Latest News  

Spending on service provider data centers is booming


The data center is transforming -- modernizing to meet business demand as technologies such as software-defined architecture, cloud and virtualization take hold.

2016-01-08 10:26:52

This modernization is also being driven by CIOs and IT executives taking a hard look at their computing needs and asking whether they want to own and/or operate data centers any longer, industry experts quoted by CIO.com say.

It's a big issue. According to new research by Synergy Research Group, spending on enterprise data center equipment is static while spending on service provider data centers is booming.

New data from Synergy Research Group shows worldwide spend on cloud infrastructure services continues to grow at around 50% per year, requiring the leading cloud providers to invest many billions of dollars in expanding their global network of hyperscale data centers.

The top four cloud providers alone have some 110 data centers located in 20 different countries, most of which are huge facilities. Synergy expects their data center count to grow by 20% in the next twelve months, which will be in addition to expanding the capacity of existing facilities. Synergy has also identified well over $25 billion in recent data center-oriented M&A deals, with data center specialists like Equinix, Digital Realty, NTT and IBM leading the charge. The need to continually invest in expensive data center facilities is dramatically reshaping the IT industry, according to srgresearch.com.

And Gartner predicts that a software-defined data center's programmatic capabilities specifically regarding application programming interfaces and/or command line interfaces will be required for 75% of global 2000 organizations seeking to adopt modern IT approaches such as DevOps by 2020.
As the workloads companies are trying to support are increasingly linked to analytics and other data-intensive apps, those with data centers are facing a huge dilemma, observes Rick Villars, IDC's vice president of data center and cloud.

Customers are struggling over whether it is better for them to buy servers and storage and put it in their own data center to run, or if it makes more sense to buy infrastructure in a data center run by a vendor that can optimize the apps for the workloads they need, according to CIO.com.

The majority of data center square footage is still used by enterprises -- as opposed to service providers -- but that won't always be the case.

More and more companies are recognizing that they don't want to become service providers and they don't want to build a new data center, Villars says, noting that IDC frequently hears from clients that "this is not where our strategic investments should be spent."

At the same time, "most companies are saying ... we want to take advantage of converged infrastructures and solid state storage and virtualization to run those existing apps for a lower cost ... and do more with less,'' he says.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Companies leased 105,000 sqm of office space in Q1 2019, with IT&C players top stars in a tight labour market

The Bucharest office market debuted in 2019 with decent numbers: a gross take-up of 105,000 sqm, out of which the net take-up was 29,000 sqm, and 93,000 sqm of deliveries. Data from the real estate consultancy

 Read Full article »
Microsoft report: Romania registers average malware attack rate of 7.46 per cent, over European average

Romania reached a 7.646 per cent malware attack rate in 2018, 2.13 per cent higher than the average European rate, according tot eh 24th edition of Microsoft Security Intelligence (SIR), released recently.

 Read Full article »
Blockchain StartUp Swazm signs partnership with Maguay, one of the biggest server and storage suppliers in Europe

Romanian Blockchain company Swazm has signed a partnership with Maguay, one of the biggest server and storage suppliers in Europe. The objective of the partnership is to expand the Swazm blockchain network by u

 Read Full article »
Deloitte research: Learning, employee experience and leadership, the main topics on human capital agenda in Romania

Continuous learning for skills development, leadership development and improving the employee experience are the most important and urgent among the trends identified by Deloitte 2019 Global Human Capital Trend

 Read Full article »
Oracle: Shifting toward a whole-enterprise cloud

Cloud technology and its adoption have been transformative for nearly every business, industry, and product. From running applications that are always-on and available, to limitless infrastructure scalability,

 Read Full article »
CBRE takes charge of the operations of NEPI Rockcastle's office portfolio in Bucharest

CBRE, the world and local market leader in real estate consultancy, was mandated with the property management of NEPI Rockcastle's office portfolio in Bucharest, consisting of three emblematical buildings: Flo

 Read Full article »
KPMG launches an application enabling real-time feedback of employees and managers

KPMG launches an application enabling real-time feedback of employees and managers

 Read Full article »
ABSL GALA AWARDS celebrated its winners last evening at Bucharest

As the voice of the business services, ABSL has created the ABSL Awards with the purpose of recognizing the most innovative, impactful and valuable projects and initiatives of the business services industry ove

 Read Full article »
Medium-sized companies relocate from class B to class A-offices in Timisoara

The office market in Timisoara witnesses a new trend: the relocation of companies from class B spaces to class A and the increase in attractiveness of modern office projects for firms with less than 50 employee

 Read Full article »
PropTech Romania organizes a hackathon in Bucharest, dedicated to real estate industry

Proptech Romania, the first Romanian innovation platform dedicated to the real estate market announced it is organizing the first European Real Estate Hackathon, in Bucharest, on the 12-13 April, an event that

 Read Full article »
 
 
 
MOST READ ARTICLES
» Huawei opens a centre on cyber securit...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Romania ranks above EU average in gend...
» Bucharest, in the top of cities in Eur...
» Berg Software Romania: Reasons to outs...
» KPMG launches an application enabling ...
» Bogdan Pelinescu, president of ABSL: A...
» Meet the experts who will decide the w...
» ABSL GALA AWARDS celebrated its winner...
» Oracle reaches 4,200 employees and pla...
 
EDITOR CHOICE
Colin C. Lovering: Meet the speakers at Romanian Business Services Forum & Awards 2019, on May 7

Colin C. Lovering has been living and working in Romania since 2009 when he arrived to offer consultancy and advice to organisations looking for growth and profitability and founded Achieve International.

 Read Full article »
Antoniu Panait: Meet the speakers at Romanian Business Services Forum & Awards 2019, on May 7

Managing Director for VASTINT Romania since 2009, Antoniu Panait has an executive experience of more than 10 years, mainly in real estate.

 Read Full article »
Andrei Voica: Meet the speakers at Romanian Business Services Forum & Awards 2019, on May 7

Andrei Voica, Director Project Management and Workplace Consultancy, Colliers International. Truly passionate about his work and always eager to add value to each project.

 Read Full article »
Romulus Caralicea: Meet the speakers at Romanian Business Services Forum & Awards 2019, on May 7

Romulus is Wipro's Information Security, Risk & Compliance Lead for Europe. In his role he is managing internal audits and compliance activities for all clients and internal functions based on the corporate ISO

 Read Full article »
George Didoiu: Meet the moderator of Romanian Business Services Forum 2019 CEO LEADERS DEBATE, on May 7

In his 15 years of real estate, George Didoiu advised on the relocation of top IT&C, finance-banking and consultancy companies, which total over 10,000 employees.

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area | GDPR policy
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events