cost and performance data, and articulate their value to the business in order to compete with third-party offerings," he said.

The report, which surveyed 1,000 providers across the world, also found that worldwide adoption of public cloud computing is increasing, up to 17 per cent this year from 10 per cent in 2012. It said that large enterprises are almost twice as likely to implement public clouds than smaller enterprises.

The survey also found that private cloud adoption was on the slide with 44 per cent deploying private clouds this year, compared with 49 per cent in 2012.

"This seems to suggest that the companies who could make use of a private cloud platform have made the investment, and companies on the fence are either going to public cloud or walking away from the hype cycle," the report said.

Rene Millman

Rene Millman is a freelance writer and broadcaster who covers cybersecurity, AI, IoT, and the cloud. He also works as a contributing analyst at GigaOm and has previously worked as an analyst for Gartner covering the infrastructure market. He has made numerous television appearances to give his views and expertise on technology trends and companies that affect and shape our lives. You can follow Rene Millman on Twitter.