News
Four-Year 23% CAGR Trajectory Forecast for Carrier-Neutral Data Centres
October 2009 by Interxion et IDC
A recent data centre study conducted by IDC, on behalf of carrier-neutral data centre operator Interxion, has found that the continuing demand for outsourced data centres is likely to result in an estimated CAGR of 23% in the sector’s major European markets (UK, NL, DE and FR) over the coming four years. This equates to growth in these markets from €725 million (2008) to €2,007 million (2013). The survey, which reflects views of respondents from about half of the European market by revenue, also revealed that 95% of European companies operate in-house data centres with accelerating migration to outsourcing.
Contributing to the growth of colocation is the increase of digital content (such as IPTV and music) as well as the growth of high-bandwidth consumer and business internet based applications, specifically social networking, public and private Cloud computing and SaaS. Another set of factors contributing to this growth includes the cost/benefit-driven movement of enterprises to opt for carrier-neutral data centre colocation over in-house data centre enhancement. The cost side of the analysis is being greatly affected by the need for power and cooling density to enable virtualisation and the ready availability of appropriately skilled personnel in outsourced data centres.
The report also highlights a strong correlation between the main challenges of managing in-house data centres and the main perceived benefits of colocation. The key challenges (as defined by 25 - 40% of respondents) are flexibility, security, managing operating costs, external connectivity issues, and securing Capex. The key perceived benefits of colocation (as defined by 25-40% of respondents) include better resilience, scalability and flexibility, better security, and greater cost-effectiveness. Personnel issues also correlate quite closely: 20% of respondents regarded hiring and retaining skilled staff as a key challenge, and 24% believe that data centre operators have better skills.
“These findings are very encouraging for the continued long-term growth of carrier-neutral colocation in Europe, especially when you consider that 95% of European companies currently operate in-house data centres, and various factors are supporting the migration of these to outsourced centres,” said David Ruberg, Interxion CEO. “It is also important to bear in mind that these are long-term trends, not short-term fads. As well as recognising the reduction in overall costs that can be gained through colocation, our respondents see the resilient connectivity that carrier-neutral facilities provide as key to the successful delivery of the benefits of next-generation technologies.”
“To a great extent the findings of this latest survey underline an existing trend,” commented James Eibisch, Research Director, EMEA Business Network Services", at IDC. “There is a huge market for colocation, as it directly addresses many of the acknowledged shortcomings of in-house data centre facilities. The take-off of virtualisation and the gradual migration towards Cloud services accelerate the trend, making the concept of outsourcing to a colocation facility even more attractive.”
The report surveyed over 400 senior-level IT decision makers across a broad range of industries in the UK, France, the Netherlands and Germany, as well as a selection of leading carrier-neutral colocation providers who, between them, account for 50% of the European market by revenue.
