Data center spending in Asia reaches $10B: report

Data center spending in Asia reaches $10B: report

Staff writer  |   March 30, 2012
telecomasia.net
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While interest around data center services (DCS) is extremely high, the market structure, dynamics and maturity differ across the world, according to a report.

The report from Gartner also said the shift toward industrialized services, such as infrastructure utility services (IUS), cloud computing infrastructure as a service (IaaS) and platform as a service (PaaS) is a global trend in the data center services market.

“Many events have affected the DCS market in the past two years, with symptoms of a traditional market at the tipping point from maturity to reinvention or decline,” said Claudio Da Rold, vice president and distinguished analyst at Gartner.

In North America, hosting (42%) and cloud IaaS have achieved the highest level of client adoption, while the markets in the rest of the world are dominated by data center outsourcing (80%).

Other drivers across the global markets are economic growth and the buying trends of small or midsize businesses (SMBs). Combined, these factors cause the DCS market to evolve at a different rate toward the new delivery models in the macro geographies.

In the Asia Pacific region, DCS was $10 billion in 2011, while web hosting and co-location were $2.5 billion, and public cloud services penetration was 9.8% in Japan and 3% elsewhere.

Japan and South Korea are the most vibrant Web hosting markets for local content, while Singapore and Hong Kong are important regional hubs for multinationals. Other developed markets include Australia, New Zealand and Taiwan.

 

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