Currently, only 10 to 15 percent of all business data storage is outsourced in Europe, and similar numbers are present in the United States. While industrial server production is swinging slowly to shipping more virtual servers than standard in-house storage options, wide acceptance of outsourcing data storage has yet to catch on, and there are a number of reasons for this.
The first is cost. Almost every IT department has seen downsizing in recent years, losing both people and overall budget in order to help companies balance their books and get back on financial track. Instead of making the move to a managed outside provider, companies are choosing to either adopt short-term physical server solutions such as improving efficiency at a local level or building their own virtual storage environments. While building a VPS housing location is initially more expensive than long-term outsourcing, many companies argue that they will save money over time. What is often not taken into consideration is the continued maintenance and security required for even virtual servers located in an office environment and how companies will continue to spend money on VPS upgrades and management software in order to stay competitive.
In addition, companies want to see flexibility, something they often believe they will be able to better achieve on their own. By using their own in-house managed servers, many believe that they will be able to cater to their own needs more effectively than relying on an outsourced provider who has to maintain multiple virtual servers.
Outsourced virtual service providers have not yet been in business long enough to prove their worth to a large portion of the market, but as band-aid physical server solutions fail and companies see better ways of managing IT dollars, their use will only increase.
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