Asia-Pacific data center service market to touch US$9.25 billion in 2017

Infotech Lead Asia: Asia-Pacific data center service market earned revenues of over US$2.55 billion and US$3.03 billion in 2010 and 2011 respectively, according to Data Center Services Market 2010 from Frost&Sullivan.

The market is estimated to reach US$9.25 billion in 2017.

According to Frost and Sullivan, most of the traditional data hubs of Hong Kong and Singapore are facing several operational hurdles. Space restraints, higher reality prices and increasing operational costs are the major hurdles faced by these data centers.

“Most data center’s are working at high utilization levels and service providers are hard pressed to identify the right locations for new data center build outs that provide the required infrastructure, at a sustainable price,” says Frost & Sullivan Research Analyst Mayank Kapoor. “Market participants are adopting virtualization, consolidation and cloud computing to alleviate some of these cost pressures.” added Kapoor.

The growing adoption of high-density blade servers results in rapid increase of power and cooling requirements.  The latest power and cooling technologies enable better packaging of effective blade servers, so they are expected to reduce the demand for data center space.

“As the outlook for North America and Europe is not very promising, global businesses are focusing their efforts on Asia Pacific to drive the next phase of corporate growth,” notes Kapoor. “Global service providers have identified this as an opportunity and are beefing up their presence in the region, as an increasing number of businesses are looking at third-party service providers to supplement or replace their captive facilities,” added Kapoor.

Virtualization is the latest trend in datacenters. Recently Chantel Lindeman, head of Information and Communication Technologies at Frost & Sullivan, noted that data center managers are looking to optimize their existing infrastructure, and maximize the investments already made. And increasingly, this is being achieved through virtualization.

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