Concern over IT security issues is so compelling that global organisations will increase spending on hosting services by 91 per cent by 2007, according to market watchers.
Infonetics Research estimated that spending is set to rise from $3.3bn to $6.4bn, with expenditure on data centre products predicted to rise by 27 per cent, from $7.3bn to $9.3bn.
The analyst predicted that combined data centre product and service expenditures are expected to grow 47 per cent, from $10.6bn to $15.6bn, between 2003 and 2007.
"Respondents participating in our study plan to increase their expenditure on hosting services by more than 50 per cent over the next two years," said Neil Osipuk, lead analyst of the study.
"This is good news for the hosting service providers which have not joined the exodus of providers which are crawling, limping, or sprinting away from the market."
According to the report, 90 per cent of respondents say that security is the main reason why they want to build their own data centres, while 85 per cent cite performance as the main driver.
For companies planning to buy hosting services from a service provider, 89 per cent cite security concerns as their principal reason.
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