World’s 1,200 data centre operators fight for $48bn revenues – data economy

Equinix and Digital Realty retain global leaders title for 2016, but industry top 20 is expected to change with entrance of ‘edge’ markets in the race.

According to 451 Research’s Datacenter KnowledgeBase (DCKB) quarterly release, the sector is in an exponential growth spiral with revenues in 2016 having grown from 2015’s $27bn to $28.9bn in the first three quarters of the year alone.

In 2016, 4,500 data centres, operated by 1,193 companies accounted for 132.4 million sqf to 176.5 million sqf. Qmobile data recovery This is also predicted to grow exponentially.

“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 completing its acquisition of Telecity Group, Tierpoint buying Windstream and Digital Realty Trust taking on eight of Equinix’s European datacenters, among many other deals,” it reads on the release.

In terms of annualised colocation and wholesale revenue, as of Q3 2016 Equinix and Digital Realty remained the global leaders, with 9.5% and 5.7% share, respectively.

Once the Equinix acquisition of Verizon’s data centre business closes in mid-2017, Equinix market share is expected to expand to 11.4% of global annualised revenue, equivalent to double that of the second-largest provider, Digital Realty Trust.

Analysts also highlighted a growing trend in the market that is propelling expansion of services in ‘edge’ markets outside of the global top 20.

Leika Kawasaki, Senior Analyst, Datacenter Initiatives at 451 Research, said: “Interest in edge markets is one of the factors driving consolidation.

“Over the next one to two years, we expect to see growing interest from top providers and investors in markets outside of the top 20, particularly in Asia and Latin America.”

Public cloud is becoming more of an option for enterprises looking to outsource their data centre needs instead of building out their own server rooms.

Enterprises’ hybrid cloud migrations to Infrastructure-as-a-Service (IaaS) business models is driving the market cap up to record levels and opening new business revenue streams for telecommunications providers.

According to Pyramid research, the IaaS market in Latin America will grow at a 26% CAGR from 2016 to 2021, generating $9.3bn in cumulative revenue for the period.

To address the growing IaaS opportunity in Latin America, the ” IaaS Market in Latin America: How Telcos are Addressing the Iaas Opportunity in the Region” report says that telcos can leverage up-selling strategies, taking advantage of their data centre customer base, supporting enterprises in migrating their traditional hosting infrastructures to cloud IaaS environments.

“Nevertheless, telcos have to overcome some challenges in this area, mainly the strong competition from traditional IT service providers and pure-players, such as AWS and IBM,” the report says.

The report highlights: “Telcos possess the data centre infrastructure and capacity, and the fact that they own the network necessary to deliver cloud services, are key advantages to position themselves in the IaaS market.”

According to the USA Department of Commerce, Brazil has the largest computing services market in Latin America followed by Mexico, Chile and Argentina.

According to Microsoft, globally, 88% of organisations today use the public cloud in some capacity, with 82% currently using a hybrid cloud strategy.

North America hit in 2016 a new record for the largest amount of built-out colocation space in turn-key multi-tenant data centres (MTDC) the region has ever seen.

The region counted last year with nearly 2,000,000 sqf and 210.8 MW of power, according to the Data Center Real Estate Review released by North American Data Centers (NADC), a national brokerage firm focused on the data centre market. No 1 data recovery software In addition, over 1,000,000 sqf were being built at the end of 2016.

This compares to nearly 1.75 million sqf in 2015 (195.1 MW), and around 1.70 million sqf in both 2013 and 2014, with 183.6 MW and 189 MW of power respectively.

Interestingly, in 2012 there was more turn-key space built-out in MTDCs than in 2013, 2014 and 2015. Data recovery iphone free That year, the value was just above 1.80 million sqf and power accounted for more than 2016, at 215.6 MW.

The document, authored by NADC Managing Principal Jim Kerrigan, reveals that Santa Clara (CA), Dallas (TX), Ashburn (VA) and Chicago(IL), all in the USA, accounted for more than 80% of 2016’s leasing.

Large cloud providers shifting from speculative leasing to pre-leasing during the past 15 months have been a welcome occurrence to the overall MTDC market.

As a consequence of the global trend towards digitalisation, the construction of subsea cables has also accelerated. Database 11g More subsea cable was laid during 2016 than the last five years combined.

