IT Departments Retain In-House Control Over Data Storage

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Despite the proliferation of the cloud, new research reveals companies aren't completely abandoning proprietary methods for storing critical information.

A survey conducted by CoreNet Globaland Newmark Knight Frankshows that 50 percent of companies are investing and planning to build or expand corporately owned and managed data centers.

A preference to maintain data-center operations internally, as opposed to outsourcing them, is the driving force in the majority of companies forgoing the cloud. The lack of existing capacity and company growth were also motivating factors, the survey found.

According to the study, fewer than 10 percent of companies outsource their entire data-center computing to the cloud, with nearly a quarter not using the cloud at all.

"Data centers are the digital-age equivalent of the engine room driving today's globally networked corporate enterprise," said Bryan Loewen, senior managing director of Data Centers for Newmark Knight Frank Global Corporate Services.

The survey revealed that companies are most concerned with risk management and business continuity when deciding where to locate their data centers.  

In addition, more than 60 percent of the surveyed executives said low-risk areas were critical. A majority also said they want their data centers in areas with redundant power sources that have access to high-speed fiber-optic networks.

Companies are increasingly consolidating or combining their data centers as well, the research shows. Those that are doing so cite the cost of the relocation, disaster recoverylimitations and the need for infrastructure upgrades as their biggest concerns.

The research was based on surveys of executives at 30 multinational corporations.