Data center services’ reduction to empower hybrid computing model

The development of cloud computing and “industrialized” services, like virtualization and other automation technologies, and the reduction of conventional data center outsourcing demonstrate a massive shift toward a hybrid computing model, in accordance to a new study from Gartner.

"As the claim for agility and flexibility grows, agencies will shift toward more industrialized, less-tailored options," stated D.D. Mishra, research director at Gartner. "Agencies that adopt hybrid infrastructure will optimize charges and increase efficiency. Although, it increases the complexity of selecting the right toolset to deliver end-to-end services in a multi-sourced environment."

Gartner assumes that by the year of 2020, 90% of agencies will adopt hybrid computing model management capabilities, which involve both cloud and on-premise computing services.

The traditional data center outsourcing (DCO) market is shrinking. Worldwide conventional DCO spending is hoped to decline from $55.1 billion in 2016 to $45.2 billion in the year of 2020, the report said. Cloud computing services, on the other hand, are forecast to increase from $23.3 billion in the year of 2016 to reach $68.4 billion in 2020.

Spending on colocation and hosting is also anticipated to increase, from $53.9 billion in 2016 to $74.5 billion in the year of 2020. Infrastructure utility services (IUS) will grow from $21.3 billion in 2016 to $37 billion in the year of 2020, and storage-as-a-service will increase from $1.7 billion in 2016 to $2.7 billion in 2020.

In 2016, conventional worldwide DCO and IUS together represented 49% of the $154 billion total data center services market worldwide, containing DCO/IUS, hosting and cloud infrastructure as a service (IaaS).

Gartner hopes this to tilt further toward cloud IaaS and hosting, and by 2020, DCO/IUS will be about 35% of the expected $228 billion worldwide data center services market.