DatacenterDynamics Census Forecasts Data Center Outsourcing To Reach $8b

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The data center market is still cautious as far as Cloud adoption goes. While security issues, regulation and legal responsibilities have dampened the appeal of Public Cloud, variants of Private Cloud remain attractive.

London (I-Newswire) October 12, 2011 - Outsourcing is a critical option for many users of data center services according to the Data Center Industry Census 2011. Global market investment is set to rise to $8 billion in 2012, with a substantial proportion of racks being outsourced in every market sample surveyed according to a new report “Technology Cycles and Cloud”, available for free download at www.datacenterdyanmics.com/research.

In quantitative terms, the sample indicates the USA is the largest market with 210,000 racks outsourced either to third party suppliers or to other offices. However, there is enormous variation in the proportion of outsourced racks from region to region; from as little as 3% in the Middle East, to as much as 28% in China and 30% in India.

Nick Parfitt, a researcher at DatacenterDynamics said, “It is evident that outsourcing fulfils different roles in the evolution of markets; as an entry point for organisations which have not yet evolved the capacity requirement to operate their own environments, or as an exit point in developed markets where the pace of increased IT requirements has exceeded in-house capacity.”

As far as Cloud services are concerned, interest in Public cloud is broadly similar across markets at different stages of development, with Cloud infrastructure and Private cloud being the preferred options in order of importance. However, the research indicates that neither variants of Private cloud are likely to replace other outsourcing options any time in the near future and that the technology is being considered as part of a portfolio approach to managing outsourced services.

The research findings suggest that Cloud options will be far more commonly developed as part of existing infrastructure, either in-house by client companies or on dedicated infrastructure by service providers. This is driven by the perception of the vulnerability of Public cloud to security threats and legal issues. Interest in the uptake of Private cloud variants rises with the level of market evolution, although major growth markets such as China and Brazil are interested in all options which reduce resource costs.

The Technology Cycles and Cloud report is based upon the responses of 3800 data center owners and customers gathered and analysed by DatacenterDynamics. It reveals that up to a point, much of the infrastructure essential for normal day-to-day operations is on a shopping list for major upgrade on cycles of two to four years. Adoption and consideration of new technologies is also broadly in line with the state of development of data center markets; the more “advanced” the market, the more likely it is that owners and operators are focussed on areas like the efficiency and management of their facilities.

Technology areas which stand apart from “staple requirements” and “special requirements” for include two variants of Cloud (Private cloud and Cloud infrastructure), together with Data Center Infrastructure Management (DCIM) software, data center automation, modular design principles and the upgrade of systems management.

“The implementation of modular design principles and automated operations is squarely aimed at eliminating the hazard of human intervention and therefore human error within data centers; it is perceived to be a matter of good risk management practice,” said Nick Parfitt, researcher at DatacenterDynamics. “The Census has highlighted concerns about skills shortages across all markets, and these tend to be more acute in regions where more aggressive growth is being experienced.”

The market for DCIM software has been highlighted as showing high growth potential in other surveys. In more developed markets, rising interest reflects concerns over energy costs and environmental degradation as well as the need to for a faster and automated response to emerging operating issues in complex, high density and virtualised server environments.

The Technology Cycles and Cloud report can be found together with other reports covering Data Center Investment and Growth, Human Capital and Global Data Center Energy Demand Forecasting by visiting www.datacenterdynamics.com/research.

About the 2011 Data Center Industry Census

The DatacenterDynamics Industry Census 2011 is the largest ever comparative study of data center operators and end-users as well as the facilities which they manage. A total of 5,400 interviews were completed during June and July 2011 to provide a detailed view of 22 key markets around the globe. The Data Center Industry Census provides a useful method of comparing market profiles, describes key trends and attitudes within those markets, and answers a myriad of questions about the nature of this rapidly growing sector. Research findings will be published in separate reports and available for free download at www.datacenterdynamics.com/research.



Editors Notes

For the purposes of the Data Center Industry Census 2011, the following definitions of Cloud variants have been used:
•Cloud infrastructure: the cloud infrastructure is operated solely for and managed by the organisation itself, and exists as part of the organisation’s portfolio.
•Private cloud: the cloud infrastructure is operated solely for an organisation and is managed by a third party whether on premise or off premise.
•Public cloud: the cloud infrastructure is made available to the general public or a large industry group and is owned by an external organisation selling cloud services.
As a thank you to those respondents who gave their time to the DatacenterDynamics Industry Census 2011, DatacenterDynamics has made a donation of $13,925 to the UNICEF Children’s Emergency fund.





About Spa Communications:
Spa Communications is a technology marketing communications agency which has specialised in the data center market, including the physical aspects of power, cooling and space management. In addition, the agency has interests in the Cleantech sector as well as renewable and sustainable energy generation for retail, industrial and residential applications.

Company Contact Information
Spa Communications
Damien Wells
1 - 3 Lime Hill Road
Tunbridge Wells
TN1 1LJ
Phone : +44 (0) 1892 511413




Business > Technology

technology   Cloud   cycles   DCIM   DatacenterDynamics   Census  

October 12, 2011

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