Enterprises in the United Kingdom are embracing colocation in the data center market as a way to enable multi-cloud strategies, according to new research by ISG Research. It would also allow them to deal with concerns about data sovereignty, security and privacy regulations.
Many enterprises in the UK would be focused on colocation now because it allows them to locate and manage data closer to their cloud, network and security functions. The full findings of this study can be found in a new report published by Information Services Group (ISG) (Nasdaq: III), a technology research and advisory firm. UK enterprises are increasingly viewing colocation providers as an extension of their businesses. They would provide them with services offerings such as tracking provisioning status, interacting with customer support and monitoring system health in real-time.
About 60 percent of UK enterprise workloads still reside on-premises and many in private data centers operated by internal staff, the report says.
“In an effort to save valuable time, money and space, many large enterprises will look to move in-house IT operations to managed colocation facilities or sell their data centers and lease the space they need to operate,” said Barry Matthews, partner and leader, ISG North Europe.
IT Outsourcing Deals
Meanwhile, with the U.K. facing the dual challenges of Brexit and the COVID-19 pandemic, the report sees UK enterprises moving cautiously with new IT projects. Due to Brexit, companies are not circulating large requests for proposal and request for information. At the same time, many are concerned about a potential shortage of niche tech skills. The perceived skills gap, along with continuous demand for innovation, could eventually lead to more IT outsourcing deals.
On the pandemic front, many UK business continue to catch up with automating processes they wish they had automated sooner, the ISG report says. The pandemic “will be the deciding factor for many UK companies to move toward digitization and automate their work and business processes,” added Matthews. “This will lower the threshold for outsourcing in the future.”
Software-Defined Data Centers, Hyperconverged
In addition, the ISG report sees significant adoption of software-defined data centers and hyperconverged infrastructure for remote and branch offices in the UK. Enterprises that want to reduce power, space and cooling costs are exploring a move to hyperconverged infrastructure. And, all the major hyperconverged market leaders are embracing hybrid cloud offerings and multi-cloud deployments according to the ISG report.
The ‘2020 ISG Provider Lens Next-Gen Private/Hybrid Cloud – Data Center Services & Solutions Report for the U.K.’ evaluates the capabilities of 91 providers across seven quadrants. These include: Managed Services for Large Accounts, Managed Services for the Midmarket, and Managed Hosting for Large Accounts. And also: Managed Hosting for the Midmarket, Colocation Services, Data Center Security Products and Hyperconverged Systems.
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