Companies adopt cloud infrastructure to boost agility, survey says

As the ongoing economic crisis continues to put pressure on companies to save costs and reserve resources, decision-makers are looking toward innovative technologies for help. In many cases, the cloud is the answer.

A new study by Savvis revealed that roughly three in five IT and business executives believe that maintaining an in-house infrastructure drives expenses and wastes valuable resources, up from only 38 percent who thought so in 2010. Approximately 60 percent of survey respondents agree that implementing an outsourced infrastructure has become a priority.

"This study reveals a significant shift in the way organizations analyze and approach IT services," said Bill Fathers, president of Savvis. "IT departments are now looking to strengthen collaboration, efficiency and competitive agility - and they're turning to secure, outsourced environments and cloud computing to help meet their objectives."

How the IT landscape is changing
The survey, which polled 550 IT and business decision-makers around the world, found that slightly more than 25 percent of corporate IT infrastructures are currently outsourced. This will likely increase in the coming years, however, as respondents said they believe about 40 percent of IT services will be outsourced within five years.

One of the primary reasons for switching to a cloud infrastructure is the technology's ability to increase agility, according to about half of respondents. This, among other demands, is driving momentum for cloud computing, as approximately 85 percent of decision-makers said their company is currently using the cloud for storage, analytics and other mission-critical applications, up from only 39 percent in 2010.

"We continue to see changing views on why organizations make the move to outsourced managed services," Fathers said. "As the business focus moves from IT budgets to enriching core competencies, we expect strategic ITO solutions to move to the forefront of decision-maker priorities."

A separate report by MarketsandMarkets confirmed the growing cloud computing industry, forecasting the market for hosted services to expand at a compound annual growth rate of more than 26 percent through 2015, at which time it will generate more than $121 billion in revenue, up from only slightly more than $37 billion in 2010.

As cloud technologies continue to be adopted, they will evolve into even more cost-effective and efficient solutions, allowing companies to reserve resources and reduce expenses during today's tough economy.

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