Pandemic destroys on-premises data centers

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The latest victim of the pandemic is quite surprising: the old internal data centers.

In a survey of 1,600 IT professionals by networking specialist Aryaka, more than half (51%) of respondents said they plan to shut down all of their on-premises data centers in the next 24 months, and 27% said they would at least eliminate some of their installations – all in favor of cloud computing.

The change is believed to have been caused by the rapid introduction of hybrid working models, which have driven companies to adopt cloud and delivered applications as a service.

“As you move resources to the cloud, it becomes more and more inefficient for all those branch offices and remote employees to go back to, as I would call it, traditional on-premises data centers,” Dave Ginsburg , vice president of product marketing at Aryaka, said Data Center Knowledge.

At the same time, the pandemic has increased the importance of wide area network (WAN) technology and ssecured aaccess sservice andCEO (SASE) – a new term coined by Gartner to encompass most of the infrastructure services needed for remote working.

“This creates the need for very dynamic bandwidth reallocation as employees move from a remote site to an onsite site, whether at headquarters or in branch offices. There is flexibility in this movement; and therefore, the network must also offer the same level of flexibility,” Ginsburg said.

A bad time for on-premises, a good time for Microsoft Teams

6 of Aryakaand The annual State Of The WAN report paints a picture of a sector in transition. The new hybrid world of work comes with different priorities and a different approach to IT infrastructure.

Of the 1,600 survey respondents, nearly half said 25-50% of employees in their organization work remotely above last 18 months, and a quarter said they had closed between 25 and 50% of their sites.

After the pandemic restrictions are lifted, 43% said they expect up to half of their company’s workforceI will stay distant. This reduces the request on apps and services provided from legacy internal data centers.

“WI have statisticsAl discoveries about this movement towards what we call “the permanent hybrid company”, ginsburg noted. “And with it, enterprises are shifting to a cloud-centric and service-provider-centric posture.”

This partly explains why 35% of respondents said they were looking to eliminate all in-house data centers and move to the public cloud within the next 12 months, with 16% wanting to do the same within 12-24 months. Another 27% said they would eliminate at least some of their server rooms, replacing them with cloud services.

Among newly popular cloud and SaaS applications, Microsoft Teams was the clear leader, identified by 58% of respondents as most important to their organization, up from just 34% in 2021. It was followed by Microsoft 365 (55%) . Zoom and Google Docs (35%), Salesforce (28%) and SAP (25%).

There should be plenty of money to pay for all future infrastructure initiatives: the survey suggests that IT budgets are on the rise, in line with other industry surveys. A quarter of respondents expect their budgets increase by 25% or more next year, while three quarters are projecting growth of at least 10%.

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