Rise in Data Volumes and Need for Additional Data Center Capacity to Drive Internet Data Centers Market, According to New Report by Global Industry Analysts, Inc.

San Jose, California (PRWEB) July 05, 2012

Follow us on LinkedIn As centralized computer centers of businesses designed to store, archive, manage, and disseminate data and information, data centers in the modern digital information driven world are growing in importance. The criticality of data centers to business operations can be put into perspective by the fact that these centers house all critical operational, business and customer related data. The internets impact on data centers too has been huge, triggering data explosion as a result of faster, quicker, denser, and increased number of transactions. As a result, data centers have become bigger and larger making them the hummers of the information age. While some organizations prefer to create in-house data center infrastructure for ensuring information security, others outsource data center needs to external companies because of budgetary pressures. The current tough economic climate in the developed economies like in the United States and Europe, and subsequent need among companies to cut costs in managing data and its infrastructure, are throwing the spotlight on data center outsourcing. As a result, outsourced data centers, including Internet Data Centers (IDC), which offer several advantages, such as, zero maintenance, low upfront costs, and equally low upgrade and infrastructure costs are growing in prominence.

The surge in data volumes over the last few years has resulted in a massive data center crunch with companies scampering to address the issues with strategies, such as, buying of additional data center capacity. The strategy of buying capacity rather than building it in-house is resulting in the number of companies opting to use external data centers rise from 30% to over 50%. The growing scale of data overload and the fact that managing Big Data is poised to emerge into the toughest IT challenge for companies in the upcoming years, bode well for the future of global Internet Data Centers market. The current trend towards reducing the internal consumption of resources and dispensing the expensive yoke of IT administration, is paving the way to increased reliance on third party multi-sourced partners, thus driving business case for IDCs. With broadband internet changing the basics of computing, building of Internet data centers (IDCs), especially carrier independent and/or neutral IDCs, is a growing trend in the data center industry.

The IDC market endured the 2007-2009 recession with a deceleration in growth patterns as a result of corporate clampdown on IT budgets and the ensuing declines in new data center establishments and delays in data center expansions. New data center installations witnessed perceptible drops as business unit divestitures and corporate bankruptcies reduced data center needs. Efforts directed at simplifying the IT infrastructure also reduced data center needs. The deceleration was largely a knee-jerk reaction to the tough economic climate. The market, however, made a quick rebound in the year 2010 largely because of the fact that hosted style of internet data centers strikes the right chord among recession-hit enterprises, since moving IT resources to an outsourced model managed by a third party, provides cost benefits that cannot be undermined in a challenging economic climate. Improved and freer flow of capital during this period encouraged companies to invest, releasing pent-up demand and generating higher market gains. Focus on reducing the installed base of servers, enhancing energy conservation and emerging upgradation opportunities to lower energy alternatives, are all poised to benefit the market in the upcoming years. The high imminent number of upgrades in the offing as a result of rising storage requirements represents potential opportunities for IDCs.

As stated by the new market research report on Internet Data Centers, Asia-Pacific represents the fastest growing regional market, with annual service revenue from the region waxing at a CAGR of about 28.9% over the analysis period. Government sponsored investments in advanced broadband network and IT infrastructure build-outs have and will continue to lead to massive generation of digital data, which bodes well for the data center services market, including IDC services in the region.

Major players in the global marketplace include 21Vianet Group, Inc., Alestra S.A. de C.V, AT&T Inc., BT Global Services, CenturyLink, Inc., Cogent Communication Group, Inc., Compa??a An?nima Nacional Tel?fonos de Venezuela, Computer Sciences Corporation, Equinix, Inc., ALOG Datacenters do Brasil SA, Level 3 Communications Inc., International Business Machines Corporation, Reliance Communications, Savvis, Inc., Quality Technology Services, LLC, and Verizon, among others.

The research report titled Internet Data Centers: A Global Strategic Business Report announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic corporate developments. The report provides market estimates and projections by annual service revenues (in US$ Million) for major geographic markets including the US, Canada, Japan, Europe (France, Germany, Italy, UK and Rest of Europe), Asia-Pacific, and Rest of World.

For more details about this comprehensive market research report, please visit


About Global Industry Analysts, Inc.

Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world’s largest and reputed market research firms.

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