What’s Driving the Surge in SMB Data Center Spending

At Titan Power, we take pride in delivering the latest solutions for data center design and management to businesses of all sizes, even when those solutions are constantly evolving. One of the biggest shifts we’re seeing in the industry right now is the switch from on-premises to cloud-based and third party serviced data center management on a massive scale. One study reported that spending on data center services was expected to grow by 18.39% this year among small to medium sized businesses, but industry insiders think that figure could go higher thanks to several driving forces.

 

Expansion of Offsite SMB Data Center Management

 

Data center solution providers believe SMB cloud opportunities are some of the most predominant factors driving the trend in third party data center spending. More and more SMBs are choosing to divest data management jobs that are just too costly in time. One insider remarked that the 18.39% figure was much too low, given that more and more businesses are choosing to leave data center management to third party pros and this is a trend that’s only expected to grow. In fact, spending on data center management could increase by as much as 50% because:

 

  • Growth is only projected to accelerate over the next 3 – 5 years
  • Physical servers will reach their end of life in this time
  • Organizations will choose to replace them with third party and cloud-based solutions.

 

The SMB Spending Shift is Already Taking Hold

 

Some companies and pioneers are already making monumental investments in data center infrastructure. Google is one such example. Less than two years ago, Google invested a record breaking $1.6 billion in data centers.

 

From Philosophical to Practical

 

Cloud versus on-premise data infrastructure has long been considered more of a religious debate than actual discussion. Now, we’re seeing practicality take over. More and more business owners agree that cost and growth scalability have the biggest impact on their decisions to switch to third party data center management.

 

What It All Means

 

The shift to cloud-based data center spending is no doubt an exciting development. For businesses that have the budget to do so, the change in data management means more time and overhead to focus on company growth rather than tedious server management tasks. Businesses need only seek the assistance of a savvy third party service provider that is skilled in cloud-based solutions, like Titan Power, to start reaping the benefits of off-site data center management.

 

Contact Us

 

Want to learn more about how Titan Power can help streamline your data center management? Call us today at (800) 509-6170 to see what we can do for you.

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