Skip to main content

Upside for Data Center Hosting and Managed Services

More multinational IT data center users are leasing space in various regions around the globe, partly due to data sovereignty requirements that are imposed by local government regulators. According to the latest market study by 451 Research, the worldwide colocation market will reach $33.2 billion by 2018.

In the fourth quarter 2015, the data center colocation market realized $27 billion in annualized revenue. The majority of this revenue (54.6 percent) continues to be derived from local providers with sub-$500 million in annualized colocation revenues.

"2015 was a record year for the data center, hosting, and managed services sector, with the highest number of deals since we began tracking it. But there are still hundreds of data center providers around the world that will continue to consolidate, either to gain scale or add services or both," saidd Kelly Morgan, research director at 451 Research.

Colocation Market Leaders Drive Growth

According to their analyst's assessment, the move to cloud computing continues to drive strong demand for leased data center space. Moreover, the industry is maturing, and regional service providers are becoming more strategic in their approach to customer needs.

Among the largest providers, Equinix is the market leader in the combined wholesale and retail colocation market with a share of 8.1 percent of global annualized wholesale and retail colocation revenue.


Digital Realty, primarily a wholesale provider, is the second largest supplier in terms of revenue at 5.6 percent, but leads the global market in terms of operational square feet with a 7.8 percent share globally.

451 Research estimates that the global colocation market will grow -- in terms of total operational data center space -- from today’s 132.4 million square feet to 176.5 million by the end of 2018.

Regional Market Development Opportunities

451 Research believes that colocation is quickly becoming the nexus of both cloud services and enterprise IT. The colocation market is serving as a data center host to both large enterprises and foreign cloud service providers. In this process, colocation is often becoming the strategic connection point between the two.

451 Research estimates that today, the world's largest region in terms of total operational space for colocation is Asia Pacific (40.1 percent). Growth in APAC has been fueled by the sheer size of the economy and a less entrenched installed base of enterprise facilities with which colocation providers must compete.

In addition, some Asian countries have been supporting their colocation industries with special zones and tax treatment. North America is second largest with 33.7 percent of total, global operational square feet, while Europe, Middle East and Africa accounts for another 22.1 percent. The remaining 4.1 percent of space is in Latin America.

Popular posts from this blog

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun

Secure Digital Workspace Apps Enable the Future Enterprise

In early 2020, as the world responded to the COVID-19 pandemic disruption, many organizations were forced to rapidly transform their communications networks and IT infrastructure to support an unprecedented shift to remote work. Before the pandemic, approximately 38 percent of employees were remote full-time or had a flexible work arrangement where they split time between home and office locations. During the pandemic, the percentage of remote workers that CIOs had to support reached almost 72 percent. Future Enterprise Technology Market Development Enterprise leaders have been forced to adapt to a new state, shifting from traditional office-based operations to distributed workforce environments that must still provide the same level of connectivity, security, and efficiency across the organization. According to the latest worldwide market study by International Data Corporation (IDC), addressing connectivity across geographies and transforming networks to become more virtual and agile