Security drives data centre spending

Security ranks as enterprises’ greatest concern, according to Infonetics Research. In fact, so great is the concern that it is driving up spending on hosting services and data centres.

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By  Zoe Moleshead Published  July 30, 2003

Security ranks as enterprises’ greatest concern, according to Infonetics Research. In fact, so great is the concern that it is driving up spending on hosting services and data centres. A study by the research group reports that the hosting market will grow by 91% between 2003 and 2007, from US$3.3 billion to US$6.4 billion respectively.

Additionally, growth in the data centre space will increase by 27% over the same period, moving from US$7.3 billion to US$9.3 billion.

“Respondents participating in our study plan to increase their expenditures on hosting services by more than 50% over the next two years. This is good news for the hosting service providers who have not joined the exodus of providers who are crawling, limping or sprinting away from the market,” says Neil Osipuk, lead analyst of the Infonetics Research study.

The group’s research revealed that security, performance and availability were the top four reasons that respondents wanted to build their own data centres. While reliability/uptime, security, performance and service/support ranked highest in the hosting services space.

The study also highlighted the greater importance of security to large organisations as opposed to small to medium sized businesses (SMBs).

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