Vendors to focus on green data centers for less energy consumption and emissions
Procurement market intelligence analysts have announced the top five leading suppliers for the data center services in their latest research report. APAC will be the fastest growing region in the global data center services market through 2020, with Singapore having the highest growth rate. The major factor for the rapid growth of this region is the increased adoption of energy-efficient data center infrastructure by end-users.
This category spend intelligence report is based on the synthesis, analysis, and interpretation of information about the global data center services market collected from specialized sources. The analysts have derived insights using a mix of primary and secondary research with an aim to provide a holistic picture of the market.
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Competitive vendor landscape
The data center industry is highly fragmented, owing to the presence of a large number of global players. However, the market also comprises several small service providers that have the edge over international players in terms of regional expertise and local know-how. The end-users of the data center services market include advertising, e-commerce, government, mobile, media and entertainment, healthcare, gaming, and cloud-based service sectors. Service providers in the market are focusing on expanding their portfolios to meet specific demands, which has led to intense competition in the market.
According to Angad Singh, a category specialist at Technavio, “Vendors like CyrusOne, Verizon Communications, CenturyLink, CoreSite Realty, and Next Generation Datacenter are gaining regional expertise and improving their service portfolios to become industry leaders by 2020. They are also extending geographical reach to tap into untapped markets through making investments in the technological innovations and research activities. Several vendors are offering product bundling to achieve higher cost savings and profit margins.”
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Top five suppliers in the data center services market space
Digital Realty
Digital Realty is the largest global data center and colocation solutions provider. The company operates through 139 data centers, located across North America, Europe, Asia, and Australia. It has an operational presence across sectors such as advertising, healthcare, government, media and entertainment, networks, gaming, and finance. Through its strategic planning, the organization has enhanced the cost-effectiveness of its cloud-based and colocation services after its acquisition of Telex in 2015.
Key services: Cloud services, colocation, networking, security, backup and disaster recovery, and managed services.
Equinix
Equinix operates through 145 data centers, located across the Americas, EMEA, and APAC. It has an operational presence across industries like advertising, e-commerce, government, media and entertainment, healthcare, and gaming. In 2016, the company announced its investment plans for the expansion of its production capacity in cities like Tokyo, Dallas, Sao Paulo, and Sydney.
Key services: Colocation, networking, cloud-based services, backup and disaster recovery, security and connectivity, and managed services.
Switch
Switch SUPERNAP has a customer base of more than 1,000 clients, most of which are listed under Fortune 1000 list. The company owns around 218 patents. It offers services to sectors such as consumer goods, gaming, telecom, media and entertainment, IT and digital media, finance, and e-commerce. In 2016, Switch announced a tie-up with Radware and has planned to incorporate Radware’s Attack Mitigation System” in its systems to mitigate the threat of the Trojan virus. Switch is also making investments in the development of its SUPERNAP data center.
Key services: Colocation and colocation services, cloud services, network connectivity, managed services, and data backup.
Microsoft
Microsoft has invested around $12 billion in 2015 for research activities to improve its product offerings in cloud computing and other related technologies. The company has adopted solutions such as application and service engineering, cloud and enterprise engineering, and windows and device engineering to enhance its operational capabilities. The firm has an operational presence across sectors such business services, education, consumer goods, construction, and energy and utilities.
Key services: Data and network security, cloud-based services, data backup and recovery, managed services, network connectivity, and colocation.
Quality Technology Services
Quality Technology Services operates through more than 24 data centers that support around 1,000 customers across the globe. Its key customers are from end-user segments such as government, IT and digital media, finance, and healthcare. The company also offers customized data centers that can cater to the colocation requirements of buyers. In 2015, Quality Technology Services acquired Carpathia Hosting to extend its service portfolio in the managed hosting domain.
Key services: Managed services, network connectivity, colocation, security, and cloud services.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Data center Services – Procurement Market Intelligence Report 2016’.
