Cloud infrastructure landscape changes outsourcing outlook

As businesses recognize the challenges associated with managing complex infrastructure and data centers on their own, decision-makers are realizing they do not need to traverse this path alone. Rather than exhaust financial and human resources maintaining outdated and expensive hardware, enterprises are outsourcing solutions to third-party environments.

Gartner noted that the global IT outsourcing market is expected to increase 2.8 percent in 2013 to reach $288 billion. Specific changes within this landscape, however, are causing analysts to put its growth at a slower rate than usual. These variances include new IT outsourcing delivery models, including cloud computing, and the unpredictable economic condition.

"Enterprise buyers pursuing hybrid IT strategies and small and midsize business buyers adopting Infrastructure as a Service are key drivers in cloud and data center service segment growth rates," said Bryan Britz, research vice president at Gartner. "The global market size for data center outsourcing is in gradual decline due to workloads moving to IaaS and to [infrastructure utility services] exceeding the net-new adoption of data center outsourcing."

The cloud infrastructure market in particular is transforming how companies view their ability to use data centers to their advantage, allowing companies to leverage the most innovative technologies on the planet for a less expensive price.

The new cloud order
A report by Synergy Research Group revealed that the market revenues for Infrastructure and Platform as a Service grow at an average rate of 65 percent each year, suggesting there is a monumental change in the way organizations view their IT architectures.

"We are in the early days of a profound shift in the data center market towards cloud infrastructure services, which presents extremely exciting growth opportunities for emerging cloud providers and traditional service providers the world over," said Jeremy Duke, chief analyst and founder of Synergy Research Group.

Gartner analysts believe the ongoing transition to new IT environments will continue to have an impact on the way companies view mission-critical operations and the ways in which employees can carry out crucial objectives. As the cloud infrastructure market continues to evolve, the outsourcing landscape will change as the cloud introduces new and exciting service delivery models that promise to reduce costs, improve efficiency and provide decision-makers with anytime access to the most sophisticated application and network services on the market.

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