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A Look at Data Center Services Markets in Different Regions

by: Sarah Joson

Thursday, March 29, 2012 | Outsourcing News |

Data Center Services

More often than not, service providers offering data center-related services overlook the needs of clients from different regions. In accordance to the recent study from research firm Gartner, the preferences of buyers coming from different regions vary, even when outsourcing data-related services.

Chris Preimesberger shared an article at EWeek.com, which gives an in-depth analysis of the data center services (DCS) market report from Gartner. The report highlights how the current DCS market is transitioning from traditional processes to more diversified ones, and how location is affecting the decisions of business owners. Some of the modern services being adopted by business owners around the world are cloud computing infrastructure as a service (IaaS), platform as a service (PaaS), and infrastructure utility services (IUS).

According to Claudio Da Rold, Vice-president and renowned analyst at Gartner, traditional markets have been looking for more room for growth and are considering on expanding current DCS operations. Enterprise organizations look at factors such as usage patterns, volume of each segment applied to the process, and market drivers.

In North America, hosting (42 percent) and cloud IaaS are two of the most procured services. On the other hand, other locations are more inclined to outsource data center-related services.  

These are the highlights of the report:

North America – For 2011, the data center outsourcing (DCO) market was valued at $33 billion. Meanwhile, both web hosting and data center sharing amounted to $23 billion. This location also takes up 60 percent of public cloud services globally.

The growth rate of traditional DCO services slowed down since IUS solutions, lower-price IT outsourcing (ITO), and industrialized models have been made available. However, the DCO/IUS market increased progressively via modern offerings like storage as a service.

Europe – This region took up 23 percent of the global public cloud services. The DCO market reached $38 billion last year but web hosting and co-location, valued at $8.6 billion, was far from North America’s figures.

Asia/Pacific – This region had the least transactions in the DCS market which was valued at $10 billion last year. Public cloud adoption was only at 9.8 percent in Japan and 3 percent for the rest of the region. Web hosting and co-location were valued at $2.5 billion.

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