- Increased spending on cloud data centres
- Increased use of big data analytics
- The growing Internet of Things (IoT)
- The need for colocation and managed service data centres
Many cloud service providers (CSPs) construct cloud data centres that cost up to billions of dollars to offer cloud-based services to end-users and enterprises. These CSPs include AWS, Microsoft Azure, and Google Cloud. Growing SMEs prefer to run their business operations through CSPs, colocations, and Web hosting cloud data centres due to benefits such as scalability, reliability, and cost reduction.
CSPs such as AWS, Microsoft, and Google operate more than 100,000 servers worldwide to meet the increasing business demand. The rise in demand has necessitated the need for automation in cloud data centres. Many cloud data centres are termed as mega data (hyperscale) centres, which consume large quantities of power during peak data-intensive operations. Enterprise spending on cloud data centres was US$38 billion in 2015, and it is expected to reach US$75 billion by 2020 at a CAGR of around 14.57%.
Increased use of big data analytics
Most business- and consumer-based applications generate large amounts of structured and unstructured data. They also use sensors that can generate massive amounts of data within a short time. Collected data are of high volume, velocity, and variety. Big data analytics helps to understand this data and make business decisions based on them.
The spending on big data infrastructure in data centres was valued at around US$15 billion, and it is expected to grow to US$25 billion by 2020, growing at a CAGR of 10.76%.
According to Rakesh Kumar Panda, a lead analyst at Technavio for data center research, “Big data analytics facilitates faster analysis and better utilisation of computing resources. For predictive and consumer analytics operation of big data sets, enterprises are procuring high-performance computing infrastructures in data centers. Big data infrastructure spending includes compute, storage, and network and infrastructure software.”
Growing IoT
The number of Internet-connected devices is estimated to reach around 30 billion by 2019, which will give a major boost to the global data centre market. The use of RFID sensors to tag, track, connect, and read objects in logistics and warehouses in the late 1990s popularised the concept of IoT. The growing number of connected devices will lead to the generation of large blocks of data. Ideas such as a connected car, connected home, connected health, and smart cities are gaining popularity.
Many industries such as manufacturing, utilities, retail, automotive, and social media are using IoT for increased data transfer. By 2020, IoT-enabled devices will increase the data centre traffic by around 40 times.
Need for colocation and managed service data centres
“An enterprise operating a colocation facility instead of building its own data centre can derive several benefits. Data centre colocation is a facility that rents computing servers, storage, and network. It minimises the utilisation of power and bandwidth and enhances the security of enterprise IT equipment,” Panda said.
The global data centre colocation market will grow at a CAGR of around 13% from 2015 to 2020.
The CAPEX associated with building, operating, and updating a data centre facility is reduced considerably in the case of a colocation facility. An enterprise considers several factors before the selection a colocation solution. Colocation facilities help SMEs to operate through modern infrastructure at reduced subscription costs. The number of these facilities is expected to increase over the forecast period.
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