Managed Hosting and Colocation in 2009 and Beyond

• By Tom Millitzer on September 16, 2008

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From the Hosting Summit - Dan Golding packed a lot of future in this presentation. However the one point most people keyed on was the growth of the Data Center and managed hosting industry.

Get this there is a 15% growth demand, and we are talking worldwide, but there is only a 5% supply ramp-up and this is probably through 2012

I think some clarification is in order. This become a real-estate capital tanking problem, yes some explanation.

First 15% demand. This year, next year and several years forward we need 15% more servers, or sq./ft, or power capacity (he thinks this is a trend) than we did last year. Compounding makes this interesting.

Supply ramp up 5%. That means we are building only 5% of our needs be it servers, sq/ft or power capacity.

As we are falling short in some ways – there is a tremendous upside for growth.

Real-estate Capital tanking – You may have noticed the Lehman Bros largest bankruptcy in the US history. Bankers are strange, now all real estate is bad.

Google screwed it up. They build that 500k-sq/ft data center here and there bankers think there is an oversupply.

Obviously someone needs to increase the supply – how about you?

Bottom line – good times could be ahead if you can convince the banker.

Side note: This is just a small snippet of the presentation. 

More about Tom:

NCC - New Commerce Communications

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