October 11, 2008 – (HOSTSEARCH.COM) – Rackspace (http://www.rackspace.com/) has conducted a survey that predicts a "significant rise in hosting services", it was reported recently. According to the survey, the demand for hosting services is ''set to soar over the next five years", with over 70% of IT managers expecting increased outsourcing of traditional IT functions to "hosting, SaaS or cloud service providers".
The survey suggested that against a backdrop of economic downturn, demands on IT budgets are likely to either remain the same or increase. As a result, IT managers are likely to assign a "significant part of their budgets to hosted services". 47% suggested they spend up to 20% of their IT budget on hosted services, while 30% of respondents said that they spend 30% to 50% of their budget on hosted services. 50% of those asked the amount of their budget they spend on hosted services is set to increase over the next five years. 40% would not hesitate to host applications with third parties.
Accounting, finance, payroll, billing, file and print servers, and HR are the least likely functions to be outsourced with email, web sites, and analytics/business intelligence the most likely. "Two thirds of the survey respondents use a services provider to host one or more of their SaaS applications today and the data indicates that demand is likely to increase," explained Chief Technology Officer at Rackspace, Mr. John Engates.
In addition to financial reasons for outsourcing, over 40% suggested outsourcing hosting saves between 30%-50% of their time, with 44% suggesting they can "spend at least 25% more time on new projects" because of the time saved by outsourcing.
