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Guest Blog: Telehouse - Was COVID-19 the final nail in the coffin for on-premise IT?
To mark 30 years since Telehouse Europe launched its first data centre in London, Telehouse North, we commissioned independent research to delve into the minds of IT decision-makers and find out their opinions on the infrastructure challenges and opportunities they are likely to face, alongside their priorities over the upcoming decade. One aspect was certainly clear - the pandemic’s impact on IT systems and IT infrastructure, with many organisations expressing uncertainty on whether they are effectively set up to survive in what has become an increasingly uncertain future.
As many as one in five (20%) of UK IT decision-makers believed that they did not have the right infrastructure in place to respond quickly to the impact brought about by the pandemic and the resultant shift to remote working. This uncertainty raises questions for businesses in terms of how their data is stored and managed, particularly as levels of data continue to grow rapidly and provide further insight to organisations.
An overview of colocation
Insights from our research lead us to expect that the take up of colocation services, where crucial business data is stored in physically secure data centres, will see an accelerated shift over the next decade, with the pandemic creating the need for employees to access business data quickly and securely from a remote location. In addition, there is increased need for data to be secure from potential cyber-attacks and businesses are looking to benefit from fast connectivity.
Our research showed that 38% of IT decision-makers were considering this solution due to their new and established remote workforce. In addition, a study conducted by Grand View Research, Inc revealed that the global data centre colocation market is expected to reach $104.77 billion by 2027, expanding at a CAGR of 12.9% from 2020 to 2027.
Our report also revealed that many organisations have not yet adopted colocation as part of their IT strategies, with 64% of IT decision-makers reporting that more than 25% of their IT infrastructure is still kept on-premise. The colocation landscape however is ripe for change, with nearly one-third (32%) of organisations planning to shift from on-premise to colocation and a further 16% planning to change the location of their data centre.
While many IT decision-makers may be currently apprehensive about moving data from their premises, this looks set to transform by 2030, particularly as aging IT infrastructure creates more of an issue for organisations that are looking to scale and grow flexibly. 29% of IT decision-makers reported the need to update legacy infrastructure as a key challenge.
Battling the limitations of on-premise
The status quo of on-premise IT infrastructures has yet to fade for many organisations, but it’s clear that the events of 2020 have left businesses looking to adopt new technologies to facilitate the new way of working, meaning on-premise is no longer viable for many businesses. Colocation provides a host of benefits to organisations, including flexibility, scalability and increased resilience, but the plethora of options on the market can leave organisations confused about where to turn.
Telehouse provides reliable and secure colocation services, enabling organisations to accelerate their speed-to-market and create new business opportunities through fast, efficient and secure interconnections and enhanced connectivity. With economic uncertainty set to continue, gaining a competitive advantage in the market via colocation is ever more crucial for business prosperity.
Colocation however extends beyond the benefits of facilitating new business opportunities and optimising workforces. A growing focus is on organisations to be environmentally responsible in their operations, with 30% of IT decision-makers looking to reduce the impact of their on-premise IT infrastructure on the planet over the course of the next decade.
Telehouse is committed to sustainability and we are proud that the entirety of our London Docklands data centres retrieves electricity from only 100% renewable energy sources. Organisations that opt for our colocation arrangements can be confident that they are contributing to environmental best practices by working with a partner that is adopting international ISO standards in Environment and Energy Management (ISO 14001:2015 & ISO 50001:2011).
To discover more about the potential shift from on-premise to colocation and the range of challenges and opportunities that IT decision-makers are likely to face in the run-up to 2030, download the full Telehouse research report here.
This article was originally authored by Mark Pestridge, Senior Director Customer Experience at Telehouse.