London, UK – 4 November 2014: Independent research commissioned by Zenium Technology Partners (www.zeniumtechnology.com) has found that there is mounting pressure on the data center to meet changing business requirements through the adoption of new technology, ongoing evolution and optimisation of data center infrastructure. It has driven 70% of companies to allocate at least some of their overall IT budget to focus on modernisation initiatives. However, just 21% of the respondents went on to add that they could definitely scale in response to demand from the business.
It also appears that rising concerns about how best to meet fluctuating needs for storage and computing resources is driving interest in outsourcing as the solution to address these issues. Indeed 51% of respondents said that their IT infrastructure would be considerably improved if they chose to outsource data center requirements.
The research - entitled ‘Motivation to Modernise’ – found that among those with budget allocated, on average only 24% have specifically set aside funds for data center modernisation. Most companies (56%) have assigned 30% or less of the budgets to this area and worryingly 22% have only assigned 10% or less.
The modest budgets assigned purely to modernisation may explain in part why 60% of IT professionals were only prepared to go as far as saying that they could ‘possibly’ scale to support their business needs within the next 3-5 years. Unfortunately 16% were more negative, saying that their data center will probably NOT be scalable over this time frame and another 2% were definite that what they currently have in place is not appropriate for their future business needs.
Interestingly, the report also cited that confidence in the role of outsourcing as a potential solution for scalability and modernisation is high. 94% of the senior IT professionals questioned felt that outsourcing their data center requirements would improve their company’s IT infrastructure to some degree. 13% believe it would improve it radically, and another 51% said it would be considerably improved. Those with current experience of outsourcing (99%) think that outsourcing improves a company’s IT infrastructure to some degree, compared to those who do not outsource (79%). This represents a massive endorsement for outsourcing as a ‘tried and tested’ solution for a variety of short and long-term data center issues.
“It’s no surprise that outsourcing continues to be adopted as a cost-effective solution to many infrastructure issues. However increased pressure on IT professionals to deliver the agility the business requires means that those offering outsourced data centre services are going to have to step up and compete,” said Franek Sodzawiczny, CEO at Zenium Technology Partners.
Indeed, the 2014 State of Outsourcing* study conducted by outsourcing analyst firm HfS Research in conjunction with KPMG indicated that customers expect service providers to help them standardise, automate or transform their processes within the next two years, or risk ejection.
“Basic service provision and a focus on the tactical is simply not adequate. Clients now want strategic advice from leaders in the field, access to new technologies and improved analytics in order to deliver the transformation required by the digital economy,” added Sodzawiczny.
*Executive Report: The State of Services and Outsourcing in 2014, KPMG and HfS Research, June 2014
About the Research
This report was commissioned by Zenium and details quantitative research conducted with IT professionals in large organisations across the UK and Turkey.
For this survey, a total of 210 interviews were collected in the UK and Turkey with senior IT professionals across a wide variety of industry sectors and in large organisations with 250 or more employees. All respondents confirmed prior to interview that they were an IT professional with responsibility for the company’s data centers from an operational and / or strategic perspective. They also confirmed their level of seniority: 36% are at CIO / director level and 64% are at senior manager level.
The interviews were conducted by Dynamic Markets Limited using an online, global research panel between 31st July and 14th August 2014. Before and during the interviews, respondents were not aware that Zenium had commissioned the research.
About Zenium Technology Partners
Zenium Technology Partners are data center industry pioneers. In the last 15 years, the Zenium management team has raised over $2Bn in debt and equity and has conceived, designed and delivered over 400,000 square metres of raised floor space, securing over 100 individual customer agreements.
The Zenium Data Centers portfolio – which currently comprises the Istanbul One data center in Turkey and Frankfurt One data center in Germany – marks Zenium’s commitment to the development of innovative and ground breaking facilities in both established and emerging markets.
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