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CCI
Wednesday, 08 July 2015 16:26

IaaS data centre growth is at 35-40%

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Europe will see continued growth in co-location and cloud over the next four years with IaaS taking the lions’ share

 

According to the latest Data Centre Europe report by Broadgroup, Europe now represents more than a quarter (27% )of the global market revenues for third-party data centres, and is poised for continued growth in co-location and cloud over the next four years.

The new European market leader is Equinix with a potential 9% of the market following its proposed acquisition of TelecityGroup – to be closed in 2016.

The report looks at co-location, hosting and cloud in 18 countries in Europe and profiles 16 major players in the market and finds that user procurement is evolving from a mix of property, facilities management and specific data centre input, to one “focused more on total cost of ownership, wider IT and cloud issues and power efficiency.”

At the same time, the report cites tremendous innovation occurring in the data centre, with enterprises concerned about the impact of these developments during the expected 15 year useful life of the facility. The report suggests that outsourcing to third-party data centres will be sustained and reach 40% of the overall market by 2019.

“We engage with many investors, and they typically still like the sector,” commented Steve Wallage, Managing Director of BroadGroup Consulting. “The co-location market retains good growth of 9-12% per year and impressive margins while hosting and infrastructure-as-a-service (IaaS), covered extensively in this report for the first time, will enjoy higher growth rates with IaaS at 35-40%.”

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