Corporate Datacenter Trends
Facility Spending Jumps as IT Infrastructure Spending Declines

 


About This Report: A February survey of 1,344 members of the 451 Global Digital Infrastructure Alliance focused on key enterprise datacenter trends – including overall facilities spending, capacity issues, top priorities, and a close-up look at colocation spending.

 

Datacenter Facilities Spending – Next 90 Days: 30% of respondents say their organization’s datacenter facility spending will increase over the next 90 days – an 8-pt jump from the previous survey. Only 11% say spending will decrease, 1-pt improved.

Distribution of IT and Facilities Budget: Staffing/Labor Costs (34%) tops the IT budget list, with IT Infrastructure Hardware (17%) and Software and Applications (17%) tied for second, followed by Datacenters and Facilities (16%).

Top Datacenter Priorities: Improving Existing IT Asset Utilization (60%; up 9-pts) is the leading datacenter priority. Datacenter Consolidation (28%) is a distant second, followed by Aligning Datacenter Processes Across IT and Facilities Groups (26%).

Colocation Spending: One-in-four (26%) say their organization’s spending on colocation will increase over the next 90 days, compared to 9% who say colo spending will decrease.

Provider Selection Criteria: Security Capabilities (8.7) ranks as the most important criteria when selecting a colo provider, followed closely by Redundancy of the Facility (8.5), Quality of Service Level Agreements (SLAs) (8.4), and Latency of Network Connectivity to/from the Datacenter (8.4).

Datacenter Facilities Spending – Next 90 Days

Three-in-ten respondents (30%) say their organization’s datacenter facility spending will increase over the next 90 days (6% Significant Increase; 24% Slight) – an 8-pt jump from the previous survey in November 2015.

Only 11% say spending will decrease (2% Significant Decrease; 9% Slight) – 1-pt improved from previously.

Datacenter Facilities vs. IT Infrastructure Spending: Next 90 Days

How does spending on datacenter facilities compare with IT infrastructure spending (i.e., spending on servers, networking equipment, and other IT hardware)?

Infrastructure spending growth is quite similar to that of datacenter facilities – with 33% of respondents reporting an increase for the next 90 days and 14% a decrease.

However, we note that overall IT infrastructure spending has declined from a year ago.

Distribution of IT and Facilities Budget. Respondents were asked how their overall IT and facilities budgets are distributed across specific categories. Staffing/Labor Costs (34%) tops the list, but IT Infrastructure Hardware (17%) and Software and Applications (17%) are tied for second, followed by Datacenters and Facilities (16%).

Budget Spending Changes. On average, respondents expect their organization’s Cloud Services spending to increase 5.8% over the next 90 days. Storage (4.6%) is the second largest increase, followed by Networking (4.5%) and Software and Applications (4.5%).

Top Datacenter Priorities

Respondents were asked about their highest priority datacenter projects and Improving Existing IT Asset Utilization (60%; up 9 pts) is on top. Datacenter Consolidation (28%; down 2 pts) is a distant second, followed by Aligning Datacenter Processes Across IT and Facilities Groups (26%; down 2 pts).

Organizations were also asked about their most important IT environment goal over the next 90 days. Nearly 1-in-4 respondents (23%) want to Improve Reliability and Availability (23%), and another 23% said Respond Faster to Business Needs (23%). Decrease Costs (19%) was also a top goal.

Datacenter Capacity Issues

What will organizations do if they run out of floor space or power capacity at their datacenter facilities?

A total of 38% say they would Consolidate IT Infrastructure to Accommodate Power and/or Space Availability (38%). Another one-in-three (33%) would Utilize Off-Premises Public Cloud Providers (IaaS, PaaS, SaaS, Hosted Private Cloud) and one-in-ten (30%) would Expand an Existing Datacenter.

A Closer Look at Colocation Spending

Colocation sites are typically used as supplementary or complementary IT deployment locations. Among organizations that use a colo provider, 79% also have their own facility and just 21% do not (i.e., use colocation and/or cloud services).

Colocation Spending. One-in-four (26%) say their organization’s spending on colocation will increase over the next 90 days versus just 9% who say spending will decrease.

Colo Provider Selection Criteria. Respondents were asked to rate which criteria are most importance when selecting a colocation provider.

Security Capabilities (8.7) ranks as the most important criteria, followed closely by Redundancy of the Facility (8.5), Quality of Service Level Agreements (SLAs) (8.4), and Latency of Network Connectivity to/from the Datacenter (8.4).

Additional Colo Services. Customers report they are most interested in receiving 24/7 Onsite Technical Staff (7.2) from their colocation provider, followed by Choice of Bandwidth/Network Providers at the Facility (7.0), and Availability of Industry Compliance Certifications (7.0).

You can access a PDF version of this 451 Alliance report here.

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