End Of Life of Enterprise-owned Data Center?

Worldwide data center budgets are growing overall, but the vast majority of budget growth is occurring in the third party data center providers market, reflecting a shift in spending away from enterprise-owned data centers toward outsourced options, according to the third annual survey of Uptime Institute, a division of The 451 Group.

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Matt Stansberry, Director of Content Uptime Institute

The results of Uptime Institute’s global data center industry survey show that 77% of third-party data center providers are receiving large (10% or more) year-over-year budget increases this year, versus just 47% of enterprise data centers.

“This isn’t the end of the enterprise-owned data center, but it should serve as a wakeup call,” said Matt Stansberry, Uptime Institute Director of Content and Publications. “Going forward, enterprise data center 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.”

Other key findings of the Uptime Institute data center industry survey include:

  • Self-reported PUE improved from 1.89 in 2012 to 1.65 in 2013. The percentage of companies pursuing green data center certifications like US Green Building Council’s LEED program or Energy Star grew from 48% in 2012 to 58% in 2013.
  • Enterprise public cloud adoption rose from 10% in 2012 to 17% in 2013.
  • Reported DCIM (Data Center Infrastructure Management) software adoption is 38% among respondents, with the major driver being capacity planning.
  • Prefab modular data center growth has stalled out, and adoption is still in the single digits.

To collect data, Uptime Institute has gathered responses via email (spring 2013) from 1,000 data center facilities operators, IT managers and senior executives from around the globe. As in previous surveys, the sample is heavily represented by large data center operators in North America with a growing number of respondents from Europe, Asia and Latin America.

Complimentary access to the full report is available for download with registration: http://uptimeinstitute.com/2013-survey-results.