Report: Data Center Investments Are Dramatically Reshaping The IT Industry
Cloud infrastructure investment keeps growing.
New data from Synergy Research Group shows worldwide spend on cloud infrastructure services continues to grow at around 50% per year, requiring the leading cloud providers to invest many billions of dollars in expanding their global network of hyperscale data centers. The top four cloud providers alone have some 110 data centers located in 20 different countries, most of which are huge facilities. Synergy expects their data center count to grow by 20% in the next twelve months, which will be in addition to expanding the capacity of existing facilities. Synergy has also identified well over $25 billion in recent data center-oriented M&A deals, with data center specialists like Equinix, Digital Realty, NTT and IBM leading the charge. The need to continually invest in expensive data center facilities is dramatically reshaping the IT industry.
Economics and new technologies are causing companies to radically change the way they choose to support their IT needs, which is driving consolidation and restructuring in the cloud and data center markets. The impact of the changes can be seen in many places: