Posts Tagged ‘Savvis’

Managing IT in-house has no value, say IT leaders

June 8th, 2010

The number of companies outsourcing their IT infrastructure will increase globally from 17 per cent today to 64 per cent in 2020, according to a report from hosted IT solutions provider Savvis.

In the UK, in-house IT infrastructures are predicted to drop from 90 per cent today to just 23 per cent in 2020.

This is a reflection of the fact that the majority of IT managers believe there is no competitive advantage to managing IT in-house, according to the report.

Savvis commissioned research firm Vanson Bourne to survey more than 600 IT and business decision makers based in the US, UK and Singapore.

In the US, in-house IT infrastructures are expected to drop from 82 per cent to 49 per cent by 2020 and in Singapore, they will drop from 62 per cent to 38 per cent.

When the respondents were asked what factors prevent their organisations from outsourcing all their IT infrastructure, they cited company culture (43 per cent) and prior investments in IT assets (37 per cent).

“With the rise in acceptance of outsourcing, and the related economies of scale that accompany the managed services model, businesses are finding it difficult to justify owning their own IT infrastructures,” said Bryan Doerr, chief technology officer at Savvis.

Source:http://www.computing.co.uk/computing/news/2264333/managing-house-value-stop-say

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Nearly Two-Thirds of IT Infrastructure expected to be outsourced by 2020, according to savvis’ global study

June 8th, 2010

An annual study commissioned by Savvis, Inc. , a global leader in cloud infrastructure and hosted IT solutions for enterprises, predicts the number of companies that outsource their IT infrastructure will increase globally from 17 percent today to 64 percent in 2020.

Independent research firm Vanson Bourne in April surveyed more than 600 IT and business decision makers from mid to large enterprises and public sector organizations based in the United States, United Kingdom and Singapore.

Sixty-one percent of respondents believe managing IT in-house provides no competitive advantage and has to stop.
“With the rise in acceptance of outsourcing within the IT industry, and the related economies of scale that accompany the managed services model, businesses are finding it difficult to justify owning their own IT infrastructures,” said Bryan Doerr, chief technology officer at Savvis.

The trend away from in-house IT infrastructure can be seen in the study results:

United States: In-house IT infrastructure is expected to drop from 82 percent today to 49 percent in 2020.
United Kingdom: In-house IT infrastructure is predicted to drop from 90 percent today to just 23 percent in 2020.
Singapore: IT infrastructure being controlled in-house is expected to drop from 62 percent today to 38 percent in 2020.

In looking at 2010, organizations cited cost savings (58 percent) and growing revenue (54 percent) as their top strategic priorities. The biggest issue organizations face concerns doing more with less budget (54 percent).

When asked what factors prevent their organizations from outsourcing all elements of their IT infrastructure, survey respondents cited company culture (43 percent) and sunk costs in which IT assets already are paid for and owned (37 percent).

Source:http://www.prnewswire.com/news-releases/nearly-two-thirds-of-it-infrastructure-expected-to-be-outsourced-by-2020-according-to-savvis-global-study-95837954.html

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Savvis nearly doubles cloud revenues

February 5th, 2010

Savvis Inc. has a message for anyone doubting the cloud computing market: Check out our cloud revenues. Although still a small portion of Savvis’s business pie, cloud revenues at the company nearly doubled in 2009 — getting a boost from new customers and existing media industry clients. Here’s a closer look at Savvis’ cloud revenue trends.

Company officials speaking during the company’s Q4 earnings call said Savvis generated $7.4 million in cloud revenue last year, a 93 percent increase over 2008. Cloud revenue in Q4 was $2.5 million, a 25 percent boost quarter-over-quarter and a 105 percent increase year-over-year.

Granted, Savvis’ cloud business represents a tiny portion — less than 1 percent — of the company’s overall sales. Savvis reported total 2009 revenue of $874.4 million. But Savvis executives see the addressable cloud market growing rapidly, as companies looking to reduce IT costs and boost flexibility fuel demand. The company cited Gartner Inc. numbers that peg the addressable market $1.2 billion in 2009, expanding to $4.9 billion in 2012.

“We are seeing enterprises accelerate their adoption of cloud-based solutions,” said
Bill Fathers, Savvis senior vice president and global head of sales and marketing.

One-third of Savvis’ 2009 cloud business came from new customers, with the consumer brands, healthcare, software, human resources, and financial services segments represented. Among existing customers, the media industry showed the most interest in moving to the cloud, according to Fathers.

Media companies, in general, have become prime MSP customers. The spiky, unpredictable nature of media Web sites lends itself to the dynamic resource allocation of cloud computing.

Source:http://www.mspmentor.net/2010/02/04/savvis-nearly-doubles-cloud-revenues/

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