Managed data center services comprise of managed hosting, colocation, and storage services, among others and is managed and monitored from a third-party data center service provider. Managed data center services market is expected to witness exponential growth over the next five years on account of growing number of data centers worldwide.
By Enterprise Size
By enterprise size managed data center services market is segmented based on small, medium, and large enterprises. The requirements of these enterprises can vary from a small rack space to leasing to complete data centers. Today, more and more companies are adopting cloud solutions, and SMEs using colocation services on account of lack of IT budget to build and manage their own data centers, rising adoption of BYOD program, and growing use of cloud computing solutions. Large enterprises are using their own data centers due to privacy and security concerns supported by availability of capital, due to growing volume of data opting data centers services is becoming an attractive source as it reduces excess operational budgets. Cloud and Virtualization has transformed the way businesses operate across small enterprises. Focus on cost-efficiency and competitiveness has augmented the demand for data center services. The data center service providers too have started focusing on this segment, which is expected to witness fastest growth over the next five years. Colocation need for security, compliance, and mobility will continue to create the need for colocation space by small enterprises. There has been a rise in the number of small enterprises worldwide owing to the supportive government policies and initiatives in the past recent years
By Industry Vertical
By industry vertical, the global managed data center services market is segmented as banking and financial services, manufacturing, communication and technology, healthcare, energy, education, government, media and entertainment, Others. The steady improvement in the proportion of the banked population coupled with the growing digital data in the financial institutions in the developing countries like India and China is leading to growth of the global data center services market for BFSI. Traditionally, banks and financial institutions have been running and operating their own data centers but, with the advancement in technologies, and high adoption of cloud computing solutions, while focusing on keeping the infrastructure costs low, cloud services has become an imperative for financial enterprises considering latest hardware and software solutions, which can handle complex data sets and analyse them while maintaining the privacy of their customer data.
In addition, remote healthcare, digitization of healthcare records, regulatory requirements, and penetration of IT in healthcare sector has created need for infrastructure which can meet these mounting challenges for the organizations. This has resulted in explosion of data, which has necessitated the IT professionals in the healthcare industry to focus on implementing meaningful technological solutions to improve patient care at lower operating costs. In addition, Burgeoning demand for online education is propelling the growth of data center colocation market. In other industries, players are investing in new data centers and expansion of the existing data centers so as to hold their position in the market. For an instance, in February 2018, Oracle invested in 12 new data centers to reposition itself as a cloud infrastructure company. Furthermore, increased enforcement of HIPAA (Healthcare Insurance Portability and Accountability Act of 1996) security is compelling healthcare organizations to upgrade data security and disaster recovery protocols. Furthermore, the focus on reducing the cost of operations is leading to the growth of global data center services market trend in the ICT industry.
May 2018, SAP launched the public cloud data center in Saudi Arabia in order to support cloud-based digital solutions that accelerate competitiveness and transformation in the country.
March 2018, Du-an Emirates Integrated Telecommunication Company, entered into a strategic partnership with Epsilon to connect the United Arab Emirates and major data centers in United States, Europe, and Asia.
January 2018, Israel based Global Data Center announced its plans to double the size of its data center facility in Herzliya from 24,220 sq. ft. to 48,440 sq. ft., and in April 2019, has completed the said plan. The facility’s expanded area has also already been filled with IT infrastructures of both existing and new clients.
Geographically managed data center services market is segmented based on North America, South America, Europe, Middle East and Africa, Asia Pacific. European region is expected to hold significant share in the market on account of presence of major market players coupled with the early adoption of technology. In United Kingdom, the advent of Brexit is likely to increase the cost of operations for businesses, the companies are increasingly opting for managed data center services solutions that allow them to save cost on storing data internally. The adoption of the cloud-based services including storage and network by the public sector in the country like France has been relatively slow on account of decentralized nature of IT within the government that makes it difficult for all the public authorities to simultaneously move in the same direction. However, in the private sector, the enterprises have been increasingly using the managed data center services as the companies push for green IT solutions leading to a more cost-effective operation.
In addition, in July 2018, Econocom Group SE launched Econocloud in France allowing the companies to externalize their IT production with compliance to France and Europe data protection laws. Moreover, the number of the digital data used on the smartphone has been significantly increasing, providing an opportunity for the managed data center services service providers to generate revenues as the data is being increasingly stored on the cloud which allows the users to access data from different devices. Furthermore, market also witnesses significant number of acquisition and strategic partnerships between the major market players which is anticipated to boost the managed data center services market growth over the forecast period. For instance, in May 2018, Iron Mountain acquired Netherland’s EcoSwitch which is a global brand and provider of multi-tenant data center space operating one of the largest colocation facilities centers in the MRA (Metropolitan Region Amsterdam) for $235 million.