On-site IT shrinks in favor of hosting: Microsoft Hosting and Cloud Study

On-site IT shrinks in favor of hosting: Microsoft Hosting and Cloud Study

Most businesses will likely reduce investment in data centers and other on-site IT by three percent over the next couple of years, in favor of hosted IT solutions.  That’s according to the Microsoft Hosting and Cloud Study 2014: Hosting and Cloud Go Mainstream.

Microsoft Hosting and Cloud Study: Hosting and Cloud Go Mainstream

Survey respondents reported that current data center spending accounts for about 41 percent of the IT budget and that number will be reduced to about 38 percent over the next two years.

While security remains a top concern about cloud computing, the embrace of cloud solutions like hosted ERP will likely lead to improved security.  Not only because hosting partners’ first mission is protecting data and compliance, and cloud solutions usually show improved security over on-site systems, but also because a well-developed cloud strategy will help stop users deploying cloud solutions on the rogue, without IT oversight.  About 80 percent of business users use cloud applications without the approval or knowledge of corporate IT, according to a recent report by McAfee.

Security notwithstanding, the trend toward hosted and cloud deployment among businesses is progressing, with SaaS a favorite model among the smallest businesses (less than 100 employees) as well as companies with more than 500 employees, according to the Microsoft Hosting and Cloud Study.  With hosted solution like Microsoft Dynamics AX, users get the power of an enterprise solution without the headache and expense of on site deployment.

Here are a few more interesting stats on hosting services from the Microsoft Hosting and Cloud Study:

  • 70% use website hosting services
  • 64% use cloud storage
  • 64% use hosted backup and restore services
  • 56% use dedicated server hosting services
  • 54% use database hosting services
  • 45% use disaster recovery services
  • 41% use virtual machines on shared or multi-tenant servers
  • 35% use hosted virtual desktop
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