Latest News  

Spending on service provider data centers is booming


The data center is transforming -- modernizing to meet business demand as technologies such as software-defined architecture, cloud and virtualization take hold.

2016-01-08 10:26:52

This modernization is also being driven by CIOs and IT executives taking a hard look at their computing needs and asking whether they want to own and/or operate data centers any longer, industry experts quoted by CIO.com say.

It's a big issue. According to new research by Synergy Research Group, spending on enterprise data center equipment is static while spending on service provider data centers is booming.

New data from Synergy Research Group shows worldwide spend on cloud infrastructure services continues to grow at around 50% per year, requiring the leading cloud providers to invest many billions of dollars in expanding their global network of hyperscale data centers.

The top four cloud providers alone have some 110 data centers located in 20 different countries, most of which are huge facilities. Synergy expects their data center count to grow by 20% in the next twelve months, which will be in addition to expanding the capacity of existing facilities. Synergy has also identified well over $25 billion in recent data center-oriented M&A deals, with data center specialists like Equinix, Digital Realty, NTT and IBM leading the charge. The need to continually invest in expensive data center facilities is dramatically reshaping the IT industry, according to srgresearch.com.

And Gartner predicts that a software-defined data center's programmatic capabilities specifically regarding application programming interfaces and/or command line interfaces will be required for 75% of global 2000 organizations seeking to adopt modern IT approaches such as DevOps by 2020.
As the workloads companies are trying to support are increasingly linked to analytics and other data-intensive apps, those with data centers are facing a huge dilemma, observes Rick Villars, IDC's vice president of data center and cloud.

Customers are struggling over whether it is better for them to buy servers and storage and put it in their own data center to run, or if it makes more sense to buy infrastructure in a data center run by a vendor that can optimize the apps for the workloads they need, according to CIO.com.

The majority of data center square footage is still used by enterprises -- as opposed to service providers -- but that won't always be the case.

More and more companies are recognizing that they don't want to become service providers and they don't want to build a new data center, Villars says, noting that IDC frequently hears from clients that "this is not where our strategic investments should be spent."

At the same time, "most companies are saying ... we want to take advantage of converged infrastructures and solid state storage and virtualization to run those existing apps for a lower cost ... and do more with less,'' he says.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
FintechOS announces results beyond expectations in 2018

FintechOS announces revenues of 6 million Eur from selling FintechOS technology in just one year from inception. This amount combines 1 million Eur from annual recurring revenue for licenses and 5 million Eur

 Read Full article »
Tremend joins Mellanox in powering the majority of Top 500 supercomputers

Tremend - one of the fastest growing software companies in Romania - has signed an agreement with Mellanox Technologies, a leading supplier of end-to-end connectivity solutions for servers and storage, with hea

 Read Full article »
Almost 19,000 entrepreneurs have already applied for Start-up Nation

The Start-up Nation 2018-2019 program has been accepting business projects for almost a month now, even though the state budget for this year has not yet been passed.

 Read Full article »
Webhelp Romania aiming for EUR 10 million turnover growth, 500 new employees in 2019

Romania's outsourcing market, which recorded two-figure growth in a year, will attract new investments and generate new jobs in 2019, a year full of challenges. After a 2018 that repositioned Romania on the map

 Read Full article »
Manpower: Robots will be your colleagues not your replacement

Fears that robots will eliminate your job are unfounded with a growing number of employers planning to increase or maintain headcount as a result of automation, staffing company ManpowerGroup said in a survey

 Read Full article »
Study: Five out of 10 employers eye lay-offs

Almost 5 out of 10 employers would proceed to lay-offs, according to a survey conducted by the National Council for Small and Medium Sized Companies (CNIPMMR).

 Read Full article »
US company Visteon looks for software developers at Timisoara

Visteon, automotive supplier focused exclusively on cockpit electronics, it is setting up a new product development center in Timisoara, Romania. The company plans to build a team of 400 employees in Romania,

 Read Full article »
Gabriela Mechea takes over the helm of ANIS

The Software and Services Industry Employers Association ANIS appointed Gabriela Mechea as the organizations' executive director, replacing Valerica Dragomir who left the association after 17 years.

 Read Full article »
Poll: 2018 was hard for recruiting – 29 Interviews to one hire

Nearly nine out of ten companies had a tougher time finding suitable employees in 2018 compared with previous years, interviewing an average 29 candidates before hiring one person, a poll by HappyRecruiter show

 Read Full article »
CBRE maintains its market leader ranking with 24 per cent market share on the Bucharest-based office segment

In 2018, CBRE, the real estate consultant managed 24 per cent of the Bucharest-based office market, according to a release of the company.

 Read Full article »
 
 
MOST READ ARTICLES
» The most appreciated companies from th...
» The Outsourcing industry announces its...
» Webhelp Romania aiming for EUR 10 mill...
» Deloitte's Tech Trends 2019 report: B...
» Tremend joins Mellanox in powering the...
» Manpower: Romania's labor market, more...
» Bucharest, in the top of cities in Eur...
» Genpact's COO: Staying ahead of the cu...
» Molson Coors started to grow its busin...
» SocGen's EBS division to grow 60%, exp...
 
EDITOR CHOICE
Nomination are now open for Romanian Business Services Forum and Awards

Nominations have opened for the prestigious Romanian Business Services Forum & Awards. The 2019 awards will continue to recognize and reinforce the important contribution made by business services professionals

 Read Full article »
Study: 89 per cent of finance teams yet to embrace Artificial Intelligence

Report by Association of International Certified Professional Accountants and Oracle shows that almost 90 per cent of finance teams do not have the skills to support digital transformation.

 Read Full article »
Bucharest, in the top of cities in Europe with the largest number of experts in high-tech industry

Bucharest is among the top cities boasting the most experts in the high-tech innovative industry, with over 70,000 current employees, next to London, Dublin, Madrid or Budapest, reads a study conducted by CBRE

 Read Full article »
CBRE study: Post-millennials, the happiest about their offices

During 2018, real estate consultancy company CBRE conducted the first study dedicated to work environment in office buildings in Bucharest. The respondents have been structured in four age segments, such as Z g

 Read Full article »
Deloitte's Tech Trends 2019 report: Beyond the digital frontier

The recently released Deloitte's Tech Trends 2019: Beyond the digital frontier, as each Tech Trends report in the series conducted by the consultancy company, lobbies for embracing the increasing, often mind-b

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area | GDPR policy
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events