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Uptime Institute Survey Shows Significant Rise in Data Center Budgets in IT Sector

July 13, 2012

Uptime Institute Survey Shows Significant Rise in Data Center Budgets in IT Sector

By Rajani Baburajan
TMCnet Contributor

Uptime Institute, a division of The 451 Group (News - Alert), says there is a significant rise in data center budgets while many budgets in the IT sector are on the decline.

These findings were revealed in its second annual data center industry survey conducted to collect data on digital infrastructure deployment trends, procurement plans, measurement and standards practices, and other topics that impact the mission-critical data center industry.

Among the survey participants, 55 percent of organizations reported  a data center budget increase over 2011. Nearly 50 percent of organizations have deployed a private cloud and 25 percent have deployed a public cloud. As usual, cost reduction is the primary driver for organizations to pursue cloud computing.

The average power usage effectiveness (PUE) of respondents' largest data center is 1.8-1.89. Though modular data center deployment doubled over 2011, the growth is still in single digits --nine percent.

Matt Stansberry, Uptime Institute director of Content and Publications, said, "Our survey, which has already piqued industry recognition in its early stages, is a true picture of where the industry is headed as our sample base represents many of the top data center owners and operators across the globe."

 The 2012 survey has gathered responses from more than 2,000 owners, operators, vendors, consultants and users from around the world largely represented by the financial industry, technology service providers, manufacturing and government agencies. Over 75 percent of the participants manage more than one data center, with North America being the best-represented region.

Meanwhile, Infonetics (News - Alert) Research recently revealed that global revenue for data center network equipment fell to $2.2 billion in 1Q12, down six percent from 4Q11, but up a strong 17 percent year over year. WAN optimization appliances saw the steepest revenue decline, down 20 percent from the previous quarter. According to the report, Cisco (News - Alert) leads in overall data center network equipment market, followed by ADC leader F5 and HP, who remain in a neck-and-neck battle for 2nd position. 

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Edited by Brooke Neuman
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