A new report from consultants BroadGroup, forecasts that revenues
for Data Centers in the countries surveyed will more than double 2003
levels and reach 745 million euros by 2007.
The report, Data Centres
Europe, records that most of the companies interviewed had turned cash
positive – more than a third during 2004, and is now entering a period
of market maturity. Importantly, new and differentiated products and
services are shifting the business model away from basic colocation and
Growth is being fuelled by a number of factors
including a broadening of customer base, the provision of managed
services, regulatory requirements in the financial services sector, and
new conditions emerging for investment in a market that is, in contrast
to the US, sufficiently tight to expand. Business continuity and
disaster recovery appeared as major concerns for end users.
report also identified a key shift towards utility computing. However
only a small number of Data Centers had so far invested in blade
servers, the technology leap required to open new markets in which Data
Centers were previously unable to compete.
London continues to be
the main hub in Europe, and where prices continue to rise, but the
report identified other cities where Data Centres will increase in
scale and capabilities over the next twelve to eighteen months. In the
longer term, where Data Centers are short of space, dark fibre links
will be used for connection between centers and cities.
is evident from the research is the degree of complexity that now
exists for customer, and services segmentation. Data Centres are
confronting new challenges in creating value added and ÃƒÂ¢Ã¢â€šÂ¬Ã‹Å“sized’ services
for an increasingly diverse customer base. With the majority of Data
Center stock being 4-5 years old, and the introduction of transforming
technologies, the industry is facing a further period of change.
of the future concern of Data Centers will focus on power, security,
infrastructure and connectivity. The main cost pressure affecting
companies interviewed is raw electrical power. Carrier neutrality –
where the Data Center is able to offer more than three independent
connection routes – is favoured and operators are able to charge
premium prices. Space too is a major issue and the report examines the
current status across cities in Europe.
The report views managed
services as a major opportunity for Data Centers, but suggests
competitive rivalry could emerge with integrators, who hold strengths
in customer relationships and architectural solutions. InterXion and
IBM featured as the two most frequently quoted competitors of other
players in the research.