Managed hosting 'attractive in tough times'

Managed hosting will prove popular in troubled economic times as such measures help firms cut costs, one expert has claimed.

Writing for Computing.co.uk, Forrester analyst Phil Sayer said that managed services thrive in difficult times as businesses look to cut spending and look to sign simple contracts for services that can be negotiated and implemented quickly.

"Under these circumstances, infrastructure managed services are attractive to firms. They enable them to reduce or avoid capital expenditure and to focus IT on areas of their business that are key to success and are not a commodity," he stated.

Mr Sayer added that hosting services will prove popular as firms do not have the ability to raise capital expenditure to build or expand data centres while financial pressures remain.

Recent findings from the National Outsourcing Association highlighted that outsourcing IT functions is expected to become more popular during the recession, with many forms looking to embrace such measures in the coming months.

Written by Mark Hainsby