Colos Are Hot, but Don't Count out the Traditional Data Center

Posted by Instor on Mar 29, 2018 9:00:00 AM

The colocation and global data center markets are hot and are on the verge of getting hotter according to recent trends, predictions and forecasts. But how does this impact traditional, private data centers?


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Private Data Centers: Not Going Away Anytime Soon

According to Gartner, global server revenues grew by more than 25 percent by the end of 2017 where HPE lead worldwide and Dell leads in the number of units shipped. Another leading indicator includes REIT which shows no slowing down for compute power and capacity. The global revenue from wholesale and retail data center colocation markets from 2014 to 2021 shows a marked uptick after 2018 toward $48 billion (USD). Although public and hybrid clouds will continue increasing their market share, there is still a demand for private cloud adoption.  

According to Synergy Research Group, the cloud computing market has reached $180 billion for 2018, a 24 percent increase over last year.

In 2017, the worldwide retail and wholesale colocation market revenues accounted for 59 percent from the 20 metro areas. Of these, the top five metros accounted for 26 percent, the six to 10 metros accounted for 15 percent, and the 11-20 metros accounted for 18 percent according to Synergy Research Group.Top five metros:
  • London
  • New York
  • Shanghai
  • Tokyo
  • Washington, D.C.

Top market leaders of 2017:

  • China Telecom
  • CoreSite
  • CyrusOne
  • Digital Realty
  • Equinox
  • Global Switch
  • Interxion
  • KDDI
  • NTT
  • QTS
  • SingTel
  • @Tokyo
  • 21Vianet

A 2018 RighScale State of the Cloud Report included the results from 96 percent of the respondents who are using the cloud showed 92 percent public and 75% private. It breaks down to 21 percent using public cloud only, 71percent hybrid, 4 percent are using private only.

In summary, the report states that multi-cloud is preferred among enterprises, three percent increase in public (92 percent) and private (75 percent) adoption over last year, public cloud revenues are quickly growing, IT teams are focused on governance and brokering cloud, primary initiatives are determined to reduced wasted cloud spending, increased container use, docker and kubernetes are growing, configuration tool use with Ansible continue growth, Azure is encroaching on AWS’ lead among the enterprises, and private cloud growth to set new levels.

Regarding the enterprise cloud strategy, 81 percent are using multi-cloud, single public cloud is at 9 percent while multiple public clouds represent 21 percent, 4 percent use single private cloud while 10 percent use multiple clouds, and of the multi-cloud, 51 percent are hybrid clouds. Its estimated that for 2018, 66 percent of public cloud users will spend 20 percent, 35 percent of cloud users are wasting the spend, cost savings are a priority for 58 percent of cloud users, and companies are using five percent of public and private clouds on average.

Among the top priorities for enterprise central IT, those building private clouds account for 8 percent and those using hosted private cloud account for 9 percent for 2018. Where is the growth coming from? Here are the top five drivers:

  • Serverless with 75 percent growth
  • Container-as-a-service with 36 percent growth
  • Server Database-as-a-Service SQL (DBaaS SQL) with 26 percent growth,
  • Server Database-as-a-Service No SQL (DBaaS NoSQL) with 22 percent growth
  • Disaster recovery as a service (DRaaS) with 21 percent growth

The 2018 private cloud growth, private cloud use will continue to grow with only seven percent for enterprises and SMBs each and planning will double in use during this year – 47 percent of enterprises and 35 percent of SMBs will grow by more than 20 percent during the same time.

The Cisco Global Clound Index (GCI) forecast through 2021 include a three-fold increase in global cloud data center traffic amounting to over 20 Zettabytes per year and 95 percent of all data center traffic will come from the cloud.

As we continue to watch and monitor the markets, only time will tell regarding revenues, trends,  and market leaders. 2018 could very easily set new records and growth may exceed predictions – keep your eyes on leading indicators - International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker, market research and Forrester.