British businesses are spending an average of £213,000 per year just on storing and managing their own data, new research has claimed.
A report from Seagate claims that this can mean up to a third of company IT budgets are dedicated to this vertical alone.
The firm surveyed over 500 senior IT decision-makers at companies with more than 1,000 employees, and over half (52%) of them described the level of spending as "unsustainable".
What's troubling IT decision makers?
The vast majority of the IT decision-makers (90%) said they are concerned about rising costs, and the majority (51%) believe that their management does not always realize the scale of the problem.
In addition, nearly two-thirds (64%) of those surveyed believe that the way data storage and management is currently priced discourages innovation. What's more, further price increases appear to be on the horizon.
Businesses have experienced a 30% increase in data-management spending over the past year, and over half think they will not be able to sustain these kind of costs in 3 years time.
I's not just UK firms that are spending big on data management. A November 2022 report from tech analyst firm IDC found businesses worldwide were spending $41.1 billion annually in the "Data Management" workload category.
IDC predicts that this segment of spending is set for a 9% compound annual growth rate, which will see this figure reach $56.3 billion by 2026.
- Interested in reducing your organization's storage costs? Check out our guide to the best servers
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Will McCurdy has been writing about technology for over five years. He has a wide range of specialities including cybersecurity, fintech, cryptocurrencies, blockchain, cloud computing, payments, artificial intelligence, retail technology, and venture capital investment. He has previously written for AltFi, FStech, Retail Systems, and National Technology News and is an experienced podcast and webinar host, as well as an avid long-form feature writer.