Data Center Services in the EMEA: The Ups and Downs

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We’ve been observing The Data Center Services Market in the EMEA region with a keen eye for the past couple years, and are excited to forecast some big things for both vendors, and end-users involved in this field.

As of 2012, the size of this market was already estimated at a whopping US $2.31 billion, and after extensive research our analysts are confident in predicting that this number will double by 2016.

This huge increase is primarily thanks to these four key drivers:

  • Need for Advanced Data Center Facilities
  • Limited Capital Infrastructure for Investment
  • Increasing Need to Focus on Core Business Activities
  • Increasing Consolidation and Virtualization of the Current Data Center Infrastructure

There is also an increasing focus in the EMEA region on green data centers and green computing facilities which is which will undoubtedly boost the demand for data center services. The same thing goes for the evolution of cloud computing and cloud-based services, and the rapidly increasing adoption of virtualization.

Nevertheless, none of this is to say that vendors in the Data Center Services Market in the EMEA is not without its challenges. Namely the following:

 

  • Multiple Vendor Approach Creating Operational Challenges
  • Increasing Cost of Management Resources and Expertise
  • Lack of Capacity Planning in Enterprise Networks
  • Growing Concern over Enterprise Security

But just how much of an impact will these barriers have on the demand for data center services in the EMEA? Well, we’ve compiled this graphic to illustrate the combined effect of the market’s positive drivers and barriers.

 

As you can see from above, the force of the market’s driving factors are exponentially higher in impact than any of the challenge’s on the “data center services” horizon. For this reason, we at TechNavio think it’s a more than safe bet to that this industry will be both an excellent field to invest and participate in!

For more info view our 2012-2016 market research report on the Data Center Services Market in the EMEA.