australia data centre service market 2012

Australia Data Centre Services Market 2012Australia Data Centre Services Market 2012

Growth opportunities for most service providers as Growth opportunities for most service providers as rate of data centre outsourcing and space stimulate rate of data centre outsourcing and space stimulate

demanddemand

© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of

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Mayank Kapoor, Industry Manager

Data Centre and Cloud Computing

ICT Practice

23rd May 2013

@Cloud_Analyst

Focus Points

Market Definitions1

Market Overview2

Market Size and Forecasts3

2

Market Size and Forecasts3

Competitive Landscape4

Emerging Trends5

Market Definition

Data Centre Services Market: Definition of Co-location, Managed Hosting and Value-added Services (Asia Pacific)

Service Level

OS

Application

Business Process

3

Source: Frost & Sullivan analysis.

Co-locationPure rental of data centre floor space, cage,

or empty racks with basic power, cooling, and bandwidth

Managed HostingRental of servers with basic services such as

Monitoring and System Reboot

Price Chargeable to Customers

Infrastructure

Network

Server

OS

Market Overview

AustraliaAustralia isis oneone ofof thethe mostmost advancedadvanced datadata centrecentre marketmarket inin thethe AsiaAsiaPacificPacific regionregion..

ItIt hashas attractedattracted significantsignificant investmentsinvestments fromfrom globalglobal players,players, suchsuch asasEquinixEquinix,, GlobalGlobal Switch,Switch, DigitalDigital Realty,Realty, etcetc..

4


MarketMarket isis currentlycurrently witnessingwitnessing significantsignificant datadata centrecentre buildbuild outsouts acrossacrossthethe countrycountry toto meetmeet risingrising demanddemand..

TheThe riserise inin demanddemand isis attributedattributed toto strongstrong growthgrowth inin datadata usage,usage, thethedemanddemand forfor locallocal datadata centres,centres, andand thethe increasingincreasing propensitypropensity ofofAustralianAustralian organisationsorganisations toto outsourceoutsource theirtheir datadata centrecentre operationsoperations..

Market Overview (Cont’d.)

25%

31%

Yes - We use an external data centre provider (ie we outsource)

Yes - We operate our own data centre in-house

Data centre usage trends

5


20%

24%

No - we don't use data centres at all

Yes - we use a combination of both

provider (ie we outsource)

N = 150


Reasons for outsourcing data centre

25%

30%

42%

55%

Superior disaster recovery

Managing it internally is becoming too complex

Better security

Costs savings

6


N = 150

11%

11%

24%

24%

25%

Better regulatory compliance

Provides an end-to-end solution that better meet our needs

High availability of outsourcing providers

Don't have skill set available to host in-house

Can better managingexponential growth of data available


Major challenges in running a data centre

3.35

3.38

3.41

3.42

3.49

Network latency

High energy consumption

Managing the exponential growth of data available

Implementing and managing a virtual infrastructure

Securing the applications & data protection

7


3.13

3.18

3.24

3.26

3.34

3.35

Running out of rackspace

Poor cooling

Running out of storage

Lack of visibility into data centre assets & performance

Lack of skills / resources internally

Rising IT costs

Market Size and Forecasts

Focus on value for money in IT expenditure

Need to create business redundancy

Enhancements in enabling infrastructure

8


Increasing data centre complexity

Increasing costs – CapEx and OpEx

Need to retain talent

State level data sovereignty concerns

Market Size and Forecasts

504.9595.6

1,530.7

9


2011 2012 2019

Managed Hosting 155.1 183.4 518.3

Co-location 349.8 412.2 1,012.4

504.9

Competitive Landscape

Facility Pure-plays

Carrier Neutral Telecoms/ Carriers

Strength Infrastructure/

facility management

Focus on data

centre services

Connectivity and

bundling capability

10


Services Mostly co-location Co-location and

Managed Hosting

Co-location,

Managed Hosting

and VAS

Customer Focus

Low focus ->

Medium focus All Levels Medium focus ->

High focus

Emerging Trends

Em

erg

ing

Tre

nd

sE

merg

ing

Tre

nd

s

Demand for pure low-end co-location services will decline

Data centres with latest cooling technologies and power specifications will garner bulk of enterprise demand

11


Em

erg

ing

Tre

nd

sE

merg

ing

Tre

nd

s Managed data centre services will grow at a higher rate than co-location

Global players to expand Australia presence and expand beyond Sydney and Melbourne

Australia Data Centre Services Market 2012 Australia Data Centre Services Market 2012 –– Research Research

ServiceService

Qualitative Data

• Market Drivers and Restraints for Data Centre Services

• Data Centre Services Market Trends

• Cloud computing to create new

Quantitative Data

• Market Overview• Data Centre Services Market Overview

• Market Sizing and Forecasting

• Data Centre Services Revenue

Growth opportunities for most service providers as rate of data centre outsourcing and space stimulate demand

12

• Cloud computing to create new challenges and opportunities

• Competitive Landscape

• Emerging Trends

• Data Centre Services Revenue

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Today’s Presenter

Mayank Kapoor, Industry Analyst

Frost & Sullivan

15

For any other enquiries, email us:

[email protected]

Mayank has more than 6 years of research and analysis experience focused on the

Asia Pacific ICT market. As the Lead Analyst for Data Centre Services and Cloud

Computing, he focuses on monitoring and analyzing emerging trends, technologies

and market behavior in the Data Centres, Virtualization and Cloud Computing markets

in Asia Pacific.

australia data centre service market 2012

Technology

data centre3

frost sullivan analysis

forecasting data centre

outsourcing data centre25

external data centreprovider

market overview contd

dont use data centres

basic services