Gartner Research

Decision Point for Application Placement: Cloud, Managed, Colocation or Do It Yourself

Published: 23 December 2014

ID: G00270922

Analyst(s): Nik Simpson , Vikas Kanwar


The decision to insource or outsource enterprise applications is complex. This Decision Point describes the process for determining where and how enterprise applications should be hosted. Sourcing may be done internally or through externally hosted cloud and managed service models.

Table Of Contents

Decision Point

Decision Context

  • Business Scenario
  • Related Decisions

Evaluation Criteria

  • Requirements and Constraints
    • Service-Level Requirements
    • Network Requirements
    • Resiliency and Recovery Requirements
    • IT Skills Requirements
    • Flexibility Requirements
    • Security Requirements
    • Regulatory Constraints
    • Compatibility Constraints


  • Internal IT
  • Managed Services
  • Colocation
  • Public Cloud

Future Developments

  • Internal IT Becomes the Broker of Hybrid Services to the Organization
  • Boundaries Between Cloud and Colocation Will Continue to Blur
  • New Regulatory Requirements Will Be Passed
  • Cloud Brokers
  • Growing Adoption of Cloud-Based Disaster Recovery and Other Enterprise Workloads
  • Continued Outsource Provider Specialization for Differentiation
  • Continued Consolidation of Service Providers
  • Continued Data Center Consolidation
  • Data Center Infrastructure Management (DCIM) Tools to Optimize Data Center Utilization

Decision Tools

  • Using the Decision Tools
    • Decision Filter
  • Requirements and Capabilities Assessment

Decision Justification

  • Internal IT
  • Managed Services
  • Colocation
  • Public Cloud

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