by Madhav Mohan

Datacenter Complexities Leading to High Cost: CIO Research

Sep 29, 20142 mins
BudgetingBusinessCloud Computing

An increasing number of business critical applications, the growth in data volumes and server virtualization, inadequate budgets, and cloud computing are factors leading to an increase in datacenter complexity.

An overwhelming 80 percent of Indian CIOs say that the increasing number of business critical applications is the primary reason behind a rise in datacenter complexity. Nine months ago, only 30 percent of Indian CIOs believed that. These findings come out of the State of the CIO Mid-Year Review 2014, carried out by the CIO Magazine.

In the BFSI sector, a whopping 81 percent of CIOs feel that the increasing number of critical applications add to existing datacenter complexity. Nonetheless, these applications are critical in driving enterprises.

Another necessary evil is the growth in data volumes. As many as 75 percent of Indian CIOs say growing data volumes is contributing to datacenter complexity. Nine months ago, only 38 percent of CIOs thought so.

In this regard, the manufacturing sector has shown the highest growth. Eighty percent of CIOs from the sector say they are facing problems because of increasing amounts of data. In October last year, that figure stood at 39 percent.

The IT/ITeS sector has also reported a sharp spike in data volume growth, feel 72 percent of respondents.

According to the annual study, other factors that add to existing datacenter woes are cloud computing, inadequate budgets, and server virtualization.

Real-time data warehousing also puts a strain on existing infrastructure. As a result, 37 percent of CIOs feel that reduced agility is a factor that impacts organizations’ effectiveness.  This figure was 15 percent nine months ago.

The longer lead time to provision compute resources affects organizational effectiveness adversely, according to 27 percent of respondents this year. However, nine months ago, only 16 percent of CIOs felt the same.

Other factors affecting organizations are compliance incidents, higher downtime, missed SLAs, and security breaches.