Enterprises bringing data back in-house as they adapt to big data demands

Oracle survey shows that organizations no longer looking to third party providers for capacity support

Enterprises are moving data in-house as they adapt to big data demands, a joint Oracle and Quocirca report has indicated, reversing a trend towards looking to third party providers for short term capacity support.

The third Oracle Next Generation Data Center Index Cycle report, surveying 952 organisations across EMEA and Asia Pacific, has shown that many enterprises are investing in data centre infrastructure within their own property, bucking the trend of a similar report released last year.

The latest Index Cycle report shows that the amount of respondents using only in-house data centres has risen to 65%, up from 45% this time last year. The number with a single in-house data centre facility rose from 26% to 41%, while those with multiple internal data centres grew from 19% to 25%.

Meanwhile the number of respondents with a mix of external and internal facilities was down, falling from 56% to 34%.

The movement of data in-house reverses a trend highlighted in last year's report, which found that enterprises were looking to external data centres in order to deal with the explosion of big data, leading to 'panic-buying of capacity' from external providers.

While the amount of data enterprises are dealing with is continuing to increase, the strategies used to deal with the issue are changing, suggested John Abel, Engineered Systems Product Leader EMEA Hardware at Oracle.

"Last year what we saw is that people were starting to expand external facility," said Abel told Computerworld UK. "We put this down to cloud computing [at the time], but actually we see people are now going back to their own facilities."

There are a number of reasons for this shift, Abel said. One is the "re-using of assets", with organisations keen to invest in their own capability by injecting capital into IT. Another is increased coordination between business and IT within an organisation, with greater awareness by of data usage among C-level staff.

Abel also pointed to shifting attitudes towards the use cloud as a possible driving factor in bringing data in-house. Following the mainstream acceptance of the cloud, many organisations are now bringing certain applications back into internal data centres as a private cloud rather than external deployments, or are looking towards hybrid clouds.

"Last year cloud computing was being explored by the businesses, and they were doing develop and test piloting. But the private and hybrid clouds have now come to maturity," he said.

"They are utilising these different platforms for different business functions. Because they are doing this they are taking those savings and opex reductions and actually investing that back into their own landscape."

While there may be no single driving factor for enterprises switching preferrence to internal data centres, what is clear is that the amount of data that organisations are dealing with is showing no signs of abating, with more respondents highlighting the need to make investments in data centre capacity.

The number of organisations indicating that they will need a new data centre in the next 12 months grew from 22% to 26%. On the other hand the number which say they have no need to increased capacity has fallen over the period, from 17% two years ago to 7% this year.

This story, "Enterprises bringing data back in-house as they adapt to big data demands" was originally published by Computerworld UK.

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