Despite the tremendous advancements in enterprise cloud computing in recent times, on-premises IT Infrastructure continues to play a key role in forming organizations’ IT and digital strategies.
Companies worldwide are investing more in storage, data centers, and networking infrastructure, with a focus on increasing bandwidth, enhancing network security, building WLANs, and adding additional servers.
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Findings of the Global Survey
The 2022 State of Infrastructure study examines many parameters, such as the organizational response to the ever-increasing demand for storing and managing data, drivers and inhibitors of infrastructure modernization, and investment in infrastructure enhancement.
The study that surveyed around 150 IT leaders and practitioners involved in the purchase or management of infrastructure systems from diverse industries and organizations of varying sizes concluded:
1) Increased Spend on IT Infrastructure
Most organizations (63 percent) want to increase their annual IT infrastructure spending. While a quarter of the respondents plan on an increase of more than 10 percent, one-fifth of them intend to spend 5-10 percent, and 18 percent limit their spending to less than 5 percent.
On the other hand, 30 percent of the leaders surveyed do not expect any change in their organizational spending, while 5 percent expect a decline in their IT infrastructure investment.
Along with data storage, the rise in workforce demand and support for new business opportunities are other key factors driving the emphasis on infrastructure management.
2) Network Security, the Prime Priority
Organizations consider security the primary factor governing their investments in networking technologies. Around three-fifths of the survey respondents considered security one of their top three investment priorities.
Increasing bandwidth with high-speed Ethernet and upgrades to network hardware or OS are the other two major priorities, with 29 percent and 21 percent, respectively.
3) Data Centers to Dominate
Despite the advent of the cloud, data centers’ importance has not diminished. Over 30 percent of the survey respondents planned to spend over half their IT budget on data center facilities, operations, and hardware. Data center servers are the top priority for 44 percent of the organizations.
4) Converged and Hyper-converged Infrastructure for Speedier Deployment
As organizations look towards streamlining their IT operations, Converged Infrastructure (CI) and Hyper-converged Infrastructure (HCI) are gaining prominence. While CI combines the four core components of a data center – compute, storage, networking, and server virtualization – into a single, optimized computing package, HCI enables tighter integration between the components through software.
65 percent of the respondents reported that they are either using or considering integrated technologies to ensure simplified management and speedier deployment.
5) Mission Critical Wireless Networks
Owing to their significance in infrastructure management, organizations continue to focus on building WLANs to meet the growing demand.
Wireless access points, with 47 percent, and wireless/mobile security, with 39 percent, lead the list of technologies the respondents plan to invest in.
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Growing Preference for Consumption-based Pricing Models
Gartner predicts a rising demand for Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) over the next few years. Organizations are likely to look to manage a hybrid combination of on-premises and off-premises infrastructures, leveraging both cloud and non-cloud architectures.
IaaS and PaaS are the highest-growth segments in cloud and infrastructure services, with a 73 percent year-on-year growth in 2022.
Reduced risk, increased flexibility, and proper capital management are some benefits prompting companies to move from the traditional CAPEX to OPEX offered by the ‘as a service’ models.
Key Challenges to Infrastructure Modernization
Several factors inhibit enterprises’ efforts to modernize their infrastructure. While the cost of implementation, lack of staff expertise, and security concerns are the most critical ones, the complexity of implementation and lack of resources to evaluate new solutions are also listed. Non-compelling value propositions and the immaturity of products in the market are other key challenges.
The Way Forward
Don’t hesitate to contact Veritis at connect@veritis.com for more insights and responses to queries on the IT Infrastructure Landscape.
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