Predictions for an all-virtualized IT space have gone unfulfilled, but the number of companies that are using managed storage providers is on the rise, according to the International Data Corporation (IDC). In the final three months of 2010, revenues across the globe at the factory level increased by 15.3% when compared with the same period in 2009, and for the entirety of 2010 revenues increased by 11.4% across the board.
What this means is that while virtualization isn’t the only game available for companies to play, managed hosting of a broad variety of types is becoming more common. This is in part due to the recent IT market downswing that accompanied the economic downturn, forcing businesses to look outside of their own walls to get the kind of service and price they needed, and in part due to the fact that VPS options are rapidly becoming more popular as companies realize their benefits. With the ability to limit or even eliminate the need to pay for physical storage media and power costs, and with more choices on the market of providers that can offer storage machines that have great power and performance but cost a business far less than their own server purchases, many companies are considering a switch or have moved part of their data already to a VPS environment.
Many CEOs and CIOs have taken that stance that those businesses that do not get on board with VPS technology will be left behind as the cloud evolves, and Gartner predicts a significant increase in the number of VPS users by the end of 2012. This means that managed servers will continue to gain ground as companies see the value in not having to pay for physical, on-site storage.