Consulting firm BroadGroup has released the new edition of its seminal report on the data centre market in Europe.
Representing 27% of global market revenues for third-party data centres, Europe is poised for continued growth in co-location and cloud over the next four years. Following its proposed acquisition of TelecityGroup – to be closed in 2016 – Equinix will lead the market in terms of space, holding a total share of 9%.
Much expanded from previous reports, Data Centre Europe 6 provides forecasts to 2019 for co-location, hosting and cloud covering 18 countries in Europe and profiles and assessments of 16 major players in the market. The report provides an analysis of the broader trends and future developments in the sector, and market shares at country level. It also extends the area of analysis to include hosting and IaaS in Western Europe.
The report also suggests that user procurement is evolving from a mix of property, facilities management and specific data centre input, to one focused more on total cost of ownership, wider IT and cloud issues and power efficiency. These concerns open opportunities for location agnostic facilities and for competitive low-cost power locations.
At the same time, the report cites tremendous innovation occurring in the data centre, with enterprises concerned about the impact of these developments during the expected 15 year useful life of the facility. The report suggests that outsourcing to third-party data centres will be sustained and reach 40% of the overall market by 2019.
“We engage with many investors, and they typically still like the sector,” commented Steve Wallage, managing director of BroadGroup Consulting. “The co-location market retains good growth of 9% to 12% per year and impressive margins while hosting and IaaS, covered extensively in this report for the first time, will enjoy higher growth rates with IaaS at 35% to 40%.”
In a changing European market, assessing the longevity of current growth rates and profitability, competition and positioning against dominant players in each sector, and threats from commoditization and new technology, this new report predicts who will be the winners and losers to 2019.