Enterprise IT Decision Makers Expect 70% of Global IT Infrastructure to be Outsourced by 2018

managed-hosting-services-colocationCost savings together with improved quality of service and infrastructure scalability will drive Enterprises to outsource nearly 70 percent of their IT infrastructure by 2018, according to new research from Savvis. The company commissioned international research firm Vanson Bourne to conduct the survey among 550 IT decision makers worldwide.

This study projects a reversal to today’s situation, in which 65% of IT infrastructure would reside in in-house data center environments, and suggests most organizations will arrive at outsourced cloud through hybrid approaches to colocation and managed hosting service models.

The survey was conducted among 550 IT decision makers in the United States, Canada, United Kingdom, Germany, Japan, Hong Kong and Singapore. The study offers global insight from key industries, including finance, media and entertainment, retail, healthcare, software and automotive.

Managed hosting: within 5 years

While the top benefit of IT outsourcing remains cost reduction, cited by 42 percent of IT leaders, ‘improved quality of service’ and ‘infrastructure scalability and flexibility’ also rank high on the list of advantages, with each indicated ‘important’ by more than 35 percent of survey responders.

Nearly 90 percent of respondents say they use some type of cloud service today, with more than half turning to cloud for storage and email applications. Slightly less than half of IT leaders employ cloud for intranet, website and micro-site applications.

After non-mission-critical applications, the next-most popular elements of infrastructure that IT leaders plan to outsource include data center facilities, storage and content management applications.

Other highlights from Savvis’ global survey indicate:

  • Though in-house IT infrastructure models lead in popularity today, by percentage of infrastructure, the near future brings a hybrid shift, as colocation becomes the environment of choice in two years, managed hosting services take the lead in five years and cloud hosting eclipses all forms shortly thereafter.
  • This hybrid hosting shift correlates with IT leader expectations for outsourcing partners: Nearly 70 percent of respondents agree their ISP needs to have a range of offerings to meet requirements at all stages of the buying and application lifecycle, and more than 65 percent agree an optimal cloud provider should own the underlying network.

Savvis, a CenturyLink company, delivers cloud, colocation and managed-hosting services over advanced networks. As the third largest telecommunications company in the United States, CenturyLink is an S&P 500 company.