[March 24, 2017] |
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Data Center Colocation Market in APAC - Drivers and Forecasts by Technavio
Technavio
market research analysts forecast the data
center colocation market in APAC to grow at a CAGR of more than 16%
during the forecast period, according to their latest report.
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Technavio has published a new report on the data center colocation market in APAC from 2017-2021. (Graphic: Business Wire)
The market study covers the present scenario and growth prospects of the data
center colocation market in APAC for 2017-2021. The report also
lists retail and wholesale as the two major segments based
on type of colocation, of which the retail segment accounted for close
to 79% of the market share in 2016.
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Technavio's sample reports are free of charge and contain multiple
sections of the report including the market size and forecast, drivers,
challenges, trends, and more.
Technavio ICT
analysts highlight the following four market drivers that are
contributing to the growth of the data center colocation market in APAC:
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Increased adoption of cloud and IoT technologies
-
Reduction in capital and operational expenditure
-
Availability of advanced network connectivity
-
Increased support from governments
Increased adoption of cloud and IoT technologies
According to Abhishek Sharma, a lead analyst at Technavio for data
center research, "The significant increase in internet
traffic over the past five years, has also increased the need for the
enterprises to operate through technologies such as cloud and big data."
Owing to the increased adoption of advanced technologies for business
operational nees, enterprises in APAC are prompted to expand their data
center footprints. The main contributors to the increase in data centers
include CSPs, telecommunication organizations, and colocation service
providers. The increased demand for retail colocation spaces in
APAC is witnessed through higher investments in data center construction
by colocation and telecommunication service providers such as NTT, China
Telecom, China Unicom, China Mobile (News - Alert), Equinix, Global Switch, and others.
Reduction in capital and operational expenditure
Business operational demands are growing among enterprises in APAC,
which is leading to an increase in data center construction
activities. The construction and operation of data centers involve high
capital expenditure. With the inception of colocation, enterprises with
less need for data centers can colocate space from the existing
data center operators. Data center colocation reduces the need for
capital investment that is involved in the construction of data centers.
Many SMEs with lower IT budget will also be able to operate through data
centers, enabling higher availability for the services offered.
"In addition, the vendors offer uninterrupted services and
maintenance of data center facilities, which increases the productivity
and performance of the enterprises," says Abhishek.
Availability of advanced network connectivity
Enterprises are witnessing a rapid increase in the digital content
transmitted and manipulated in their networks. The adoption of colocation
services makes it easier for enterprises to manage network dynamics,
control traffic flow, and scale up data center infrastructure
efficiently.
Many enterprises in APAC also require better interconnection to public
and private cloud environments operated by the CSPs.
Interconnections also enable better connectivity and higher availability
of services as demand grows. Colocation providers such as Equinix (News - Alert)
and Digital Reality enable interconnectivity between their
facilities in APAC and extend it to the major cloud data centers to grow
their customer base.
Increased support from governments
In APAC, many colocation providers and CSPs are being welcomed by the
respective governments to establish their facilities as it will
facilitate the growth of their countries' economies. For example, the
Thai government supports data center investment from SUPERNAP, which
aids in growing the digital economy, while encouraging more investment
in the future. Most of the countries in APAC welcome foreign investments
from colocation providers. This aids in overcoming the increased
need for IT operations for local customers as well as social media
platform operators such as Facebook (News - Alert).
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About Technavio
Technavio
is a leading global technology research and advisory company. The
company develops over 2000 pieces of research every year, covering more
than 500 technologies across 80 countries. Technavio has about 300
analysts globally who specialize in customized consulting and business
research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research
techniques to ascertain the size and vendor landscape in a range of
markets. Analysts obtain information using a combination of bottom-up
and top-down approaches, besides using in-house market modeling tools
and proprietary databases. They corroborate this data with the data
obtained from various market participants and stakeholders across the
value chain, including vendors, service providers, distributors,
re-sellers, and end-users.
If you are interested in more information, please contact our media team
at [email protected].
View source version on businesswire.com: http://www.businesswire.com/news/home/20170324005494/en/
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