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Enterprise IT Report on the UK and Germany: How do the European IT Power Players Stack Up Heading into 2013?

December 13, 2012

LONDON, December 13, 2012 /PRNewswire/ –

Research commissioned by Savvis (http://www.savvis.co.uk), a global leader in
cloud infrastructure and managed virtual hosting solutions, has revealed a dramatic rise
in CIOs planning to put the majority of their infrastructure in the cloud over the next
ten years. Still in its relative infancy, Europe has the chance to be at the forefront of
cloud computing adoption and development.

In Europe, the UK is set to lead Germany in this trend, with rises over the decade
from 2 to 45 per cent in the UK compared with 4 to 33 per cent in Germany. In 2012, cloud
computing is currently being utilised by a higher percentage of IT decision makers in
German organisations (86 per cent) than in their UK counterparts (80 per cent). IT
decision makers in Germany are more likely to be using a hybrid cloud whereas public cloud
is most popular amongst UK organisations.

The study also revealed that 45 per cent of IT leaders in the UK believe that they
will have to do more with a reduced budget over the next twelve months. This was cited as
their highest constraint and was well above the global average (28 per cent). The number
one constraint cited by CIOs in Germany for the next year is a shortage of IT staff (31
per cent).

One of the most interesting findings from the research is that at least one third of
organisations worldwide are not outsourcing applications that they feel should be
outsourced. IT leaders believe savings can be made by reducing owned infrastructure and
outsourcing to professional services.

CIOs that are currently outsourcing around a quarter of their IT infrastructure
anticipate saving 24 percent (UK) and 25 per cent (Germany). The key reason German IT
leaders believe they need to increase outsourced infrastructure is to deal with their
shortage of IT human resources.

Adopting a ‘pay as you go’ model of outsourcing is seen as a significant cost saving
by a high proportion of UK (39 per cent) and German (32 per cent) adopters. Known as a
“utility-based model”, the use of IT services flexes and adapts to business needs. Rather
than paying a fixed upfront CapEx (capital expenditure) or longterm contract fee, the cost
varies with the amount of services used.

CIOs in more mature markets also expect outsourcing to help them differentiate their
organisation. UK IT leaders are much more likely to be driven by the need to increase IT
agility to address changing business needs, than their counterparts in Germany (50 per
cent versus 34 per cent). Access to specialist skills scored highly, suggesting a desire
for flexibility to focus on core company work and specialist projects.

As is typical in technology adoption, where larger organisations lead smaller
organisations, the rate of outsourcing going into 2013 has slowed down for those companies
with a global turnover of $50-$100 billion. Mid-market European companies seeking agility
are now driving the outsourcing trend. CIOs from the largest organisations in Germany
predicted an increase of six per cent in outsourcing over the next five years, compared to
13 per cent among those with lower revenues. The UK forecasted a similar trend, with the
largest organisations predicting an additional 11 per cent of infrastructure will be
outsourced in five years’ time, compared to 14 per cent among smaller organisations.

Alarmingly, just under half of European IT execs regret IT purchases when spending
their IT Pounds and Euros in the last year, at a rate of 47 per cent in the UK and 48 per
cent in Germany. 44 per cent of IT leaders in the UK said they would consider an
outsourced infrastructure for new products or services they deploy, compared to 53 per
cent in Germany.

The findings suggest that recently purchased IT infrastructure on large scales is a
key reason why bigger companies hold on to their personal IT assets. CIOs confirmed that
contractual obligations are the main barrier to outsourcing, whereas in previous years,
company culture was the most common inhibitor. The exception is the UK, where company
culture has been the number one barrier to outsourcing for the past three years, combined
with an unwillingness to relinquish control.

In conclusion, both the UK and Germany are well positioned to lead Enterprise IT in
2013. As new technologies are introduced on a global playing field, it will be the
individual companies that deliver operational efficiencies who make the most progression
in the next 12 months. Through the advice and feedback of IT decision makers surveyed in
this report, the best approach needs to be tailored to the individual needs of your
organisation, identifying the required bespoke levels of cloud adoption and outsourced
infrastructure models to increase your competitive advantage.

About the Research

To download a copy of the full research, please visit:

http://www.savvis.co.uk/en-gb/solutions/it-outsourcing/pages/2012-global-it-leadership-report.aspx

This independent survey was commissioned by Savvis and conducted with 550 leaders of
global large enterprises based in six leading IT enterprise countries. The research was
conducted by Vanson Bourne, a research based technology marketing consultancy offering
clients analysis and advice based on incisive, rigorous research into their market
environment. The research used a combination of online fieldwork methodology and telephone
interviewing. All research carried out by Vanson Bourne adheres to the latest MRS Code of
Conduct. Demographic detailing respondent communities include industry sector, country in
which the respondents were based, and size of business.

About Savvis

Savvis, a CenturyLink company, is a global leader in cloud infrastructure and hosted
IT solutions for enterprises. Nearly 2,500 unique clients, including more than 30 of the
top 100 companies in the Fortune 500, use Savvis to reduce capital expense, improve
service levels and harness the latest advances in cloud computing.

Follow @SavvisEMEA on Twitter for the latest company news, blogs and industry
opinions.

SOURCE Savvis


Source: PR Newswire