Hosting will continue to be a core IT strategy. Here’s why.

At first glance, the decision to outsource hosting is really a matter of basic economics. For IT managers, outsourcing to a hosting provider has proven itself to be more cost-effective than having to plan, build, manage and maintain the physical space itself.

Globally, the markets for managed hosting, as well as cloud computing, continue to grow rapidly. In fact, most IT organizations are now moving away from an on-premises infrastructure toward outsourcing, and, more and more, toward a hybrid cloud-oriented approach.

But economics is not the sole motivator. IT managers take a much more holistic view.

In a recent study, Cogeco Peer 1 customers said their major motivators include increasing efficiency, improving security, and better management of risk and compliance. Also important is the ability to improve access to data, and to create new products and services.

The reality is that hosting leads to greater flexibility for IT departments, giving them the ability to leverage the latest technology with no legacy technology constraints, deploy internal IT staff more effectively, and innovate with new solutions more efficiently.

All together, it adds up to a goal that every IT manager looks for: the potential for much higher price-performance value across every metric.

In other words, more technology bang for the buck.