Digital Lifescapes

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe...

Cloud computing infrastructure is moving out to the edge of enterprise networks as more organizations explore ways to re-engineer their architecture in support of new and emerging information technology (IT) use cases. Managed cloud edge services will become a high-growth market as enterprises look for low-latency edge services to address process efficiencies, support new applications, comply with data sovereignty, and deal with IT security threats. According to the latest global market study by International Data Corporation (IDC), worldwide revenues for managed edge services will reach $445.3 million in 2021 -- that's an increase of 43.5 percent over 2020. Over the 2021-2025 forecast period, the compound annual growth rate (CAGR) for managed edge services will be 55.1 percent. Managed Edge Services Market Development Given the nascent demand for managed edge services, a wide range of IT service providers and business technology vendors are looking at this market as the next big r...

Large enterprises continue to move some of their IT data center infrastructure to colocation facilities. That said, there was more vendor consolidation activity during last year, as a few key players decided to reduce their presence or totally exit the market. According to the latest worldwide market study by 451 Research, the global colocation and wholesale market revenue will top $48 billion by 2021 in its latest quarterly release of the Data Center KnowledgeBase (DCKB), which tracks nearly 4,500 data centers operated by 1,193 companies worldwide. Colo Data Center Market Development In Q3 2016, the data center colocation and wholesale market gained $28.9 billion in annualized revenue. The majority of this revenue (42 percent) was generated in North America, with Asia-Pacific generating 31 percent. Following a year of significant M&A activity in 2015, the first three quarters of 2016 maintained the momentum with notable industry consolidation that included Equinix completi...

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...

Multinational company CEOs have approved large investments in regional data centers, because they were told it was a requirement. This is what a typical legacy IT organization does with their budget -- they build, operate and maintain facilities that house computing systems. These CEOs believe that data center facilities are wise investments. They're convinced there are compelling reasons why owning these expensive assets is beneficial to their business goals and objectives. There are some industries where this practice is commonplace. Meanwhile, other senior executives have followed the guidance of forward-thinking CIOs or IT managers that choose to house some or all of their corporate computing systems within the shared facilities of service providers. Collectively, these providers have built numerous  colocation centers around the globe. As more companies review their IT investment strategies and follow the path to adopting colocation facilities, several key tends have em...