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Cloud Computing: Customers Experience Buyer's Remorse with their Infrastructure Purchases
A study by research group Savvis highlights differences businesses in different countries are to accept outsourcing IT operations to the cloud. In many cases. acceptance is tied to cultural differences.
For example, globally, businesses currently are outsourcing one quarter of their IT infrastructure and that’s expected to increase to more than 40 percent within five years. And 60 percent of companies now say that it is important to emphasize outsourced infrastructure over on-premise. But when looked at in more detail locally, there is a wide variation about how different countries are approaching the outsourcing of their infrastructure.
The report found, for example, that in Japan 78 percent of businesses prefer to keep their IT services fully in house, while in the US only 56 percent of businesses expressed that view. And when businesses were asked whether they regretted having made any of their current on-premise IT equipment, more than half said that they did. This was highest in the US at 66 percent and much lower at 34 percent in Hong Kong and Singapore.
Despite the global differences, more than half of IT decision makers at companies in the United States, Japan and the United Kingdom say that they recognize that outsourcing of IT infrastructure provides the benefit of increased agility. Of those businesses that aren’t outsourcing IT infrastructure, 42 percent said part of the reason they don’t or can’t is because of current contractual obligations. In 2010 only 39 percent of organizations were using cloud computing, but today the number of organizations relying on some piece of cloud computing in their total IT solution has grown to 85 percent.
