Security and compliance concerns are driving the shift to hybrid cloud

UK organizations are increasingly moving away from on-premises environments in favor of managed hosting services .

According to technology research and advisory firm Information Services Group (ISG), both large and mid-market firms are shifting their cloud environments away from public cloud and back to private cloud , or to a hybrid model.

The 2024 ISG Provider Lens Private/Hybrid Cloud – Data Center Services report found that change is being driven in large part by the growing need for strengthened security and compliance with changing regulations.

"Service providers can assist mid-market enterprises in developing these hybrid cloud strategies," said Anthony Drake, ISG partner, North Europe.

"They offer reduced deployment costs, disaster recovery solutions and access to modern computing technologies such as serverless architecture, database as a service and DevOps practices."

Many UK enterprises are gradually shifting their focus from on-prem environments to outsourced services such as managed hosting for data storage and business continuity purposes.

This, ISG said, reduces the burden of operating a private data center while maintaining control over the hosted data. It also provides enterprises with extra flexibility and features, such as multi-cloud connectivity, low-latency network connectivity, bare metal services, platform-agnostic operating systems, and database support.

Meanwhile, the report noted that data centers in the UK are positioning themselves as connectivity hubs, offering access to advanced communication infrastructure such as fiber, dark fiber , internet exchange points (IXPs), and subsea cables.

"Large enterprises in the UK are looking for providers who can offer reliable uptime, secure data storage and high-performance network connectivity," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

"The priorities for midsize enterprises lean toward comprehensive technical support, including 24/7 monitoring, rapid incident response and proactive maintenance that will ensure maximum uptime and availability."

With rising energy costs and general economic pressures, ISG found many UK companies are struggling to achieve the sort of financial stability they need to adopt new technologies such as AI .

Take control of your data security

The firm advised focusing on cloud optimization, with FinOps offering the best solution. Organizations should also resist the 'London-first' approach and consider data centers in other regions such as Manchester, Slough, and Birmingham, which may be more cost effective.

Similarly, rather than hiring new staff, they should train their existing workforce, perhaps with help from their cloud service provider. They should also keep a careful eye on potential security gaps in their infrastructure.

"Enterprises that grow complacent about security may face a rather rude awakening," the researchers warned.