It reveals that after a strong 2016, REIT stocks focused on data centres will see a short-term setback related to rising interest rates but should otherwise rally during 2017 due to overall demand.

The review alerts that data centre lessees will continue to struggle in 2017 with weighing the benefits of signing capital leases versus operating leases and trading term for flexibility.

This will be particularly impactful on companies as they implement the Financial Accounting Standards Board (FASB) new lease accounting standards.

“In addition, there will be an influx of properties that have densities ranging from 100/kW to over 300/kW. Data recovery thumb drive Currently available are N+1 and 2N solutions with higher densities,” it reads.

A decrease in rental rates on renewals may be offset by new tenants paying higher rates versus Power Based Buildings (PBB) rates during 2017 and 2018.

The Veeam Cloud & Service Provider (VCSP) program, which provides service providers with Disaster Recover as a Service (DRaaS) and Backup as a Service (BaaS) capabilities, reported 79% YoY revenue growth for FY 2016.

The VCSP program has expanded to more than 14,300 service and cloud providers worldwide, with more than 2,600 of those partners licensed to provide services for Veeam Cloud Connect.

Veeam’s product highlights for 2016 include the announcement of the next generation of Availability, Veeam Availability Platform for Hybrid Cloud. Data recovery hardware tools The platform provides Availability for the Hybrid Cloud with virtual, physical, and cloud-based workloads.

The company also released Veeam Availability Suite 9.5, with more than 175 new features designed to deliver enhanced agility and flexibility by ensuring 24.7.365 availability of all workloads and applications on-premises or in the cloud.

Peter McKay, Veeam’s president and COO, said: “As organisations work to digitally transform every aspect of their business, CIOs are quickly coming to realise that these IT investments will not be worth much if they cannot guarantee that they will be ’Always-On’.

“We have seen incredible growth in demand for the Veeam Availability Suite from all sectors of the market, but especially from the Fortune 500 and Global 2000.”

Veeam is hosting its main event, VeeamOn 2017, in May, in New Orleans, US, where the company is expected to make announcements around new products and expand on the company’s roadmap towards the $1bn revenues.

Speaking to journalists in Kuala Lumpur during a briefing on the nation’s data centre market, director of digital enablement Wan Murdani Wan Mohamad at MDEC also said revenues from international clients subscribing to Malaysia’s data centres had increased from 5% to almost 20% over the last few years, according to local media organisation The Star.

He said: “We do not have a big data centre yet in Malaysia, apart from those owned by Nippon Telegraph and Telephone Corp. Os x data recovery We are looking at more than three international companies in the future.

“We are also looking at about RM1.3bn ($291.3m) worth of investments from foreigners in the short term and hope it would increase to RM5bn ($1.2bn) in a few years, when they set up proper data centres in Malaysia.”

Also speaking to the media, Tan Tze Meng, head of cloud and data centres department and the digital enablement division at the MDEC, said the growth of the data centre industry and cloud in the country is mainly due to connectivity, land, energy, ease of doing business, and water.

He said: “Malaysian data centres spend from 20%-25% of their operational costs on bandwidth, compared to less than 5% in Singapore, Hong Kong, Japan, the United Kingdom and the US.”

As a direct consequence and business creator for the data centre space, the MDCE also predicts the data service sector to grow between 10 to 15% in the coming years.

Mohamad spoke specifically of one of the projects being the intention of the MDEC to invite more foreign companies into the country to subscribe to services provided by the local operators, as well as through foreign direct investments (FDIs).

He said: “Besides providing incentives, MDEC also has a few programmes to up-skill the capability of local players, while providing market access to higher valued customers.

“We have seen the traction in our various programmes, with positive growth in the number of foreign companies subscribing to local data centres services.”

In the colocation space, Malaysia counts with 28 hubs, while countries such as Japan, China and Australia count with 40, 74 and 102 respectively.

However, the country is ahead of others in terms of the number of colocation facilities, including Vietnam (8), Thailand (14), South Korea (14) or the Philippines (2).

According to the Malaysia Data Centre Association, Outsourcing Malaysia and the Malaysian Investment Development Authority, data centre space in Malaysia accounts today to 500,000 sqf. R studio data recovery download This is expected to scale to five million sqf by 2020.