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Equinix dominating, closely followed by Digital Realty in colocation sector: Synergy Research Group 

As per the data from Synergy Research Group, 59% of the global retail and wholesale colocation revenues came from just 20 metro cities.

Of these 20 metro cities, ten are in North America, four in EMEA, and six in APAC region. As per the findings, top 5 of them (Washington, New York, Tokyo, London, and Shanghai) alone accounted for around 26%, while remaining 15 metros accounted for 33% of the total market.  

During 2017, the colocation revenue growth in top 5 metros was 2%more compared to rest of the world (RoW). Shanghai, Beijing, Hong Kong, and Washington saw over 15% annual growth, where growth in wholesale was higher. Chicago saw rapid growth in wholesale but fell weaker in retail colocation.

Individually, during Q3 of 2017, retail colocation seized 72%, while wholesale seized 28% of Q3 revenues. Equinix dominated the market by revenue during the quarter, leading eight of the top 20 metros. Digital Realty is predicted to dominate five more Metros, if a full quarter of acquired DuPont Fabros operations were included in its members, the report stated.

“While we are seeing reasonably robust growth across all major metros and market segments, one number that jumps out is the wholesale growth rate in the Washington/Northern Virginia metro area,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. “It is by far the largest wholesale market in the world and for it to be growing at 20% is particularly noteworthy. The broader picture is that data center outsourcing and cloud services continue to drive the colocation market, and the geographic distribution of the world’s corporations is focusing the colocation market on a small number of major metro areas.”

Also read: Hyperscale data-center count will soon touch 400-mark: Synergy Research

21Vianet, @Tokyo, China Telecom, CoreSite, CyrusOne, Global Switch, Interxion, KDDI, NTT, SingTel and QTS, were the colocation operators to lead in the top 20 metros.

Datacenter News

Hyperscale data-center count will soon touch 400-mark: Synergy Research 

As per the new data from Synergy Research Group, the number of large data centers operated by hyperscale providers will soon touch the 400-mark.

By the end of 2017, the total might be over 390, after new data center openings in China, India, and Malaysia.

US continues to dominate in cloud and internet technologies, accounting for 44% of major cloud and internet data center sites, followed by China (8%), Japan (6%) and UK (6%).

The data center sites in Australia, Germany, Singapore, Canada, India and Brazil, accounted for 3-5% each.  

The increase in massive hyperscale data centers is obvious, since more and more businesses are going for software services over the internet or private networks.

Hyperscale growth goes on unabated and we already have visibility of at least 69 more hyperscale data centers that are at various stages of planning or building. We will pass the 500 milestone before the end of 2019,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. “It is remarkable that the US still accounts for almost half of all hyperscale data centers, reflecting the US dominance of cloud and internet technologies. Other countries are now featuring more prominently in terms of data center build, but even three years from now we forecast that the US will still account for some 40% of the worldwide total.”

Most of the new data center openings in 2017 were during the mid-year period, which set new data centers in Germany, UK, Singapore, Australia, Brazil, and US.

The Synergy Research Group analyzed data center sites of 24 of the major cloud and internet service firms worldwide, each of which had 16 data center sites.

The leading cloud providers─ AWS, Microsoft, IBM, and Google, had the most number of data center locations globally (each having 45 or more), followed by Oracle and Alibaba.

The other leading companies like Apple, Twitter, Facebook, etc. had their data centers primarily in either US or China.

Also read: Equinix expands its data center platform to establish interconnection between businesses worldwide

Synergy Research Group is keeping track on 69 hyperscale data centers which are either in planning or development stages. The research firm estimated that the total might cross 500 milestone by the end of 2019.

Cloud News Datacenter News

Data Center Infrastructure Market Growth Lags, Public Cloud Flourishes: Synergy Research Group

Synergy Research Group’s new Q2 data shows that the quarterly spending on overall data center hardware and software has grown by only 5% in the last 2 years, while spending on the public cloud portion of the same has grown by 35%.

The spending on traditional, non-cloud data hardware and software has also decreased by 18%. But private cloud infrastructure market has grown, though less compared to public cloud.

The total revenues of data center infrastructure equipment (cloud & non-cloud hardware and software), in the second quarter were over $30 billion, of which 30% accounted for public cloud infrastructure.

Operating Systems, networking, servers, storage and virtualization software accounted for 96% of the overall data center infrastructure market, with the remaining being comprised by management and network security software.

“With cloud service revenues continuing to grow by over 40% per year, enterprise SaaS revenue growing by over 30%, and search/social networking revenues growing by over 20%, it is little wonder that this is all pulling through continued strong growth in spending on public cloud infrastructure,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group.

“While some of this is essentially spend resulting from new services and applications, a lot of the increase also comes at the expense of enterprises investing in their own data centers. One outcome is that public cloud build is enabling strong growth in ODMs and white box solutions, so the data center infrastructure market is becoming ever more competitive,” he added.

Original Design Manufacturers (ODMs) hold the largest part of the public cloud market, where Cisco is leading as an individual vendor, followed by Dell EMC and HPE.

Dell EMC was reportedly the leader in private cloud market in Q2, followed by HPE and Microsoft.

Also read: Dell EMC and HPE compete for top spot in server market as worldwide server shipments grew by 2.4 percent in Q2 2017: Gartner report

By segment, HPE is leading server revenues, while Dell EMC leads strong in storage, and Cisco is dominating the networking segment. Microsoft appears in the rankings majorly due to its dominance in server operating system and virtualization applications.

Other than Cisco, Dell EMC, HPE, and Microsoft, the other leading vendors in the market are IBM, Huawei, VMware, Lenovo, Oracle and NetApp.