Story image

Frost & Sullivan predicts emerging APAC markets will pave data center growth

18 Jan 2017

Frost & Sullivan says Asia Pacific will lead the modular data center infrastructure market until at least 2020, but growth will continue at a moderate pace.

The analyst firm has published the results of its Global Data Center Infrastructure Solutions Market report, which shows that growth will progress, despite data center consolidation, high capital expenditure and end-user scepticism towards unfamiliar solutions.

The growth is coming from demand in data storage, security and speed, resulting in large data traffic growth and supporting infrastructure.

Leading the way is the Asia Pacific region, with much of the focus on China.

"While North America accounts for the highest revenues, emerging markets will grow at a faster rate, and China will lead the Asia-Pacific region,” says Gautham Gnanajothi, energy research analyst.  

Gnanajothi says that edge computing and disaster recovery are potential growth areas, “indicating a shift toward bringing data centers closer to end users. This, too, will drive modularity in data centers in the Asia-Pacific region”.

The report also found that cooling products are the fastest growing segment and are taking the most total market revenue in 2015-2016, followed by racks and rack options.

However modular solutions are being underestimated in the market as users remain focused on traditional technologies. Gnanajothi says this presents challenges for vendors.

"Further, the user base is contracting as data center owners turn to site consolidation to get the best value from IT investments; reducing the number of physical data center locations means fewer management issues and higher cost savings in terms of cooling and power needs,” Gnanajothi continues.

Frost & Sullivan expects that vendors will leverage partnerships and alliances, which is already happening. Rack manufacturers are teaming with power distribution unit manufacturers, UPS and cooling participants and creating allies with modular data center providers. The analysts expect user education about product innovations will also occur. 

Silicon Valley to lose its tech centre crown to global cities
A new survey of tech industry leaders found the majority believe it is likely the Valley will be usurped within four years by other cities around the world.
Hybrid cloud set to mitigate vendor lock-in within Thailand
IDC has released its top 10 predictions for Thailand's IT industry through to 2022.
French cloud giant sets up shop in two APAC data centres
OVH Infrastructure has expanded its public cloud services in the Asia Pacific (APAC) market operating from two data centres within the region.
SecOps: Clear opportunities for powerful collaboration
If there’s one thing security and IT ops professionals should do this year, the words ‘team up’ should be top priority.
Data center colocation market to hit $90b in next five years
As data center services grow in popularity across enterprises large and small, the colocation market is seeing the benefits in market size.
Google doubles down on hybrid cloud strategy
CSP is a platform that aims to simplify building, running, and managing services both on-premise and in the cloud.
OVH launches public cloud down under
OVH Public Cloud services is expanding to Australia out of two data centres - one in Sydney and one in Singapore.
Huawei invests in cloud deployment for Singapore
The company says its new strategic investment reflects growing demand for cloud service solutions across Asia Pacific.