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(c)iStock.com\/ivanastar<\/em><\/p>\n According to the latest figures from 451 Research, more than a third of enterprise IT budget is expected to be spent on hosting and cloud services in 2017.<\/p>\n Currently, enterprises spend more than a quarter (28%) of their budget on cloud, but 451 argues this number will go up to 34% next year. Despite hosting and cloud providers positioning themselves as infrastructure players, only 31% of that budget goes towards infrastructure services, with applications (42%), managed services (14%) and security (9%) also being used.<\/p>\n Enterprises are also picking multiple vendors for their hosting and cloud services; public cloud infrastructure providers were cited by 69% of respondents, followed by managed hosting providers (26%).<\/p>\n 451 argues that the infrastructure as a service (IaaS) and software as a service (SaaS) markets are much more consolidated – which rings true with other industry research – but managed services is an area of much greater interest.<\/p>\n “The markets for unmanaged IaaS and SaaS are dominated by large, hyperscale vendors. However, this spending trend indicates there is an appetite for the type of bundled services a broader market of managed service providers are well positioned to deliver,” said Liam Eagle, 451 research manager. “A strong opportunity exists for service providers offering a diversified set of hosting and cloud services that includes infrastructure and application hosting, as well as managed services and security services delivered around them.”<\/p>\n Eagle added that the market for managed infrastructure and application services was a longer tail market, including the possibility of reselling services from the largest IaaS and SaaS vendors. Rackspace is arguably the best example of this; the company confirmed that it was going private back in August<\/a>. In the firm’s most recent financial results as a public company, the company said that 277 customers chose its AWS resell service over the past nine months, with 60% choosing the higher tier option.<\/p>\n","protected":false},"excerpt":{"rendered":" (c)iStock.com\/ivanastar
\nAccording to the latest figures from 451 Research, more than a third of enterprise IT budget is expected to be spent on hosting and cloud services in 2017.
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