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Fear of cloud servers fading fast among UK firms

Research shows traditionally risk-averse UK firms are being persuaded by the benefits of co-location, with more than 20% of servers now outsourced

More than a fifth of UK datacentre servers are now outsourced and the proportion is expected to reach 28% by 2...

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Research from analyst DCD Intelligence has found that while worldwide growth in server outsourcing was initially fuelled by emerging economies, more mature markets such as the UK are increasingly being persuaded by the benefits.

“Outsourcing was traditionally viewed in the UK as having considerable risk attached, particularly when it came to releasing control of mission-critical assets," said 
Nicola Hayes, managing director of DCD Intelligence. 

"But today companies are increasingly realising that co-location solves many of their challenges around capacity planning and reducing capital expenditure, as well as offering additional network access.”

Worldwide, a quarter of servers are outsourced, compared with just 7% in 2007. DCD’s research shows the UK is quickly catching up with the global average.  

Even in markets such as financial services, traditionally the most wary about outsourcing datacentre servers, firms now view the practice as a workable alternative to building their own facilities, according to 
Hayes.

“Financial institutions today look at outsourcing as a viable way of reducing their datacentre footprint, reducing operational expenditure and increasing efficiencies,” she said.

To reflect the changing nature of the UK datacentre industry, a dedicated stream on outsourcing has been added to the agenda at this year's DatacenterDynamics Converged conference, which will take place at London’s Excel Centre on 20 and 21 November. Conference sessions will examine the implications for various sectors, including finance, government and co-location providers.

“The key considerations will vary depending on the vertical in question," said Hayes. 

"Companies need to understand the specific impact for their sector on how outsourcing datacentre servers affects operational management and pricing; the legal implications; as well as how to select and manage an appropriate portfolio of providers."

Hayes's opening session will give an overview of the trends driving the growth in server outsourcing, as well as presenting new insights from the latest DCD intelligence research on the topic.

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