Managed networks a growing trend

Managed networks a growing trend

Outsourced IT services such as managed networks will continue to be in demand, experts have predicted.

Analyst Philbert Shih of Structure Research recently told a conference of hosting providers that their industry is set to continue to grow. He said that there is currently a “perfect storm” of events that will continue to generate demand for outsourced IT such as managed networks, co-location and cloud computing.

Shih was speaking at the annual HostingCon 2012 event in Boston. PC Advisor quotes him as saying, "This is a snowball rolling down a slow, gradual hill.”

Shih said that he expects the demand for co-location services to continue to grow by as much as 27 per cent annually, whilst he predicts that cloud computing will grow by 50 per cent a year.

Shih noted that outsourced IT can save businesses money and also make it easier for them to manage increasingly complex technology. He said that cloud computing and managed networks allow companies to be more agile and scale their resources up and down as necessary. He added that competition has never been stronger, resulting in better options for customers.

However, Shih said that the main obstacle for businesses comes from within – they still need to convince senior executives that outsourcing is he way to go. He said, “The fundamental battle is still convincing the CIO that outsourcing is a better path compared to insourcing,"

The hosting conference included a wide range of events and speakers, covering issues related to managed hosting, such as the launch of Iv6, competition from big-name companies and the OpenStack open source cloud deployment project.

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