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Survey Says Data Centers Outsource to Deal with Capacity Issues

by: Sarah Joson

Friday, May 13, 2011 | Outsourcing News |

Data Center Outsourcing Survey

An increasing number of large companies are starting to outsource to the cloud due to a potential congestion of in-house data centers, and to avert additional construction costs.

The first ever data annual assessment from Uptime Institute shows that 36% of large companies which took part in the survey are likely to exhaust their data center storage within the coming months.

The survey also exhibited that companies boost their capacity through server consolidation and power and cooling equipment upgrades, though 29% have opted to move workload to the cloud. It’s actually a new feat because according to Matt Stansberry, a research analyst from the Uptime Institute, large companies are known to have always kept IT operations in-house. He also said “This is a trend we've been seeing," referring to the occurrence that more companies are now outsourcing IT operations.

According to a different study commissioned by Digital Realty Trust, a company that builds and operates data centers for third parties, 60% of the respondents who are looking to expand data center capacities in 2011 opted to lease space from a third party rather than construct their own.

Michael Foust, Digital Realty's CEO, said "Increasingly, enterprises appear to be favoring the lease model, as fewer companies are choosing to go it alone on these capital-intensive projects.”

A total of 525 large data center operators participated in Uptime’s assessment process last March and April, and included "typically conservative organizations" like banks, insurance companies, collocation providers, and government agencies. On the other hand, Digital Realty's study had 300 IT executives directly involved in data center decision-making at large corporations in North America.


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