Survey finds that resources bundled with management and security services make up nearly half of infrastructure and application services spending
According to 451 Research's Voice of the Enterprise: Hosting and Cloud Managed Services study, enterprises currently spend 28% of their total enterprise IT budgets on hosting and cloud services. Next year, that number is expected to climb to 34%, indicating a growing reliance on external sources of infrastructure, application, management and security services.
Although hosting and cloud providers frequently position themselves as primarily providers of infrastructure, 451 Research finds that just 31% of spending goes towards infrastructure services while nearly 70% of enterprise budgets for hosting and cloud is being spent on other services, specifically:
* 42% on Application Services
* 14% on Managed Services
* 9% on Security Services
* 5% on Professional Services for cloud enablement
The research reveals that a significant portion of hosting and cloud services spending is on unmanaged or self-managed infrastructure or application services. Nearly half--44% of infrastructure services spending and 49% of application services spending--is for products that are bundled with additional managed or security services.
"The markets for unmanaged IaaS and SaaS are dominated by large, hyper-scale vendors. However, this spending trend indicates there is an appetite for the type of bundled services a broader market of managed service providers are well positioned to deliver. A strong opportunity exists for service providers offering a diversified set of hosting and cloud services that includes infrastructure and application hosting, as well...