Multinational corporations not keen on outsourced cloud services

By December 06, 2011
Keywords : Smart city, America

With the permanent growth and development of their IT systems, data management has become a major topic for multinational corporations. A survey conducted by CoreNet Global and Newmark Knight Frank sheds light on how companies’ handle their data.

Recently, CoreNet Global and Newmark Knight Frank surveyed top executives from 30 multinational corporations about how they manage data for their company, and what infrastructures they use. It turns out their biggest concern still remains security, which pushes them to invest on self-managed data centers rather than outsourced cloud services.

Corporate data centers still more popular than cloud services.

Today, cloud computing as a service is one of the fastest growing market in the B2B digital economy. But despite the multiplication of “cloud computing as a service” offers, multinational companies tend to invest more in corporate data centers, and have plans to expand them in the long term. 71% of multinational companies “outsource at least some of their data center computing to the Cloud”, but very few multinational companies - namely 6% - currently resort to cloud solutions to host their entire data system. 24% do not use the cloud at all.

Multinationals prefer to manage their data centers internally

The reason for this, as Bryan Loewen, Senior Managing Director – Data Centers, for Newmark Knight Frank Global Corporate Services, puts it in a press release is that "Data centers are the digital-age equivalent of the engine room driving today's globally networked corporate enterprise (…) The reliable, secure, continuous and efficient operation of data centers has thus become a function vital to the profitability of many companies in today's and tomorrow's worlds of e-commerce." Multinational companies actually prefer to manage their data centers internally to ensure reliability, continuousness and efficient operations.

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