Europe Still Reveals Strong Growth Outlook for Datacentres Says Broadgroup Consulting
Post time:2012-05-09Source:http://www.marketwatch.comAuthor:reprintEditor:Zhang Xiaoru

Despite concern about economic challenges in Europe, datacentre outsourcing growth will remain resilient, said BroadGroup Consulting in a forthcoming report, Datacentres Europe IV.

The first details of the new report results will be presented at Datacentres Europe 2012 which takes place in Nice, France 23-24 May ( www.datacentreseurope.com ).

The report notes that there has been concern that economic challenges in Europe would impact the growth of datacentre outsourcing but the market remains highly resilient. Outsourcing remains less than 15% in Western Europe creating significant growth opportunities, allied to ongoing demand for datacentre space from growth in cloud computing, bandwidth usage, digital media, e-commerce, social networking, mobile and more vertical market elements such as increased regulation in certain industries. The high cost of self-build has encouraged more companies to consider an outsourced solution.

Cloud computing is a new vertical market driver with colocation companies now seeing as much as 30% of revenues from this segment.

Although each country in Europe has specific issues which are covered in detail in the report there remains an ongoing focus on Frankfurt, Paris, London and Amsterdam, but cities such as Dublin and Zurich are seeing strong growth. The Nordic and Scandinavian countries - who will be present at the event - are looking to take advantage of low cost power and government incentives.

"A key part of the report will be assessing the competitive landscape and how this will evolve in the next five years," said Steve Wallage, managing director, BroadGroup Consulting. "The Western European market remains characterized by many small and specialist third party facilities -- for example, BroadGroup has identified over 400 such datacentres in the UK. At the other end of the scale, the largest players are growing in size and increasingly differentiated by their breadth of portfolio and financial strength. While the strong recent performance of the outsourced datacentre market has tended to help the vast majority of providers, the market will increasingly be divided into winners and losers."

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