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Off-premise is the future for IT: Uptime Institute survey

Uptime Institute has published the results of the 2016 Uptime Institute Data Center Industry Survey. The sixth annual survey provides an overview of the major trends shaping IT infrastructure delivery and strategy.

According to the survey, 50 percent of senior enterprise IT executives expect the majority of IT workloads to reside off-premise in cloud or colocation sites in the future. Of those respondents, 70 survey expect that shift to occur by 2020, and 23 survey expect the shift will happen by next year.

Uptime Institute Survey findings since 2013 have shown that the majority of respondents report some percentage of their IT portfolio resides outside of their enterprise-owned data centers / centres, either in the cloud or some form of off-premise computing.  But the annual Data Center Industry Survey takes the pulse of the legacy, on-premise enterprise IT and data center operations teams, many of which are not motivated or inclined to move to cloud.  Previous results probably underrepresented the shift to cloud computing, as business units deployed in the cloud without IT Operations or Data Center personnel involvement.

Enterprise related findings include:

  • Many legacy enterprise IT departments are shrinking, due to budget pressures, IT hardware advances and the outsourcing of workloads to cloud and colocation providers.
  • For the last five years, approximately 50 percent of enterprise IT departments have reported flat or shrinking of overall budgets (combined spend for on-premise technology infrastructure of IT and data center facilities). This figure has remained steady in each Uptime Institute survey. Some enterprise IT organizations are receiving modest budget increases, but fewer than 10 percent are realizing significant growth. 
  • 55 percent of enterprise-managed server footprints are flat or shrinking.
  • Colocation providers had experienced tremendous growth in the last five years, but shrinking enterprise IT deployments are now impacting capital project cycles across the board.

Colocation:

  • 50 percent of respondents are satisfied or very satisfied with their primary colocation provider.
  • 7 percent said they were dissatisfied or very dissatisfied.
  • In 2015, enterprise IT organizations reported slightly more outages in their enterprise-owned sites over a two-year period than their colocation service providers.
  • 40 percent of enterprise respondents are paying more for colocation contracts than initially planned.
  • Nearly a third of respondents have experienced an outage at a colocation vendor site.
  • Over 60 percent said the penalty clause in their service level agreement (SLA) would not adequately offset the cost of that outage to the business.

The sixth annual Uptime Institute Data Center Industry Survey was conducted via email in February, 2016 and includes global responses from over 1,000 data center operators and IT practitioners.

https://uptimeinstitute.com


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