Changing Trends in Data Center Procurement

Changing Trends in Data Center Procurement

Data Center ProcurementThe days have gone when IT firms used to partner with a single strategic vendor for end-to-end data services. These days, expectations from IT related decision makers are very high. They are expected to make decisions that take into account the quality of technology, cost, as well as account for capabilities, all in the context of delivering business solutions. In pursuit of meeting the objectives, modern data centers are embracing a huge variety of support and Data Center Procurement alternatives, which were almost disregarded in the past, including multi-vendor environment, pre-owned equipment, and third party maintenance. But, the question is how prevalent are these approaches? What  roles are the procurement and IT  departments taking in affecting these changes? The answer lies ahead.

What are the Key Findings?

  • Last two years have seen a huge growth in maintenance alternatives and pre-owned equipment.
  • 92% of users use third-party maintenance, pre-owned equipment, and multi-vendor infrastructure.
  • 60% IT companies have increased the use of multi-vendor infrastructure, third-party maintenance or pre-owned equipment in 2015, and around 54% have planned to amp it up in 2016.
  • There has been an increase in maintenance alternatives and pre-owned equipment due to unfavorable circumstances. New technologies enabling flexible architectures, availability of better alternatives and the need for negotiating power – all these have driven the growth in the last few years.
  • Most of the equipment purchasers want choice and flexibility – 90% think they can reap benefits in the third-party maintenance of data center equipment including optimized spending, vendor flexibility, and lower costs.
  • 96% of people can see the advantages in retaining vendor flexibility, minimizing the risk of vendor lock-in and optimized spending.
  • Around 42% of IT, firms are of the opinion that the procurement processes are getting better and about 14% think they are getting worse. IT decision makers value those staff, who bring in positive changes in financial situation and technology.unified-infrastructure_data center procurement

Omnipresence of Non-traditional Data Center Procurement Environments

The data center procurement environments of today have moved away from the conventional single-vendor approach, which persuades them to switch to a single OEM for support and purchasing. Survey says that almost all the IT companies (around 90%) have reported the use of third party maintenance, multi-vendor approach and pre-owned equipment in their data centers.

Non-traditional approaches are still used extensively. Around 53% (more than half) use the old or pre-used equipment. Two out of three use third party maintenance alternatives, while the use of multi-vendor equipment is quite common and was reported to be close to 85%. Different types of equipment require altogether different approach. For instance, networking equipment is most likely to go for a third party maintenance than for a multi-vendor approach.

Poor Purchase Decisions and Outside Influences

Even when there are reports of IT decision makers taking the wrong steps, statistics indicate that the situation is improving slowly. Almost all IT decision makers at some point make purchasing decisions for their data centers due to certain influencing reasons like – vendor requirements, internal policies, and purchasing procedures. As per a survey, some IT giants revamped their equipment, even before it was required based on vendor requirement (55%) and internal policies (52%). More than half, around 56% opine that the standard purchasing procedure has prompted them to make an IT purchase, even though it was not a right decision for the budget and technology needs of the business.

How 2016 will be a Room for More Growth?

Companies have started embracing the non-traditional approach to data center procurement support and purchasing. However, there is still some room for more. More than half (55%) still make use of single-vendor approach for many components in their data centers, with the networking equipment scoring high, while servers and storage faring low. The enormous level of growth in support and purchasing alternatives is evident in all areas. Third party maintenance and multi-vendor approaches will see a big jump in 2016, with Europe witnessing the highest growth in multivendor environments.

 

Tracking the Most Impactful Data Management Trends Continued

Tracking the Most Impactful Data Management Trends Continued

In our previous blog, we discussed some of the dramatic shifts that have come in the field of data management and are driving business decisions. We will continue to track a few more of these trends in this discussion too:

shutterstockdata_management

Storage becomes an area of focus for enterprises

Until a few years back, storage was probably the most overlooked areas of enterprise management, with disk drives running in the back of data centers. But today, as more & more enterprises shape their infrastructures’ capabilities, they are dealing with ever expanding data stores. Everything from machine-generated data to that pouring in from social media is being utilized for business analytics that help in understanding the consumer base better and thus drive some prominent business decisions.

In fact, many enterprises are working on the concept of ‘data lakes’ wherein the data can be stored in its rawest form and accessed as and when needed. In the coming future, we will see ‘smart’ storage and not the trend of simply adding more disk capacity to store loads & loads of data. Tiered storage, data compression and information lifecycle management are some of the smart storage solutions which are already being put to use by the leading organizations.

data-storage2

More emphasis on automation of data management

In most of the organizations, data professionals witness their resources and time being squeezed between managing the huge & diverse data stores in restricted budgets and meeting increased user demands at the same time. This calls for a need to automate the data storage processes so that the database professionals do not need to spend a major share of their time in managing database life cycles. With more & more enterprises entering cloud environments, enterprise-wide testing becomes all the more crucial. To take care of everything from additional hardware to network costs, licensing costs, administration costs and added complexity, automation is a time, resource and cost saving alternative.

Data Managers to initiate drives for securing corporate data

NEXT-GLS-Data-Management-2

With more & more instances of data breaches coming into limelight, the CIOs and top executives have become more concerned about the need for securing their sensitive corporate data. Data governance issues have become more crucial owing to the rise in Big Data and cloud as both of these require complex integration, accessibility and multi-device compatibility. This scenario calls for an initiative on part of the database administrators and security professionals to work in harmony to ensure maximum data privacy, regulatory compliance and protection against insider threats. There has been a heightened awareness about the imperative need for locking down data environments and budgetary support for business data security and this is likely to remain so in the future as well.

We see this year as one representing new opportunities for expanding data management practices to meet the ever-growing needs of enterprises that have become totally or partially digital. Streamlined data management practices will definitely result in meeting the business goals faster and reaching new markets more promptly.