(WEB HOST INDUSTRY REVIEW) — European data center operator Interxion (www.interxion.com) announced on Thursday the continuing demand for outsourced data centers is likely to result in an estimated CAGR of 23 percent in the sector’s major European markets over the next four years, according to a recent study IDC conducted on behalf of Interxion.
IDC projects that the United Kingdom, the Netherlands, Denmark and France markets would see massive growth, with an estimated increase from $1,088 million in 2008 to $3,013 million in 2013.
The survey, which reflects views of respondents from about half of the European market by revenue, also revealed that 95 percent of European companies operate in-house data centres with accelerating migration to outsourcing.
This further supports remarks made by Jim Kerrigan, EVP and director of the National Data Center Practice at Grubb & Ellis at the Data Center Dynamics conference earlier this week. Kerrigan revealed that the demand for data center space is outpacing the supply by three times in the United States.
Contributing to the growth of colocation is the increase of digital content as well as the growth of high-bandwidth consumer and business internet based applications, specifically social networking, public and private Cloud computing and SaaS.
The cost/benefit-driven movement of enterprises to choose carrier-neutral data center colocation over in-house data centre enhancement is also greatly contributing to this growth.
The report also shows that there is a strong correlation between the main challenges of managing in-house data centers and the main perceived benefits of colocation.
Twenty-five to 40 percent of respondents said that colocation offers many benefits, including better resilience, scalability and flexibility, better security, and greater cost-effectiveness.
Meanwhile, 20 percent of respondents said that hiring and retaining skilled staff is a key challenge, and 24 percent believe that data center operators have better skills.
“These findings are very encouraging for the continued long-term growth of carrier-neutral colocation in Europe, especially when you consider that 95 percent of European companies currently operate in-house data centers, and various factors are supporting the migration of these to outsourced centres,” says David Ruberg, Interxion CEO. “It is also important to bear in mind that these are long-term trends, not short-term fads.
“As well as recognizing the reduction in overall costs that can be gained through colocation, our respondents see the resilient connectivity that carrier-neutral facilities provide as key to the successful delivery of the benefits of next-generation technologies.”
The report surveyed over 400 senior-level IT decision makers across a range of industries in the UK, France, the Netherlands and Germany, as well as a selection of carrier-neutral colocation providers.
