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Targeted Strategies Needed for Growth of European Data Center Services

by: Sarah Joson

Tuesday, July 22, 2014 |

Localized Data Center Outsourcing Services

Europe has regional data laws that affect the decision-making process when it comes to outsourcing. This makes data center location a crucial concern for outsourcing buyers. Also, with European firms having a regional nature, they are known to prefer local providers. Language and cultural barriers are also present particularly in France, Italy, and Spain.
Shuba Ramkumar, Research Analyst at Frost & Sullivan Information and Communication Technologies, advised providers to offer services that are localized or are focused within a specific region. Security and data confidentiality should also be guaranteed by the service providers to win potential customers.

Ramkumar said companies are now more focused on reallocating internal resources to the core processes of their business and becoming more economical. This is why organizations are looking for solutions such as managed hosting and data center services. 

Ramkumar also said cloud will propel colocation services. However, security and efficiency are expected to become long-standing problems to the growth of the cloud.

With the numerous changes and dynamic requirements in the data services segment today, hybrid services are now becoming popular among providers and buyers, resulting to a combination of colocation, managed hosting, and cloud solutions.

An article posted at Finance.Yahoo.com highlights several factors that are contributing to the continuous growth of the European data services market and the adoption of outsourcing. These include inter-machine connectivity, as well as the advancement of cloud technology and applications. The rising volume of data is also identified as a key growth driver as companies are strongly considering new innovative ways to address issues without having to deal with internal data centers.

Even with the challenges, the data services market of Europe is projected to post a compound annual growth rate (CAGR) of 16 percent until 2018 with Germany, the United Kingdom, France, and Benelux as the largest markets in the region.

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