Savvis: 98% of S’pore enterprises to outsource infrastructure by 2017
By Asia Cloud Forum editors 19-Sep-2012
Within the next five years, 98% of Singapore's IT decision makers will outsource the majority of their IT infrastructure and will opt to move their infrastructure to the cloud, according to an annual independent research study commissioned by Savvis, a CenturyLink company.
Vanson Bourne, an international research firm, surveyed 550 senior IT decision makers from enterprise organizations across Singapore, Hong Kong, Japan, United States, United Kingdom and Germany.
Singapore IT leaders revealed that their top three reasons for increasing the percentage of outsourced infrastructure are the need to choose operating expenditure over capital expenditure (58%), eliminate dependence on legacy infrastructures (56%), and gain transparency and control over cost models (52%).
The study, in its fourth year, indicates that Singapore is leading the trend toward IT infrastructure outsourcing. Organizations that currently have the majority of their IT infrastructure in-house are in the minority (42%), compared to 56% globally.
For 92% of Singapore respondents, the CIO makes the final decision to outsource infrastructure. However, 94% of Singapore respondents answered that the vice president or the director of Infrastructure influences the final decision to outsource infrastructure.
"In the past, the CIO was expected to focus on minimizing costs. Today, they are expected to play a more strategic role by creating value for their business," said Mark Smith, managing director of Savvis Asia. "Companies like Savvis can be a valuable partner to CIOs by helping to support IT infrastructure needs while providing them with the confidence to focus on their core business."
The study also indicates that:
- The three key issues that Singapore IT leaders face include gaining efficiencies throughout the company (56%), increasing collaboration across the office (46%) and focusing resources on activities that will provide a competitive advantage (30%)
- The ability to scale up and down computer, storage and bandwidth consumption to manage fluctuating demand is the top benefit of outsourcing IT infrastructure, according to 70% of Singapore respondents
- Of the IT infrastructure that are being outsourced, the top two include non-mission critical applications (76%) and storage (70%)
- Contractual obligations (54%) and company culture (28%) are the two main reasons that prevent Singapore enterprises from outsourcing
Meanwhile, Savvis will provide dual-site hosting capabilities to financial services clients through an arrangement with Singapore Exchange (SGX).
Utilizing data centers operated by Savvis and SGX in Singapore, the arrangement provides financial services clients with a single point of contact for a suite of Singapore-based IT infrastructure solutions that includes managed hosting, colocation and network services, as well as ultra-low latency connectivity to market services.