Nearly Two-Thirds of IT Infrastructure Expected to be Outsourced by 2020, According to Savvis' Global Study (U.K.)
By Savvis Inc., PRNEMonday, June 7, 2010
Global independent research predicts major shift toward managed services
LONDON, June 8, 2010 - An annual study commissioned by Savvis, Inc. (Nasdaq: SVVS), a global
leader in cloud infrastructure and hosted IT solutions for enterprises,
predicts the number of companies that outsource their IT infrastructure will
increase globally from 17 percent today to 64 percent in 2020.
In April, independent research firm Vanson Bourne surveyed more than 600
IT and business decision makers from mid to large enterprises and public
sector organisations based in the United States, United Kingdom and
Singapore.
Sixty-one percent of respondents believe managing IT in-house provides no
competitive advantage and has to stop.
"With the rise in acceptance of outsourcing within the IT industry and
the related economies of scale that accompany the managed services model,
organisations are finding it difficult to justify owning their own IT
infrastructures," said Bryan Doerr, chief technology officer at Savvis.
The trend away from in-house IT infrastructure can be seen in the study
results:
United Kingdom:
- In-house IT infrastructure is predicted to drop from 90 percent today to just 23 percent in 2020. - Lower total cost of infrastructure ownership is seen by 41 percent as the main reason for moving to cloud-based IT. - Confidence continues to grow, with 96 percent of organisations stating they are as or more confident in cloud being enterprise ready now than in 2009. - Fifty-one percent of public sector IT knows huge savings can be made from cloud but central Government guidelines make it difficult to switch.
In looking at 2010, organisations cited cost savings (58 percent) and
growing revenue (54 percent) as their top strategic priorities. The biggest
issue facing organisations is having to doing more with less budget (54
percent).
When asked what factors prevent their organisations from outsourcing all
elements of their IT infrastructure, survey respondents cited company culture
(43 percent) and sunk costs where IT assets are already paid for and owned
(37 percent).
A copy of the Rising to the Challenge IT decision maker report can be
found at savvis.itleadership.info/.
About Savvis
Savvis, Inc. (NASDAQ: SVVS) is a global leader in cloud infrastructure
and hosted IT solutions for enterprises. More than 2,500 unique clients,
including 30 of the top 100 companies in the Fortune 500, use Savvis to
reduce capital expense, improve service levels and harness the latest
advances in cloud computing. For more information, please visit savvis.co.uk.
About the survey
This independent survey was commissioned by Savvis and carried out with
456 chief information officers, chief technology officers, IT directors and
heads of IT and 202 chief executive officers, managing directors, directors
and senior managers of global mid-size and large organisations based in the
United Kingdom, Singapore and United States. The research was conducted by
Vanson Bourne, a research-based technology marketing consultancy. This year's
study also surveyed 202 senior business decision makers from U.K.- and
U.S.-based organisations. Both elements used an online fieldwork methodology,
and all research carried out by Vanson Bourne adheres to the latest MRS Code
of Conduct. Demographic detailing both respondent communities includes
industry sector, country in which the respondents were based and size of
business.
Elizabeth Shumacker, International Marketing Director, +44-(0)-118-322-6378, elizabeth.shumacker at savvis.net, or Justin Lopinot, Public Relations Manager, +1-314-628-7053, justin.lopinot at savvis.net, or Jennifer Heisserer, Investor Relations, +1-314-628-7397, jennifer.heisserer at savvis.net, all of Savvis, Inc.; or Sue Lynn Goh of Ogilvy PR Worldwide (UK), +44-(0)207-309-1016, savvisuk at uk.ogilvypr.com
Tags: England, June 8, London, Savvis Inc.