A survey of 600 business and IT decision makers has reported that in-house IT does not add any business value.
According to the study from Vanson Bourne for hosting provider Savvis, 61 per cent of respondents believe managing IT in-house provides no competitive advantage and has to stop.
Forty-one per cent of those asked said lower total cost of infrastructure ownership would be the main reason for moving to cloud-based IT. From the survey, in-house IT infrastructure is predicted to drop from 90 per cent today to just 23 per cent in 2020.
When asked what factors prevent their organisations from outsourcing all elements of their IT infrastructure, survey respondents cited company culture (43 per cent) and sunk costs where IT assets are already paid for and owned (37 per cent).
Fifty-one per cent of public sector IT leaders said huge savings could be made from cloud but central government guidelines make it difficult to switch.
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