Enterprises Turn to Data Center Providers for Security, Compliance

Survey by US Signal shows network availability, backup, disaster recovery to be other priorities

Security, compliance, network availability, and backup and disaster recovery are the key concerns when enterprises evaluate third-party data center providers, according to a recent survey by US Signal.

The Lowdown:  An increasingly data-centric business world, more sophisticated cyberthreats, and the growing focus on data regulations are among the key drivers of organizations turning to data center service providers as an alternative to managing the security and connectivity concerns in their own facilities, according to the company’s “2020 State of Data Centers Offerings” report, released this week.

The Details:  The Grand Rapids, Michigan-based data center service provider – which owns 14,000 miles of lit fiber networking and access to more than 225 data centers and points of presence (POPs) – surveyed 110 IT decision-makers in the United States for the report. The key findings include:

> Security and compliance: 58% of respondents said security and compliance were high priorities and 31% said they were the top priorities.
> Regulations and threats: The numbers indicate that new regulations like the European Union’s General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) are helping fuel the interest in data center providers. An increase in ransomware attacks – 38% said they were impacted by such attacks in the past 12 months – also is pushing enterprises in that direction.
> Backup and disaster recovery: 42% of respondents said those also were key considerations when choosing a data center provider. While about 75% said they were currently using backup and disaster recovery services from edge data center providers, 54% said they’re somewhat or not very confident in their solution if an incident like a cyberattack or IT outage hit.
> Location, location, location: 91% said they were likely to opt for a data center provider that was located near their users. Network capacity and connectivity options were a priority for 46% of respondents, with 15% calling it their top priority, thus highlighting the importance of proximity and network connectivity.
> In the cloud: 66% said they run a hybrid IT architecture, with 20% saying their infrastructure is entirely in the cloud and 14% saying it’s all on-premises.
> Skills gap: 86% said they have the resources to handle daily data center operations, but the survey found that they’re turning to third-party providers for tasks outside of the day-to-day routine. About 34% have started using edge data center providers in the past six months and 11% said they’ve started doing so within the past two weeks.

The full report can be seen here.

The Buzz:  “As more industries are becoming data-driven, the need to meet data compliance and connectivity demands increases,” said Dave Wisz, executive vice president of operations at US Signal. “The recent introduction of major data regulations signals a change in the way governments are viewing data management, and this is causing companies to better equip themselves by seeking the services of third-party data center providers. This, coupled with the consumer demand for easy and quick access to data, is causing the required offerings from data center providers to evolve in ways that ease the burden of security, connectivity, data protection, and compliance for customers. While the survey showed a clear rise in companies utilizing their data center providers’ services, we hope that the providers themselves can use these findings to enhance their offerings and ensure that they are meeting the needs of today’s businesses.”

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