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
Veeam marks record growth in 2018 to almost 1 billion Euro worth turnover

VeeamSoftware, the leader in intelligent data management for Hyper-Available Enterprise , marks the 39th consecutive quarter of growth , 21 per cent more than last year. Overall, the financial performance for 2

 Read Full article »
Atos ranked in Top Five for Managed Security Services, Worldwide by Gartner

Atos, a global leader in digital transformation today announces that it has been ranked amongst the top 5 global players in Managed Security Services (MSS) in terms of 2017 market share revenue, according to th

 Read Full article »
Endava has been selected as an official AWS Well-Architected partner

Further strengthening its partnership with Amazon Web Services, Endava reinforces its Cloud services expertise and capabilities becoming an AWS Well-Architected Partner, the company announced.

 Read Full article »
Smartree Romania has a new operational director

Smartree Romania, providing HR services on the Romanian market names Anamaria Borza as the new operational director of the company, effective July, 1 this year. The new manager of Smartree team occupied the pos

 Read Full article »
ABSL Romania: Sibiu, a continuously evolving market, with great potential

Sibiu is a market with huge potential and constantly expanding, is one of the conclusions from "Outsourcing in 2018. Best Practices in Technology Adoption" conference, which was dedicated to the local business

 Read Full article »
Accenture assigns 200 mln. US dollars to digital age-focused education, training and skills initiatives in the next 3 years

Supporting its vision to improve the way the world works and lives, Accenture (NYSE: ACN) is committing more than 200 million US dollars over the next three years to help equip people around the world with job

 Read Full article »
Oracle: Customer connection missing as manufacturers yet to produce rewards from industry 4.0

Research of global manufacturers developed by Oracle with research company Coleman Parkes shows initial Industry 4.0 focus has been on internal changes rather than removing supplier, distributor and customer si

 Read Full article »
Nine solutions for smart cities delivered at Code4Cluj hackathon of Endava

The Code4Cluj hackathon organized by Endava at Cluj-Napoca between 18-20th of May generated 9 innovative projects meant to solve the problems faced by the community and citizens of Cluj.

 Read Full article »
Zitec's digital marketing division registered an increase of over 40 per cent last year

Zitec, a major provider of business solutions, digital services and personalized technology products in Romania, announced it registered an increase of over 40 per cent in the digital marketing segment in 2017,

 Read Full article »
Fab Lab Iasi issues the Report on Coworking in Central and Eastern Europe

This report was conducted by the PIN Maps teams (Iasi's modern office map, an impact initiative for the IT & Outsourcing industry) and Fab Lab Iasi (a 700 sqm coworking space, opened in 2017).

 Read Full article »
 
 
MOST READ ARTICLES
» Committed to growth
» The Outsourcing industry announces its...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Zitec's digital marketing division reg...
» PwC: The competitive advantages of Rom...
» Luxoft expands Asia Pacific presence w...
» EXCLUSIVE: ABSL Timisoara - BPO and SS...
» How giving back pays dividends for com...
» Olga Botusan, Stefanini: There is a hu...
» Societe Generale-European Business Ser...
 
EDITOR CHOICE
Andrei Romanescu CEO, VEEAM, on the importance of people skills and leadership forming

Within the recently ended OT Learning & Development roundtable edition, Andrei Romanescu CEO, VEEAM stated that he trends of the current and following years underline the importance of people skills and leaders

 Read Full article »
OT Learning & Development: About capitalizing on self-willingness to reach performance

How to succeed in reaching the young and the valuable employees and wining their hearts and minds, so they will forever be committed to gain knowledge, evolve in profession and build a strong career inside the

 Read Full article »
OT Learning & Development now, about digital transformation, facilitating a culture of change and innovation

Some trends are here to stay, while some other may not. How about gamification, chatbots, microlearning, data analytics, mobile learning, augmented reality and others? Today's edition of OT Learning & Developme

 Read Full article »
The need of the industry to stay effective and relevant

In the current context of machinery and AI helping on operational processes of a company, with extended applicability in terms of capabilities, the digital context in which professionals, organizations and busi

 Read Full article »
We meet again at OT Learning & Development on June 7th

The Second Edition of OT Learning & Development roundtable will be held on June 7, 2018 at InterContinental Hotel Bucharest. The event brings together the business services professionals to discuss and discover

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