While interest around data centre services (DCS) is extremely high, the market structure, dynamics and maturity differ across the world, according to Gartner, Inc. The shift toward industrialised services, such as infrastructure utility services (IUS), cloud computing infrastructure as a service (IaaS) and platform as a service (PaaS) is a global trend in the data centre services market.
"Many events have affected the DCS market in the past two years, with symptoms of a traditional market at the tipping point from maturity to reinvention or decline," said Claudio Da Rold, vice president and distinguished analyst at Gartner. "Buyers in enterprise organisations must recognise the common usage patterns and differentiated levels of adoption of hosting vs. data centre outsourcing (DCO), as well as the different business and market drivers toward new products."
In North America, hosting (42 per cent) and cloud IaaS have achieved the highest level of client adoption, while the markets in the rest of the world are dominated by data centre outsourcing (80 per cent). Other drivers across the global markets are economic growth and the buying trends of small or midsize businesses (SMBs). Combined, these factors cause the DCS market to evolve at a different rate toward the new delivery models in the macro geographies.
North America
Data centre outsourcing (DCO) in North America was $33 billion in 2011, while web hosting and collocation were $23 billion. This market has the highest cloud adoption rate, with 60 per cent of public cloud services worldwide, and the US hosting market has continued to accelerate the pace of innovation and transformation. The North American DCO/IUS market has grown both organically and through new offerings, such as storage as a service. Traditional DCO services growth continues at a slower pace than previously, due to IUS solutions and lower-price IT outsourcing (ITO) industrialised models.
Europe
DCO in Europe was $38 billion in 2011, while web hosting and co-location were $8.6 billion and public cloud services adoption 22.9 per cent. The European market used to be a fragmented puzzle of different and relatively small country markets, but since 2005 leading outsourcers have implemented low-cost remote control centres and then started developing IUS offerings to benefit from significant traction with infrastructure utility for SAP, particularly since 2008 and during the economic crisis.
Asia/Pacific
DCS in the region was $10 billion in 2011, while web hosting and co-location were $2.5 billion, and public cloud services penetration was 9.8 per cent in Japan and 3 per cent elsewhere. Japan and South Korea are the most vibrant web hosting markets for local content, while Singapore and Hong Kong are important regional hubs for multinationals. Other developed markets include Australia, New Zealand and Taiwan. A few large infrastructure vendors dominate the DCO market in the region, while regional and local providers operate in each country. A plethora of players, such as IT services providers, hosters and cloud specialists (from the US) have recently joined the race, with more expecting to fill the marketplace in the next 12 months.
Additional information is available in the Gartner report "Regional Differences in the Move Toward the Cloud, 2012." The report is available on Gartner's website at http://www.gartner.com/....
Additional information on the outlook for data centre technology will be provided at the Gartner IT Infrastructure & Operations Management Summit 2012 taking place from 5 to 7 June at the Peabody Orlando in Orlando, Florida, and 12 to 13 June in Frankfurt, Germany. You can also follow the event on Twitter at http://twitter.com/... using #GartnerIOM.
For further information about the Gartner IT Infrastructure & Operations Management Summit 2012 taking place 12 to 13 June, in Frankfurt, Germany, please visit www.gartner.com/eu/iom.
Additional information about the Gartner IT Infrastructure & Operations Management Summit 2012 taking place from 5 to 7 June at the Peabody Orlando in Orlando, Florida, is available at http://www.gartner.com/....
About Gartner IT Infrastructure & Operations Management Summit 2012
The traditional “walled garden” approach of IT infrastructure & operations (I&O) of delivering and managing services will fall short of business expectations. I&O will have to re-invent itself into a service broker to provide agility, lower cost and drive efficiency in the business. The Gartner IT Infrastructure & Operations Management Summit 2012 will provide advice on how I&O can continue to stay relevant to the business, by harnessing and channelling the power of social networks, cloud and mobile computing to deliver and managed end-to-end services in a rapidly changing multi-sources environment.
"Many events have affected the DCS market in the past two years, with symptoms of a traditional market at the tipping point from maturity to reinvention or decline," said Claudio Da Rold, vice president and distinguished analyst at Gartner. "Buyers in enterprise organisations must recognise the common usage patterns and differentiated levels of adoption of hosting vs. data centre outsourcing (DCO), as well as the different business and market drivers toward new products."
In North America, hosting (42 per cent) and cloud IaaS have achieved the highest level of client adoption, while the markets in the rest of the world are dominated by data centre outsourcing (80 per cent). Other drivers across the global markets are economic growth and the buying trends of small or midsize businesses (SMBs). Combined, these factors cause the DCS market to evolve at a different rate toward the new delivery models in the macro geographies.
North America
Data centre outsourcing (DCO) in North America was $33 billion in 2011, while web hosting and collocation were $23 billion. This market has the highest cloud adoption rate, with 60 per cent of public cloud services worldwide, and the US hosting market has continued to accelerate the pace of innovation and transformation. The North American DCO/IUS market has grown both organically and through new offerings, such as storage as a service. Traditional DCO services growth continues at a slower pace than previously, due to IUS solutions and lower-price IT outsourcing (ITO) industrialised models.
Europe
DCO in Europe was $38 billion in 2011, while web hosting and co-location were $8.6 billion and public cloud services adoption 22.9 per cent. The European market used to be a fragmented puzzle of different and relatively small country markets, but since 2005 leading outsourcers have implemented low-cost remote control centres and then started developing IUS offerings to benefit from significant traction with infrastructure utility for SAP, particularly since 2008 and during the economic crisis.
Asia/Pacific
DCS in the region was $10 billion in 2011, while web hosting and co-location were $2.5 billion, and public cloud services penetration was 9.8 per cent in Japan and 3 per cent elsewhere. Japan and South Korea are the most vibrant web hosting markets for local content, while Singapore and Hong Kong are important regional hubs for multinationals. Other developed markets include Australia, New Zealand and Taiwan. A few large infrastructure vendors dominate the DCO market in the region, while regional and local providers operate in each country. A plethora of players, such as IT services providers, hosters and cloud specialists (from the US) have recently joined the race, with more expecting to fill the marketplace in the next 12 months.
Additional information is available in the Gartner report "Regional Differences in the Move Toward the Cloud, 2012." The report is available on Gartner's website at http://www.gartner.com/....
Additional information on the outlook for data centre technology will be provided at the Gartner IT Infrastructure & Operations Management Summit 2012 taking place from 5 to 7 June at the Peabody Orlando in Orlando, Florida, and 12 to 13 June in Frankfurt, Germany. You can also follow the event on Twitter at http://twitter.com/... using #GartnerIOM.
For further information about the Gartner IT Infrastructure & Operations Management Summit 2012 taking place 12 to 13 June, in Frankfurt, Germany, please visit www.gartner.com/eu/iom.
Additional information about the Gartner IT Infrastructure & Operations Management Summit 2012 taking place from 5 to 7 June at the Peabody Orlando in Orlando, Florida, is available at http://www.gartner.com/....
About Gartner IT Infrastructure & Operations Management Summit 2012
The traditional “walled garden” approach of IT infrastructure & operations (I&O) of delivering and managing services will fall short of business expectations. I&O will have to re-invent itself into a service broker to provide agility, lower cost and drive efficiency in the business. The Gartner IT Infrastructure & Operations Management Summit 2012 will provide advice on how I&O can continue to stay relevant to the business, by harnessing and channelling the power of social networks, cloud and mobile computing to deliver and managed end-to-end services in a rapidly changing multi-sources environment.
