Business leaders are re-evaluating IT suppliers as a result of increased energy prices

Data centre provider ServerChoice has released new research, highlighting the widespread impact of the cost of energy increase and how it is leading businesses to re-evaluate their IT suppliers.

The research, which surveyed over 1,000 UK business leaders found that 77% of businesses are experiencing price increases from their suppliers, with 84% worried about how the rise will impact their bottom line. Despite this concern, over a third (36%) of business leaders have not begun contingency planning to alleviate the pressures of the growing cost of energy.



However, of those who have begun contingency planning, 35% are currently re-evaluating their providers in an effort to help offset the growing cost of energy. Those most likely to be evaluated are utility providers, with 63% stating this, followed by IT suppliers, with 32% stating this.



This market exploration comes at a time when businesses are growing increasingly dependent on data storage, with 75% envisaging a need to increase their capacity over the next five years.



Adam Bradshaw, Commercial Director at ServerChoice, said, “For data centres, where the cost of energy continues to be the largest financial expenditure for the business, providers will have to think laterally about how to offer competitively priced services to help underpin the demand for data storage.”



The research also found that the largest deciding factor when determining a new supplier is competitive pricing, with 91% of business leaders stating it would be fundamental in their selection process. 63% stated service offering would also be a highly influential concern and a further 40% of leaders stated flexible contracts were amongst their top priorities.



Adam added, “The coming months look set to be a period of upheaval. Providers that are always seeking new ways to improve energy efficiency will be able to offer the most competitive pricing as the cost of energy increases across the board.



“Our research also found that a strong majority of decision-makers greatly prioritise valuable service offerings. Data centres that offer tailored data storage packages suited to individual businesses' requirements, whether that includes hybrid infrastructure options, assistance when moving provider or even negotiable contract periods, will be best positioned to aid the decision-makers looking for new suppliers.”

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