European businesses chose in-house IT over public cloud

European businesses are increasingly turning to in-house IT provision and private cloud rather than public cloud services, a survey finds.

European firms are moving more of their computing infrastructure back in-house in an attempt to better align IT infrastructure to business needs, according to a survey.

The proportion of European businesses using only in-house data facilities has risen from 45 to 66 per cent since January 2012, according to Oracle's annual Next Generation Data Centre Index.

The move toward in-house IT provision and private rather than public cloud services seemingly flies in the face of recent findings that companies are increasing their use of public cloud offerings like software as a service.

The amount of organisations with only a single in-house datacentre has also risen, from 26 to 41 per cent in the same period, according to Oracle's yearly survey of 950 businesses with an annual revenue of more than $100M.

Businesses are recognising the importance of in-house understanding of data and business needs when implementing the likes of new delivery channels or low-cost service provision, said John Abel, Oracle's EMEA hardware engineered systems product leader.

"Certain things that in the past they may have wanted to outsource they now understand the value of having the data aligned in their own datacentre is much more important," he said.

He said that as businesses and cloud service providers increasingly rely on similar virtualised computing platforms, movement of data between private and public cloud platforms could take place much more frequently in the coming years - with public cloud services used to rapidly provide additional capacity.

Server utilisation and virtualisation levels are up in the UK, with the report finding that one in three firms had server utilisation levels of above 50 per cent and half reporting virtualisation levels of above 50 per cent.


Nick Heath is chief reporter for TechRepublic UK. He writes about the technology that IT-decision makers need to know about, and the latest happenings in the European tech scene.


Considering the cost difference between having an in-house IT department and contracting with a cloud-based provider, I'm curious as to what the cost benefits are of moving your IT and cloud solutions back in-house? What do these business say is the added value of having the data aligned in their own datacentre?

Tony Hopkinson
Tony Hopkinson

Subject says chose, where as the content indicates businesses have reversed their thinking (as in choose). As far as I'm aware there has been no great surge into the cloud to reverse. I've always been curious as to what the cost benefits of moving to the cloud are myself... We are a cynical lot, when someone says if you buy this off us you will save loads of money, we start thinking bridge, one careful owner..

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