International market research and consulting firm Infonetics Research says corporate concerns about security are driving up spending on data centres and hosting services, with a significant increase expected over the next three years.
Infonetics says in its latest market research study, User and Service Provider Plans for Data Centres and Hosting, that corporate security concerns are driving spending up across the board.
The report says organisations worldwide will increase their spending on hosting services by 91% between now and 2007, from $3.3 billion to $6.4 billion, and by 27% on data centre products, from $7.3 billion to $9.3 billion.
Combined, data centre product and service expenditures are expected to grow 47%, from $10.6 billion to $15.6 billion between 2003 and 2007.
"There is continued strong demand for hosting services among organisations of all sizes, despite Cable & Wireless` and Sprint`s announcements that they are exiting the US hosting market," says lead analyst Neil Osipuk.
"Respondents participating in our study plan to increase their expenditures on hosting services by more than 50% over the next two years. This is good news for the hosting service providers who have not joined the exodus of providers who are crawling, limping, or sprinting away from the market."
Osipuk says the top four reasons respondents want to build their own data centres are for security, performance, availability and control. The top reasons for respondents buying hosting services from a service provider are reliability and uptime, security, performance and service and support.
The report finds that large organisations are far more security-conscious than are medium or small companies: among the large, the least-used security method, in-line intrusion detection, has been deployed by 40% of respondents.
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