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Uk Data Centres To See Almost 45% Increase

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Home GENERAL English

Uk Data Centres To See Almost 45% Increase

globaltelconews-admin by globaltelconews-admin
21 November, 2006
in English
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Using material based on primary interviews with the end user market and vendors, the report – UK Data Centres – The Carrier Neutral Marketplace – Is it now a sellers market? – underlines the increasingly difficult task of user companies owning and managing an estimated 1,500 data centres across the country, and the reasons why managers are now more actively seeking solutions offered by third party providers from managed services to full outsourcing.

Yet the conundrum confronting carrier neutral players in the UK is that at a time of increased demand, space availability is extremely restricted.
Given lead times, investment cost and business planning, the report suggests that only 45% more space will actually be available by 2010. Conversely, rack pricing is set to soar by more than double.

Much conspires to present this outcome, and the report forensically analyses the origins and influences that provide both opportunities and challenges to data centres over the next few years. Among the key competitive issues faced by the carrier neutral sector is a shift by carrier owned data centres such as BT, Cable and Wireless, COLT and Verizon into the large enterprise space. Systems Integrators too pervade the same
market space and are often customers of the neutral data centres.

A central question of the report is whether the UK carrier neutral space is
now a sellers market. In response, the report assesses current user
requirements, and how easily or not they might be met.

“Beyond this key question lie many others about the justification for
carrier neutral acquisition, new-build, space competition and the intriguing dimension of new player market entry,” commented Nicola Hayes, vice president at BroadGroup. “The report also questions the rationale behind the business strategies of carrier neutral data centres, and whether short term thinking prevails over a long term assessment, and the issue of price rather than premium.” Finally the report provides forecasts of space and pricing through to 2010 and offers pointers on some of the emerging questions for future market development in the UK marketplace.

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